Providence, Rhode Island-based Textron Inc. (TXT) operates in the aircraft, defense, industrial, and finance businesses. Valued at $15.3 billion by market cap, the company provides airplanes, helicopters, weapons, and automotive products. Textron's finance division offers asset-based lending, aviation, distribution, golf, and resort finance, as well as structured capital.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TXT definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the aerospace & defense industry. Textron’s diverse portfolio, including aviation, defense, and industrial segments, drives its market leadership. Its focus on innovation, particularly in electric aviation, enhances its competitive edge and aligns with the shift towards sustainability. This diversification mitigates risks and capitalizes on growth opportunities across sectors.
Despite its notable strength, TXT slipped 1.2% from its 52-week high of $87.94, achieved on Oct. 7. Over the past three months, TXT stock gained 5.6%, outperforming the Industrial Select Sector SPDR Fund’s (XLI) 3.2% gains during the same time frame.
In the longer term, shares of TXT rose 13.1% on a six-month basis, outperforming XLI’s six-month gains of 9.4%. However, the stock climbed 5.8% over the past 52 weeks, underperforming XLI’s 13.7% returns over the last year.
To confirm the bullish trend, TXT is trading above its 50-day moving average since late November, with a minor fluctuation. The stock has been trading above its 200-day moving average since late June, with slight fluctuations.
On Oct. 23, TXT shares closed down by 3.8% after reporting its Q3 results. Its adjusted EPS of $1.55 surpassed Wall Street expectations of $1.47. The company’s revenue was $3.6 billion, falling short of Wall Street forecasts of $3.7 billion. TXT expects full-year adjusted EPS in the range of $6 to $6.20.
TXT’s rival, Lockheed Martin Corporation (LMT), has lagged behind the stock, with 1.4% gains on a six-month basis and a 4.2% downtick over the past 52 weeks.
Wall Street analysts are reasonably bullish on TXT’s prospects. The stock has a consensus “Moderate Buy” rating from the 14 analysts covering it, and the mean price target of $91.83 suggests a potential upside of 5.7% from current price levels.
On the date of publication, Neha Panjwani 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. For more information please view the Barchart Disclosure Policy here.
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