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Reasons to Add Textron (TXT) to Your Portfolio Right Now
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Textron Inc. (TXT - Free Report) manufactures aircraft, automotive engine components and industrial tools. The company’s expanding product line, solid backlog and strong demand for products will continue to support its performance.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections & Surprise History
Textron’s long-term (three-to five-years) earnings growth is pegged at 11.7%.
The Zacks Consensus Estimate for TXT’s 2023 earnings per share (EPS) is pegged at $5.45. The bottom-line estimates have moved up 2.8% in the past 60 days.
The Zacks Consensus Estimate for 2023 sales stands at $13.76 billion, indicating growth of 6.9% from the 2022 reported figure.
TXT delivered a trailing four-quarter average earnings surprise of 14.13%.
Debt Position
The total debt-to-capital of TXT is 33.32%, better than 46.49% registered by the industry. This indicates that the company has less debt than its peers, which is a positive sign.
TXT has a current ratio of 1.88, better than the industry’s average of 1.16. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Strong Backlog and Innovation
The solid demand for Textron’s products resulted in a total backlog of $14.5 billion as of Sep 30, 2023, up from $13.3 billion as of Dec 31, 2022.
Textron has been continuously innovating products to expand its footprint in the aviation industry. In October 2023, it launched the newest Cessna Citation business jet, the Cessna Citation CJ3 Gen2, after the launch of the Cessna Citation Ascend aircraft in May 2023. Textron’s unit Bell is developing the V-280 Valor, a next-generation vertical lift aircraft and the new rotorcraft, the Bell 360 Invictus, for the U.S. Army.
Return on Equity (ROE)
ROE is a measure of a company’s financial performance and shows how it is utilizing its funds. TXT’s current ROE is 14.7%, better than the industry’s average of 9.64%, which indicates that the company is utilizing its funds more efficiently than its peers.
Price Performance
In the past year, TXT’s shares have rallied 10.7% against the industry’s 7.8% decline.
Image: Bigstock
Reasons to Add Textron (TXT) to Your Portfolio Right Now
Textron Inc. (TXT - Free Report) manufactures aircraft, automotive engine components and industrial tools. The company’s expanding product line, solid backlog and strong demand for products will continue to support its performance.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections & Surprise History
Textron’s long-term (three-to five-years) earnings growth is pegged at 11.7%.
The Zacks Consensus Estimate for TXT’s 2023 earnings per share (EPS) is pegged at $5.45. The bottom-line estimates have moved up 2.8% in the past 60 days.
The Zacks Consensus Estimate for 2023 sales stands at $13.76 billion, indicating growth of 6.9% from the 2022 reported figure.
TXT delivered a trailing four-quarter average earnings surprise of 14.13%.
Debt Position
The total debt-to-capital of TXT is 33.32%, better than 46.49% registered by the industry. This indicates that the company has less debt than its peers, which is a positive sign.
TXT has a current ratio of 1.88, better than the industry’s average of 1.16. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Strong Backlog and Innovation
The solid demand for Textron’s products resulted in a total backlog of $14.5 billion as of Sep 30, 2023, up from $13.3 billion as of Dec 31, 2022.
Textron has been continuously innovating products to expand its footprint in the aviation industry. In October 2023, it launched the newest Cessna Citation business jet, the Cessna Citation CJ3 Gen2, after the launch of the Cessna Citation Ascend aircraft in May 2023. Textron’s unit Bell is developing the V-280 Valor, a next-generation vertical lift aircraft and the new rotorcraft, the Bell 360 Invictus, for the U.S. Army.
Return on Equity (ROE)
ROE is a measure of a company’s financial performance and shows how it is utilizing its funds. TXT’s current ROE is 14.7%, better than the industry’s average of 9.64%, which indicates that the company is utilizing its funds more efficiently than its peers.
Price Performance
In the past year, TXT’s shares have rallied 10.7% against the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Leidos Holdings Inc. (LDOS - Free Report) , Virgin Galactic Holdings, Inc. (SPCE - Free Report) and TransDigm Group Inc. (TDG - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
LDOS boasts a long-term earnings growth rate of 8.1%. The Zacks Consensus Estimate for 2023 sales indicates year-over-year growth of 5.8%.
SPCE boasts a long-term earnings growth rate of 40.3%. The Zacks Consensus Estimate for 2023 sales indicates year-over-year growth of 171.9%.
TDG boasts a long-term earnings growth rate of 21.1%. The Zacks Consensus Estimate for 2023 sales indicates year-over-year growth of 15.6%.