Yahoo Finance Textron (TXT) Dips More Than Broader Markets: What You Should Know
Textron (TXT) closed at $63.29 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the maker of Cessna small planes and Bell helicopters had lost 3.17% in the past month. In that same time, the Aerospace sector lost 0.34%, while the S&P 500 gained 4.14%.
Wall Street will be looking for positivity from Textron as it approaches its next earnings report date. The company is expected to report EPS of $1.20, up 20% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.4 billion, up 7.76% from the year-ago period.
TXT's full-year Zacks Consensus Estimates are calling for earnings of $5.09 per share and revenue of $13.8 billion. These results would represent year-over-year changes of +26.93% and +7.24%, respectively.
Any recent changes to analyst estimates for Textron should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Textron is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Textron is holding a Forward P/E ratio of 12.59. This represents a discount compared to its industry's average Forward P/E of 15.87.
Also, we should mention that TXT has a PEG ratio of 1.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Textron Inc. (TXT) : Free Stock Analysis Report
