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Raytheon Technologies (RTX) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Raytheon Technologies (RTX) closed at $90.72, marking a +1.1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.92%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.54%.

Prior to today's trading, shares of the an aerospace and defense company had gained 6.4% over the past month. This has outpaced the Aerospace sector's gain of 4.05% and the S&P 500's loss of 0.85% in that time.

Wall Street will be looking for positivity from Raytheon Technologies as it approaches its next earnings report date. This is expected to be January 25, 2022. In that report, analysts expect Raytheon Technologies to post earnings of $1.01 per share. This would mark year-over-year growth of 36.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.22 billion, up 4.85% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Raytheon Technologies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.67% lower within the past month. Raytheon Technologies is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Raytheon Technologies currently has a Forward P/E ratio of 18.22. This valuation marks a discount compared to its industry's average Forward P/E of 23.32.

We can also see that RTX currently has a PEG ratio of 1.38. 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. RTX's industry had an average PEG ratio of 3.36 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 6% of all 250+ industries.

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

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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