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RTX (RTX) Exceeds Market Returns: Some Facts to Consider

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RTX (RTX - Free Report) ended the recent trading session at $119.23, demonstrating a +0.96% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.31%.

Shares of the an aerospace and defense company have depreciated by 0.74% over the course of the past month, underperforming the Aerospace sector's gain of 1.48% and the S&P 500's gain of 5.79%.

Investors will be eagerly watching for the performance of RTX in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, up 5.43% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $20.58 billion, indicating a 3.27% upward movement from the same quarter last year.

RTX's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $79.76 billion. These results would represent year-over-year changes of +9.49% and +7.2%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for RTX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, RTX holds a Zacks Rank of #3 (Hold).

Digging into valuation, RTX currently has a Forward P/E ratio of 21.32. This indicates a premium in contrast to its industry's Forward P/E of 19.92.

Meanwhile, RTX's PEG ratio is currently 2.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.68 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 38% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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