We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Add Textron (TXT) to Your Portfolio Right Now
Read MoreHide Full Article
Textron Inc. (TXT - Free Report) is an aerospace defense company that manufactures aircraft, automotive engine components and industrial tools. The company’s stable financial position and well-diversified product portfolio make it a strong candidate for investment in the defense space.
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-year) earnings growth expectation is 11.7%.
The Zacks Consensus Estimate for TXT’s 2023 earnings per share (EPS) is pegged at $5.48. The bottom-line estimates have moved up 3.4% in the past 90 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $13.7 billion, indicating growth of 6.4% 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 46.78% 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 1.12. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Strong Backlog and Innovations
The solid demand for Textron’s products resulted in a total backlog of $14.53 billion at the end of third-quarter 2023.
Textron has been continuously innovating products to expand its footprint in the aerospace market. During third-quarter 2023, Textron Aviation launched the newest Cessna Citation business jet, the Cessna Citation CJ3 Gen2. Bell is also developing a new rotorcraft, the Bell 360 Invictus, for the U.S. Army's Future Attack Reconnaissance Aircraft Competitive Prototype Program.
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 10.55%, 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 14.5% against the industry’s average decline of 7.1%.
SPCE boasts a long-term earnings growth rate of 40.3%. The Zacks Consensus Estimate for 2023 sales is pegged at $6.75 million, implying an improvement of 192.1% from the 2022 reported figure.
LDOS boasts a long-term earnings growth rate of 8.1%. The Zacks Consensus Estimate for 2023 sales is pegged at $15.25 billion, implying a year-over-year improvement of 5.9%.
TDG boasts a long-term earnings growth rate of 16.3%. The Zacks Consensus Estimate for fiscal 2024 sales is pegged at $7.59 billion, implying a year-over-year improvement of 15.2% from the fiscal 2023 reported figure.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Reasons to Add Textron (TXT) to Your Portfolio Right Now
Textron Inc. (TXT - Free Report) is an aerospace defense company that manufactures aircraft, automotive engine components and industrial tools. The company’s stable financial position and well-diversified product portfolio make it a strong candidate for investment in the defense space.
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-year) earnings growth expectation is 11.7%.
The Zacks Consensus Estimate for TXT’s 2023 earnings per share (EPS) is pegged at $5.48. The bottom-line estimates have moved up 3.4% in the past 90 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $13.7 billion, indicating growth of 6.4% 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 46.78% 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 1.12. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Strong Backlog and Innovations
The solid demand for Textron’s products resulted in a total backlog of $14.53 billion at the end of third-quarter 2023.
Textron has been continuously innovating products to expand its footprint in the aerospace market. During third-quarter 2023, Textron Aviation launched the newest Cessna Citation business jet, the Cessna Citation CJ3 Gen2. Bell is also developing a new rotorcraft, the Bell 360 Invictus, for the U.S. Army's Future Attack Reconnaissance Aircraft Competitive Prototype Program.
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 10.55%, 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 14.5% against the industry’s average decline of 7.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Virgin Galactic Holdings Inc. (SPCE - Free Report) , Leidos Holdings Inc. (LDOS - Free Report) and TransDigm Group Inc. (TDG - Free Report) . Each stock carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
SPCE boasts a long-term earnings growth rate of 40.3%. The Zacks Consensus Estimate for 2023 sales is pegged at $6.75 million, implying an improvement of 192.1% from the 2022 reported figure.
LDOS boasts a long-term earnings growth rate of 8.1%. The Zacks Consensus Estimate for 2023 sales is pegged at $15.25 billion, implying a year-over-year improvement of 5.9%.
TDG boasts a long-term earnings growth rate of 16.3%. The Zacks Consensus Estimate for fiscal 2024 sales is pegged at $7.59 billion, implying a year-over-year improvement of 15.2% from the fiscal 2023 reported figure.