How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Textron (
TXT Quick Quote TXT - Free Report) ten years ago? It may not have been easy to hold on to TXT for all that time, but if you did, how much would your investment be worth today? Textron's Business In-Depth
With that in mind, let's take a look at Textron's main business drivers.
Textron Inc., incorporated in 1923, is a global multi-industry company that manufactures aircraft, automotive engine components and industrial tools. It also offers solutions and services for aircraft, fastening systems, and industrial products and components. Its products include commercial and military helicopters, light- and mid-size business jets, plastic fuel tanks, automotive trim products, golf carts and utility vehicles, turf-car equipment, industrial pumps and gears, engineered fastening systems and solutions, and other industrial products. It is also a commercial finance company in select markets. Textron is known globally for its most recognizable and valuable brand names, such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, E-Z-GO and Greenlee.
Textron operates through five segments – Bell, Textron Systems, Textron Aviation, Industrial and Finance. The Bell segment includes Bell Helicopter. Bell Helicopter primarily supplies helicopters and supports corporate and governmental entities. Segment revenues in 2020 were $3,309 million, representing 28.4% of the top line. The Textron Systems unit is a provider of integrated fastening systems solutions, which include fasteners, engineered assemblies and automation equipment. Segment revenues in 2020 were $1,313 million, contributing 11.3% to the top line. Textron Aviation’s principal markets are general aviation aircraft, business jets and commercial transportation. Segment revenues in 2020 were $3,974 million, contributing 34.1% to the top line. The Industrial segment manufactures and sells miscellaneous industrial products, such as golf carts, off- road utility vehicles, plastic fuel systems, and industrial pumps and gears. Segment revenues in 2020 were $3,000 million, accounting for 25.7% of the top line. Textron Financial Corporation (TFC) is a commercial finance business with operations in aircraft finance, asset-based lending and structured finance. Segment revenues in 2020 were $55 million, constituting 0.5% of the top line. Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Textron a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2011 would be worth $4,604.31, or a 360.43% gain, as of August 25, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 280.96% and the price of gold went up -2.15% over the same time frame.
Analysts are forecasting more upside for TXT too.
Textron continues to enjoy strong order flows, which not only strengthen its revenue generating capacity but also expand its footprint across the world. The company has been innovating products to capture further market share. To this end, in the first quarter, certification program for its Cessna SkyCourier aircraft continued to progress well, as the company remains on track for this jet to enter in service in the second half of 2021. It boasts impressive financial ratios, which further reflect its solid financial position and may boost investor confidence in this stock. Its shares have outperformed its industry in the past year. However, consistently poor air travel trend and dismal outlook for the same are expected to hurt Textron’s aftermarket volume. This in turn makes us skeptical about Textron Aviation’s performance.
Over the past four weeks, shares have rallied 5.75%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.