Textron Inc. TXT is a manufacturing titan in the aviation, automotive engine, and industrial tools space. The company’s robust product line, burgeoning backlog, and unwavering product demand paint a bright future for its performance.
Time to delve into the factors elevating this Zacks Rank #2 (Buy) stock into a solid investment opportunity at this moment.
Ascending Growth Projections & History of Positive Surprises
Textron anticipates a 11.7% long-term (three-to five-years) earnings growth. The Zacks Consensus Estimate for TXT’s 2023 earnings per share (EPS) stands at $5.45, showcasing a 2.8% uptick in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is tagged at $13.76 billion, signaling a 6.9% upsurge from the 2022 reported figure.
TXT has delivered a trailing four-quarter average earnings surprise of 14.13%.
Healthy Debt Position and Financial Standing
At 33.32%, TXT boasts a favorable total debt-to-capital ratio compared to the industry’s 46.49%. This indicates a lighter debt burden compared to its peers, a clear indicator of stability.
TXT is equipped with a current ratio of 1.88, surpassing the industry average of 1.16. This indicates a robust financial capability to settle its short-term debt obligations.
Robust Backlog and Innovations Taking Flight
Textron’s products are in high demand, leading to a total backlog of $14.5 billion as of Sep 30, 2023, a significant rise from $13.3 billion as of Dec 31, 2022.
Highlights include the launch of the Cessna Citation CJ3 Gen2 and the Cessna Citation Ascend aircraft, as well as the ongoing development of the V-280 Valor and Bell 360 Invictus, demonstrating a commitment to innovation.
Riveting Return on Equity (ROE)
At 14.7%, TXT’s current ROE surpasses the industry’s average of 9.64%, indicating a more efficient capital utilization compared to its peers.
Impressive Stock Performance
Over the past year, TXT’s shares have surged by 10.7% contrary to the industry’s 7.8% decline.
Image Source: Zacks Investment Research
Explore Other High-Potential Stocks
Apart from TXT, other top-ranked stocks within the aeronautics sector are Leidos Holdings Inc. LDOS, Virgin Galactic Holdings, Inc. SPCE, and TransDigm Group Inc. TDG, all currently holding a Zacks Rank #2.
LDOS flaunts a solid long-term earnings growth rate of 8.1%, whereas SPCE stands strong with an impressive 40.3%. Meanwhile, TDG boasts a remarkable 21.1% growth rate.
Zacks Reveals ChatGPT “Sleeper” Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other “must buys.” Plus more.
Download Free ChatGPT Stock Report Right Now >>
Textron Inc. (TXT) : Free Stock Analysis Report
TransDigm Group Incorporated (TDG) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report
Continue reading this article on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
