TXT Stock Analysis — Textron
Sector: Industrials
AI Verdict
Textron trades at 12.6x next year's earnings with nearly 19% growth expected, so the numbers say it's cheap for the growth on offer if its aviation and defense niches hold up.
Competitive Moat
Textron manufactures business jets, helicopters, and military vehicles, with a defensible position in niche aviation segments through its proprietary aircraft designs and established defense contracts. The company's breadth across both commercial and defense aviation creates switching costs for customers reliant on its integrated maintenance and support services.
Summary
Textron's forward P/E of 12.6x and RSI of 18.3 flag it as one of the most technically oversold industrials with double-digit earnings growth expected.
Where It Stands
Textron has a 1-year return of -2.92% and an RSI of 18.3, signaling extreme oversold territory, while its 12.6x forward P/E is a discount to the industrial sector median of 20x.
Key Metrics
- RSI: 18.3 — Oversold
- Trailing P/E: 14.9x
- Forward P/E: 12.6x
- PEG Ratio: 0.79
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $13.6B
- Dividend Yield: 0.00%
- 1-Year Return: -2.92%
- 52-Week High: $101.57
- 52-Week Low: $78.12
Analyst Consensus
11 Buy · 12 Hold · 0 Sell (23 analysts)
Bull Case
Analysts expect 18.8% EPS growth next year while you pay just 12.6x forward earnings, making it cheap for the growth you're getting.
Bear Case
If the P/E reverts further below 12x or RSI signals a dead-cat bounce, even a return to sector median valuation could mean little upside from here.
Catalyst to Watch
Watch for upcoming defense contract wins or business jet order announcements, as either could validate the 18.8% EPS growth expectation.