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Textron Inc. (TXT), headquartered in Providence, Rhode Island, is a global leader in the aerospace, defense, and industrial sectors. With a market cap of $16.57 billion, Textron operates a diverse portfolio of brands, delivering innovative products and services across multiple industries, including aviation, defense, and specialized vehicles.
Companies valued at $10 billion or more are typically considered "large-cap stocks," and Textron is a prime example of this. Textron plays a pivotal role in driving innovation across these sectors, positioning itself as a key leader in the global manufacturing and engineering industries.
Shares of TXT are trading 11% below their 52-week high of $97.33, which they hit on Apr. 8. The stock has declined marginally over the past three months, lagging the Industrial Select Sector SPDR Fund’s (XLI) 9.4% gain over the same time frame.
In the longer term, TXT is up 7.8% on a YTD basis, and the shares have gained by 11.4% over the past 52 weeks. In comparison, the XLI has gained 18.1% in 2024 and rallied 32.2% over the past year.
To confirm its bearish trend, TXT has recently been trading below its 200-day moving average and its 50-day moving average since mid-September.
On Jul. 18, Textron reported its Q2 results. Its adjusted EPS of $1.54 beat the consensus estimates of $1.49. The company’s revenue of $3.53 billion fell short of Wall Street forecasts of $3.55 billion. TXT expects full-year adjusted EPS to be between $6.20 to $6.40 per share. TXT shares gained marginally on the day the results were released.
TXT has lagged behind its rival, Huntington Ingalls Industries, Inc. (HII), which gained 28% over the past 52 weeks.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 12 analysts in coverage. The mean price target is $103.25, suggesting a premium of 19.1% to its current levels.
On the date of publication, Rashmi Kumari 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.
