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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
RTX (RTX)
In July 2023, Raytheon Technologies was renamed as RTX Corporation. On Apr 3, 2020, Raytheon Technologies was formed following the completion of merger between United Technologies and Raytheon Company. Based in Waltham, MA, Raytheon Technologies has emerged as an aerospace and defense company, with pro-forma combined annual revenues of $74 billion as of the end of 2019, providing advanced systems and services for commercial, military and government customers worldwide. Effective July 2023, the company operates through three business segments.
RTX is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 21.2X for the current fiscal year compared to the Aerospace - Defense industry's P/E of 19.8X. Additionally, RTX has a PEG Ratio of 2.2 and a Price/Cash Flow ratio of 14.2X. Value investors should also note RTX's Price/Sales ratio of 2.1X.
Many value investors pay close attention to a company's earnings as well. For RTX, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $6.09 per share for 2025. Per share RTX boasts an average earnings surprise of 9.9%.
RTX should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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RTX Corporation (RTX) : Free Stock Analysis Report