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TXT vs. LHX: Which Stock Should Value Investors Buy Now?
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Investors interested in Aerospace - Defense stocks are likely familiar with Textron (TXT - Free Report) and L3Harris (LHX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Textron has a Zacks Rank of #1 (Strong Buy), while L3Harris has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TXT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TXT currently has a forward P/E ratio of 14.60, while LHX has a forward P/E of 17.14. We also note that TXT has a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LHX currently has a PEG ratio of 6.64.
Another notable valuation metric for TXT is its P/B ratio of 2.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LHX has a P/B of 2.16.
Based on these metrics and many more, TXT holds a Value grade of B, while LHX has a Value grade of C.
TXT stands above LHX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TXT is the superior value option right now.
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TXT vs. LHX: Which Stock Should Value Investors Buy Now?
Investors interested in Aerospace - Defense stocks are likely familiar with Textron (TXT - Free Report) and L3Harris (LHX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Textron has a Zacks Rank of #1 (Strong Buy), while L3Harris has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TXT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TXT currently has a forward P/E ratio of 14.60, while LHX has a forward P/E of 17.14. We also note that TXT has a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LHX currently has a PEG ratio of 6.64.
Another notable valuation metric for TXT is its P/B ratio of 2.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LHX has a P/B of 2.16.
Based on these metrics and many more, TXT holds a Value grade of B, while LHX has a Value grade of C.
TXT stands above LHX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TXT is the superior value option right now.