Consider This Before Taking a Position in Raytheon Technologies (RTX)

Raytheon Technologies moved -1.7% this evening session, trading between a high of $75.71 and a low of $73.66 per share. Yesterday the stock finished at $76.9 per share, compared to an average analyst target price of $99.43.

RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers worldwide. The large-cap aerospace company is based in the United States, and over the last twelve months it has returned a dividend yield of 2.9%. Raytheon Technologies has trailing twelve months earnings per share (EPS) of 3.77, which at today's prices amounts to a price to earnings (P/E) ratio of 20.0.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 1.42. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Overview of the Company's Gross Margins:

Date Reported Revenue ($ k) Cost of Revenue ($ k) Gross Margins (%) YoY Growth (%)
2023-02-07 67,074,000 -53,406,000 20 5.26
2022-02-11 64,388,000 -51,897,000 19 26.67
2021-02-08 56,587,000 -48,056,000 15 -37.5
2020-02-06 45,349,000 -34,598,000 24 14.29
2019-04-05 34,701,000 -27,465,000 21 -19.23
2018-02-09 59,837,000 -44,201,000 26

At 20.8%, Raytheon Technologies's average gross margins are wider than the 16.69% average of its industry peer group, which suggests that the firm might have a competitive advantage.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.