Is Textron Stock a Good Investment?

Textron Investment Advice

  TXT
To provide specific investment advice or recommendations on Textron stock, we recommend investors consider the following general factors when evaluating Textron. This will help you to make an informed decision on whether to include Textron in one of your diversified portfolios:
  • Examine Textron's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Textron's leadership team and their track record. Good management can help Textron navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact Textron's business and its evolving consumer preferences.
  • Compare Textron's performance and market position to its competitors. Analyze how Textron is positioned in terms of product offerings, innovation, and market share.
  • Check if Textron pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Textron's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Textron stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Textron is a good investment.
 
Sell
 
Buy
Buy
Macroaxis provides recommendation on Textron to complement and cross-verify current analyst consensus on Textron. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Textron is not overpriced, please validate all Textron fundamentals, including its ebitda, current ratio, target price, as well as the relationship between the cash per share and short ratio . Given that Textron has a price to earning of 37.87 X, we advise you to double-check Textron market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails

Examine Textron Stock

Researching Textron's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 86.0% of the company shares are owned by institutional investors. The book value of Textron was at this time reported as 36.54. The company has Price/Earnings To Growth (PEG) ratio of 0.88. Textron last dividend was issued on the 13th of September 2024. The entity had 2:1 split on the 27th of August 2007.
To determine if Textron is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Textron's research are outlined below:
Textron generated a negative expected return over the last 90 days
Over 86.0% of the company shares are owned by institutional investors
On 1st of October 2024 Textron paid $ 0.02 per share dividend to its current shareholders
Latest headline from bizjournals.com: Textron Aviation Defense wins 21.8M contract for more Thailand work

Textron Quarterly Good Will

2.29 Billion

Textron uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Textron. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Textron's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
25th of April 2024
Upcoming Quarterly Report
View
25th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
22nd of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Textron's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Textron's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2004-04-22
2004-03-310.250.280.0312 
2004-10-21
2004-09-300.380.420.0410 
2014-07-16
2014-06-300.460.510.0510 
2013-04-17
2013-03-310.450.4-0.0511 
2011-07-20
2011-06-300.240.290.0520 
2010-10-20
2010-09-300.080.130.0562 
2009-01-29
2008-12-310.350.40.0514 
2003-07-17
2003-06-300.330.380.0515 

Textron Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Textron target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Textron's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   16  Buy
Most Textron analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Textron stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Textron, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Textron Target Price Projection

Textron's current and average target prices are 84.99 and 85.27, respectively. The current price of Textron is the price at which Textron is currently trading. On the other hand, Textron's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Textron Market Quote on 9th of October 2024

Low Price84.31Odds
High Price86.52Odds

84.99

Target Price

Analyst Consensus On Textron Target Price

Low Estimate77.6Odds
High Estimate94.65Odds

85.27

Historical Lowest Forecast  77.6 Target Price  85.27 Highest Forecast  94.65
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Textron and the information provided on this page.

Textron Analyst Ratings

Textron's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Textron stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Textron's financials, market performance, and future outlook by experienced professionals. Textron's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Textron's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Textron is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Textron backward and forwards among themselves. Textron's institutional investor refers to the entity that pools money to purchase Textron's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
T. Rowe Price Associates, Inc.2024-06-30
3.3 M
Dimensional Fund Advisors, Inc.2024-06-30
2.8 M
Morgan Stanley - Brokerage Accounts2024-06-30
2.5 M
Fmr Inc2024-06-30
2.3 M
Charles Schwab Investment Management Inc2024-06-30
1.7 M
Northern Trust Corp2024-06-30
1.7 M
Brandes Investment Partners & Co2024-06-30
1.5 M
Gamco Investors, Inc. Et Al2024-06-30
1.5 M
Aqr Capital Management Llc2024-06-30
1.5 M
Vanguard Group Inc2024-06-30
21.8 M
Blackrock Inc2024-06-30
15.6 M
Note, although Textron's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Textron's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 15.92 B.

Market Cap

4.32 Billion

Textron's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.06  0.03 
Return On Capital Employed 0.10  0.11 
Return On Assets 0.05  0.03 
Return On Equity 0.11  0.10 
The company has Net Profit Margin of 0.07 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.1 %, which entails that for every 100 dollars of revenue, it generated $0.1 of operating income.
Determining Textron's profitability involves analyzing its financial statements and using various financial metrics to determine if Textron is a good buy. For example, gross profit margin measures Textron's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Textron's profitability and make more informed investment decisions.

Textron's Earnings Breakdown by Geography

Please note, the imprecision that can be found in Textron's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Textron. Check Textron's Beneish M Score to see the likelihood of Textron's management manipulating its earnings.

Evaluate Textron's management efficiency

Textron has Return on Asset of 0.0497 % which means that on every $100 spent on assets, it made $0.0497 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1338 %, implying that it generated $0.1338 on every 100 dollars invested. Textron's management efficiency ratios could be used to measure how well Textron manages its routine affairs as well as how well it operates its assets and liabilities. Return On Capital Employed is likely to gain to 0.11 in 2024, whereas Return On Tangible Assets are likely to drop 0.03 in 2024. At this time, Textron's Liabilities And Stockholders Equity is comparatively stable compared to the past year. Non Current Liabilities Total is likely to gain to about 6.9 B in 2024, whereas Total Current Liabilities is likely to drop slightly above 3.3 B in 2024.
Last ReportedProjected for Next Year
Book Value Per Share 30.08  31.59 
Tangible Book Value Per Share 20.43  21.45 
Enterprise Value Over EBITDA 9.64  5.52 
Price Book Value Ratio 1.91  1.74 
Enterprise Value Multiple 9.64  5.52 
Price Fair Value 1.91  1.74 
Enterprise Value11.4 B9.4 B
The analysis of Textron's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Textron's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Textron Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0009
Forward Dividend Yield
0.0009
Forward Dividend Rate
0.08
Beta
1.229

Basic technical analysis of Textron Stock

As of the 9th of October, Textron has the Coefficient Of Variation of (26,347), risk adjusted performance of 0.001, and Variance of 1.95. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Textron, as well as the relationship between them.

Textron's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Textron insiders, such as employees or executives, is commonly permitted as long as it does not rely on Textron's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Textron insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Textron's Outstanding Corporate Bonds

Textron issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Textron uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Textron bonds can be classified according to their maturity, which is the date when Textron has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Textron's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Textron's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Textron's intraday indicators

Textron intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Textron stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Textron Corporate Filings

F4
1st of October 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
8K
24th of September 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
10Q
30th of July 2024
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
24th of June 2024
Other Reports
ViewVerify
Textron time-series forecasting models is one of many Textron's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Textron's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Textron Stock media impact

Far too much social signal, news, headlines, and media speculation about Textron that are available to investors today. That information is available publicly through Textron media outlets and privately through word of mouth or via Textron internal channels. However, regardless of the origin, that massive amount of Textron data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Textron news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Textron relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Textron's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Textron alpha.

Textron Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Textron can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Textron Historical Investor Sentiment

Investor biases related to Textron's public news can be used to forecast risks associated with an investment in Textron. The trend in average sentiment can be used to explain how an investor holding Textron can time the market purely based on public headlines and social activities around Textron. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Textron's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Textron and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Textron news discussions. The higher the estimate score, the more favorable the investor's outlook on Textron.

Textron Corporate Directors

Kathleen BaderIndependent DirectorProfile
James ConwayIndependent DirectorProfile
Deborah JamesIndependent DirectorProfile
R ClarkLead Independent DirectorProfile

Additional Tools for Textron Stock Analysis

When running Textron's price analysis, check to measure Textron's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Textron is operating at the current time. Most of Textron's value examination focuses on studying past and present price action to predict the probability of Textron's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Textron's price. Additionally, you may evaluate how the addition of Textron to your portfolios can decrease your overall portfolio volatility.