Last Updated: 08 Nov 2024
Executive Summary
Raytheon Technologies Corp. (RTX) is a global leader in aerospace and defense, with a market capitalization of $161.8 billion. The company's strong fundamentals, including a high EBITDA margin of 12% and a solid return on equity of 7.35%, indicate its financial health. Despite a recent decline in quarterly earnings growth, RTX's revenue growth remains positive. The stock is currently trading at $120.08, with a forward P/E ratio of 20.28 and a dividend yield of 0.0207%.
Company Overview
Raytheon Technologies is an American multinational corporation engaged in the research, development, and manufacturing of advanced technology products for the aerospace and defense industries. The company's portfolio includes aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones. RTX serves a global customer base, including commercial airlines, governments, and defense agencies.
Fundamental Analysis
Revenue: RTX's revenue for the trailing twelve months (TTM) was $79.04 billion, representing a 0.492% increase year-over-year.
Earnings: Diluted EPS for the TTM was $3.42, showing a decline of 0.911% compared to the same period last year.
Profitability: The company's gross profit margin is 13.67%, and its operating margin is 12%.
Valuation: RTX's trailing P/E ratio is 35.11, while its forward P/E ratio is 20.28. The stock's price-to-sales ratio is 2.047, and its price-to-book ratio is 2.648.
Technical Analysis
Trend: RTX's stock price has been trending upward over the past year, with a 52-week high of $128.7 and a low of $76.62.
Moving Averages: The stock's 50-day moving average is $122.08, and its 200-day moving average is $106.87.
Support and Resistance: Key support levels for RTX are $115 and $110, while resistance levels are $125 and $130.
Short Term Outlook
In the short term, RTX's stock price may experience fluctuations due to market volatility and earnings expectations. The company's quarterly earnings report for Q3 2024 will be a key factor in determining the stock's direction. If the company reports strong earnings and provides positive guidance, the stock price could rise. However, if earnings disappoint or guidance is weak, the stock price could decline.
Long Term Outlook
In the long term, RTX's prospects are positive. The company is a leader in the growing aerospace and defense industries, and its strong financial position and technological capabilities position it well for continued growth. The company's focus on innovation and its commitment to research and development should drive future revenue and earnings growth.
Analyst Recommendations
Analysts have a mixed view on RTX's stock. Two analysts have a "Strong Buy" rating, seven have a "Buy" rating, 16 have a "Hold" rating, one has a "Sell" rating, and one has a "Strong Sell" rating. The average analyst target price is $129.67, implying a potential upside of 7.9% from the current price.
