In the latest trading session, Raytheon (RTN) closed at $196.74, marking a +0.93% move from the previous day. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the defense contractor had gained 4.25% over the past month, lagging the Aerospace sector's gain of 5.27% and outpacing the S&P 500's gain of 3.23% in that time.
Wall Street will be looking for positivity from RTN as it approaches its next earnings report date. In that report, analysts expect RTN to post earnings of $2.86 per share. This would mark year-over-year growth of 27.11%. Our most recent consensus estimate is calling for quarterly revenue of $7.22 billion, up 6.06% from the year-ago period.
RTN's full-year Zacks Consensus Estimates are calling for earnings of $11.73 per share and revenue of $28.94 billion. These results would represent year-over-year changes of +10.56% and +6.94%, respectively.
Investors should also note any recent changes to analyst estimates for RTN. These revisions help to show the ever-changing nature of 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. 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 remained stagnant within the past month. RTN is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that RTN has a Forward P/E ratio of 16.62 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.91.
Also, we should mention that RTN has a PEG ratio of 1.56. 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. Aerospace - Defense Equipment stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% of all 250+ industries.