RTX (RTX) Stock Sinks As Market Gains: What You Should Know

In the latest close session, RTX (RTX) was down 2.72% at $141.85. This change lagged the S&P 500's 1.11% gain on the day. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%. Shares of the an aerospace and defense company witnessed a gain of 10.17% over the previous month, beating the performance of the Aerospace sector with its gain of 6.17%, and the S&P 500's gain of 3.92%.Market participants will be closely following the financial results of RTX in its upcoming release. In that report, analysts expect RTX to post earnings of $1.45 per share. This would mark year-over-year growth of 2.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.68 billion, up 4.84% from the year-ago period. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.97 per share and revenue of $84.14 billion, indicating changes of +4.19% and +4.21%, respectively, compared to the previous year. Investors should also take note of any recent adjustments to analyst estimates for RTX. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.09% downward. RTX presently features a Zacks Rank of #3 (Hold). Looking at its valuation, RTX is holding a Forward P/E ratio of 24.42. This valuation marks a premium compared to its industry average Forward P/E of 23.97. Meanwhile, RTX's PEG ratio is currently 2.64. 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 of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 2. The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 40, putting it in the top 17% of all 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks