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With a market cap of $14.3 billion, Textron Inc. (TXT) is a diversified global company known for its portfolio of innovative businesses that include aviation, defense, industrial, and specialized vehicles. Headquartered in Providence, Rhode Island, Textron operates through multiple segments: Textron Aviation, Bell, Textron Systems, Industrial, and Finance.
Companies valued at $10 billion or more are typically considered "large-cap stocks," and Textron is a prime example of this. Founded in 1923, Textron has a history of innovation and a global presence, delivering products and solutions to both government and commercial customers. The company emphasizes technology, customer service, and operational excellence to maintain its competitive edge in diverse industries.
Shares of TXT are trading 21.5% below their 52-week high of $97.33, which they hit on Apr. 8. The stock has declined 12% over the past three months, compared to the SPDR S&P Aerospace & Defense ETF (XAR), which has gained about 5.7% over the same time frame.
In the longer term, TXT has plunged 11.9% over the past six months, and the shares have fallen 5% over the past 52 weeks. In comparison, the XLR has surged 16.6% and 22.3% over the same time periods.
To confirm its bearish trend, TXT has recently been trading below its 200-day moving average since mid-October and under its 50-day moving average since early December.
Disruptions in the aviation segment from a labor strike, coupled with declining revenues and reduced operating profits in the industrial segment due to ongoing weakness in specialized vehicle markets, have been key drivers behind TXT’s sluggish price momentum recently.
On Oct. 24, TXT shares sank 6.2% after the company released disappointing Q3 earnings. Adjusted EPS came in at $1.40, missing the consensus estimate of $1.46, while revenue reached $3.43 billion, falling short of Wall Street’s forecast of $3.51 billion. Investor sentiment likely worsened as TXT lowered its full-year 2024 adjusted EPS guidance to $5.40–$5.60, citing the strike’s impact.
Compared to the broader industry performance, GE Aerospace (GE), a top rival of TXT, has surged 66.8% over the past 52 weeks, significantly outperforming TXT.
Despite TXT’s recent underperformance relative to the broader sector, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 13 analysts in coverage. The mean price target of $98.15 implies a premium of 28.4% to its current levels.
