RTX Co., Ltd. (New York Stock Exchange:RTX), formerly Raytheon Technologies, and Coca-Cola (New York Stock Exchange:KO) is one of the most talked about stocks on the social media platform Reddit. While RTX and KO stocks are getting a lot of attention and buzz on Reddit, Wall Street analysts are cautiously optimistic about his RTX. However, analysts maintain a strong buy outlook on Coca-Cola stock.
With this background in mind, let’s take a closer look at these trending stocks on Reddit.
Is RTX stock a buy, sell, or hold?
Aerospace and defense company RTX plans to inspect approximately 600 to 700 engines over the next three years due to powder metal manufacturing issues found in Pratt & Whitney GTF engines, the company said. As a result, stock prices came under pressure. RTX is expanding its maintenance capacity, ramping up parts production, and taking various steps to reduce impact. However, this is expected to have a negative impact on the company’s financial performance.
The company expects a negative impact of $3 billion to $3.5 billion on pretax operating income over the next few years. This includes a pre-tax charge of $3 billion in the third quarter. The company lowered its free cash flow forecast from $9 billion to $7.5 billion, saying it expects a cash impact of about $1.5 billion in 2025.
Nevertheless, RTX reiterated its financial outlook for 2023 and its revenue and profit expansion targets for 2020-2025.
Against this backdrop, analysts are cautiously optimistic about RTX stock in the short term. Over the past three months, he has issued 7 buy recommendations, 10 hold recommendations, and 2 sell recommendations, giving the RTX stock a consensus rating of Moderate Buy. RTX’s average price target of $88.29 implies an upside potential of 27.26%.
Is Coca-Cola’s stock price expected to rise?
Wall Street is optimistic about Coca-Cola’s future and expects its stock price to rise. The beverage giant delivered better-than-expected second-quarter profits, reflecting the company’s ability to raise prices and maintain affordability in a difficult macro environment.
Additionally, the company revised its organic sales and EPS forecasts upward, suggesting business momentum is likely to be maintained. Additionally, the company’s ability to return significant amounts of cash to shareholders through increased dividends also drives stock price appreciation.
Coca-Cola stock has a consensus rating of Strong Buy, based on 9 buy recommendations and 2 hold recommendations over the past three months. Meanwhile, the average KO price target of $70.91 implies an upside potential of 35.38% from current levels.
Take-out
RTX and Coca-Cola stock are trending on Reddit. However, near-term headwinds have made analysts cautiously optimistic about his RTX. On the other hand, Coca-Cola is performing well even in a difficult macro environment, and the consensus rating is “Strong Buy.” Also, KO stock is likely to rise (based on analyst price targets), making him a more convincing bet than RTX in the short term.
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