Back to top

Image: Bigstock

RTX (RTX) Increases Yet Falls Behind Market: What Investors Need to Know

Read MoreHide Full Article

In the latest trading session, RTX (RTX - Free Report) closed at $119.20, marking a +0.07% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.

Shares of the an aerospace and defense company have appreciated by 0.99% over the course of the past month, underperforming the Aerospace sector's gain of 3.14% and the S&P 500's gain of 3.67%.

The upcoming earnings release of RTX will be of great interest to investors. The company is forecasted to report an EPS of $1.33, showcasing a 6.4% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $19.95 billion, showing a 5.27% escalation compared to the year-ago quarter.

RTX's full-year Zacks Consensus Estimates are calling for earnings of $5.45 per share and revenue of $79.63 billion. These results would represent year-over-year changes of +7.71% and +7.02%, respectively.

Any recent changes to analyst estimates for RTX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% increase. At present, RTX boasts a Zacks Rank of #3 (Hold).

In the context of valuation, RTX is at present trading with a Forward P/E ratio of 21.84. This expresses a premium compared to the average Forward P/E of 21 of its industry.

Meanwhile, RTX's PEG ratio is currently 2.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 1.88.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 39, this industry ranks in the top 16% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


RTX Corporation (RTX) - free report >>

Published in