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Raytheon Technologies (RTX) Gains But Lags Market: What You Should Know

Raytheon Technologies (RTX) closed the most recent trading day at $83.11, moving +1.53% from the previous trading session. This change lagged the S&P 500's 2.59% gain on the day. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.07%.

Coming into today, shares of the an aerospace and defense company had lost 6.54% in the past month. In that same time, the Aerospace sector lost 9.89%, while the S&P 500 lost 9.22%.

Wall Street will be looking for positivity from Raytheon Technologies as it approaches its next earnings report date. In that report, analysts expect Raytheon Technologies to post earnings of $1.12 per share. This would mark a year-over-year decline of 11.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.11 billion, up 5.56% from the year-ago period.

RTX's full-year Zacks Consensus Estimates are calling for earnings of $4.66 per share and revenue of $67.13 billion. These results would represent year-over-year changes of +9.13% and +4.26%, respectively.

Investors might also notice recent changes to analyst estimates for Raytheon Technologies. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.57% lower within the past month. Raytheon Technologies is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Raytheon Technologies's current valuation metrics, including its Forward P/E ratio of 17.58. This valuation marks a discount compared to its industry's average Forward P/E of 23.21.

Investors should also note that RTX has a PEG ratio of 1.69 right now. 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. The Aerospace - Defense Equipment was holding an average PEG ratio of 1.84 at yesterday's closing price.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 19% 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.

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