Raytheon (RTX, Financial) shares saw a significant decline of 8.99% today, driven by the disappointing first-quarter 2025 results and guidance that failed to impress investors. This reaction comes as the company reported modest growth projections for the adjusted EPS and organic sales guidance of 4% to 6%, which slightly missed consensus expectations.
Despite a positive performance in terms of organic revenue, RTX faced pressure from market concerns related to tariffs and the lack of any upward adjustments to profit targets for the year.
As of the latest data, RTX is trading at $114.78. The company's financial health exhibits several warning signals, including a Grey Altman Z-Score of 2.12 indicating some financial stress. RTX's gross margin has been on a long-term decline of -1.7% per year, and its dividend yield is near a 10-year low, making it less attractive to dividend investors.
However, not all indicators are negative. RTX has a Piotroski F-Score of 7, suggesting a very healthy situation. Additionally, the stock's current price-to-earnings (P/E) ratio stands at 32.33, which is close to a 1-year low, potentially indicating a valuation opportunity for long-term investors.
Looking at the valuation, RTX is considered "Modestly Undervalued" according to the GF Value. Its GF Value is estimated at $128.42, which implies some potential upside from the current price. For more information, check the GF Value page.
The company's enterprise value (EV) stands at $208.27 billion, and the market capitalization is approximately $153.24 billion. While RTX's operating margin is expanding, recent insider selling activities, with 207,567 shares sold over the past three months without any insider buying, raise caution.
In conclusion, while RTX's recent performance and outlook have led to an unfavorable market response, the stock's current valuation metrics and ongoing challenges may present a mixed picture for investors considering a position in Raytheon (RTX, Financial).
