RTX (RTX) Rises Higher Than Market: Key Facts

In the latest close session, RTX (RTX) was up +1.39% at $144.66. The stock outpaced the S&P 500's daily gain of 0.52%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 0.52%.

Heading into today, shares of the an aerospace and defense company had gained 5.84% over the past month, lagging the Aerospace sector's gain of 6.68% and the S&P 500's gain of 5.95%.

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The investment community will be closely monitoring the performance of RTX in its forthcoming earnings report. On that day, RTX is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 2.84%. Meanwhile, our latest consensus estimate is calling for revenue of $20.68 billion, up 4.84% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.97 per share and revenue of $84.14 billion, which would represent changes of +4.19% and +4.21%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for RTX. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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.

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, the Zacks Consensus EPS estimate remained stagnant. Right now, RTX possesses a Zacks Rank of #4 (Sell).

In terms of valuation, RTX is currently trading at a Forward P/E ratio of 23.9. For comparison, its industry has an average Forward P/E of 23.85, which means RTX is trading at a premium to the group.

Meanwhile, RTX's PEG ratio is currently 2.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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This article originally published on Zacks Investment Research (zacks.com).

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