LHX vs. RTX: Which Stock Is the Better Value Option?
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
L3Harris and RTX are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LHX has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
LHX currently has a forward P/E ratio of 24.08, while RTX has a forward P/E of 24.15. We also note that LHX has a PEG ratio of 2.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RTX currently has a PEG ratio of 2.61.
Another notable valuation metric for LHX is its P/B ratio of 2.46. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RTX has a P/B of 3.04.
These metrics, and several others, help LHX earn a Value grade of B, while RTX has been given a Value grade of C.
LHX stands above RTX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LHX is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
L3Harris Technologies Inc (LHX) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 hours ago
- Yahoo
RTX Corporation's Q2 2025 Earnings: What to Expect
Valued at a market cap of $194.7 billion, RTX Corporation (RTX) is an aerospace and defense company headquartered in Arlington, Virginia. It provides systems and services for the commercial, military, and government customers. The company is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Tuesday, Jul. 22. Ahead of this event, analysts expect this aerospace and defense company to report a profit of $1.45 per share, up 2.8% from $1.41 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street's bottom-line estimates in each of the last four quarters. In Q1, RTX's EPS of $1.47 outpaced the forecasted figure by 8.9%. UnitedHealth Stock Is One of the Worst-Performing S&P 500 Stocks in 2025. Should You Buy the Dip? AI Isn't Just About Nvidia: 2 Rising Stars in the Artificial Intelligence Race 'It's a Miracle': Nvidia CEO Says Their New Technology Takes 'AI Supercomputing to a Whole New Level' Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2025, analysts expect RTX to report a profit of $5.97 per share, up 4.2% from $5.73 per share in fiscal 2024. Its EPS is expected to further grow 12.6% year-over-year to $6.72 in fiscal 2026. RTX has rallied 44.7% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 13.4% uptick and the Industrial Select Sector SPDR Fund's (XLI) 22.8% return over the same time frame. On Apr. 22, RTX's shares plunged 9.8% after its Q1 earnings release, despite delivering a better-than-expected performance. The company delivered revenue of $20.3 billion, up 5.2% from the year-ago quarter and 3% above the consensus estimates. Meanwhile, its adjusted EPS rose 9.7% year-over-year to $1.47, exceeding Wall Street expectations by 8.9%. The decline in stock price was primarily driven by its underwhelming fiscal 2025 guidance. RTX expects adjusted sales in the range of $83 billion to $84 billion, and projects adjusted EPS to range between $6 and $6.15. Lack of upward revisions to full-year profit targets, despite solid execution in Q1, might have lowered investor confidence. Wall Street analysts are moderately optimistic about RTX's stock, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 15 recommend "Strong Buy," one suggests a "Moderate Buy,' and eight advise 'Hold.' While the company is trading above its mean price target of $143.87, its Street-high price target of $162 suggests an 11.1% premium to its current price levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 hours ago
- Yahoo
New Strong Sell Stocks for July 3rd
Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: Adecoagro S.A. AGRO is an agro-industrial company. The Zacks Consensus Estimate for its current year earnings has been revised 12.5% downward over the last 60 days. Barings BDC, Inc. BBDC is an investment company. The Zacks Consensus Estimate for its current year earnings has been revised 4.6% downward over the last 60 days. Core Natural Resources, Inc. CNR is a metallurgical and thermal coal company. The Zacks Consensus Estimate for its current year earnings has been revised 44.4% downward over the last 60 days. View the entire Zacks Rank #5 List. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adecoagro S.A. (AGRO) : Free Stock Analysis Report BARINGS BDC, INC. (BBDC) : Free Stock Analysis Report Core Natural Resources, Inc. (CNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
19 hours ago
- Yahoo
Will Reddit Inc. (RDDT) Beat Estimates Again in Its Next Earnings Report?
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Reddit Inc. (RDDT), which belongs to the Zacks Internet - Software industry. When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 297.00%, on average, in the last two quarters. For the last reported quarter, Reddit Inc. came out with earnings of $0.13 per share versus the Zacks Consensus Estimate of $0.02 per share, representing a surprise of 550.00%. For the previous quarter, the company was expected to post earnings of $0.25 per share and it actually produced earnings of $0.36 per share, delivering a surprise of 44.00%. With this earnings history in mind, recent estimates have been moving higher for Reddit Inc.. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Reddit Inc. currently has an Earnings ESP of +35.71%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 31, 2025. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
