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Textron (TXT) Stock Drops Despite Market Gains: Important Facts to Note
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The latest trading session saw Textron (TXT - Free Report) ending at $96.31, denoting a -0.69% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.15%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.32%.
Prior to today's trading, shares of the maker of Cessna small planes and Bell helicopters had gained 5.63% over the past month. This has outpaced the Aerospace sector's loss of 3.76% and the S&P 500's gain of 1.65% in that time.
Market participants will be closely following the financial results of Textron in its upcoming release. The company plans to announce its earnings on April 25, 2024. The company is forecasted to report an EPS of $1.33, showcasing a 26.67% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.38 billion, showing a 11.66% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.27 per share and revenue of $14.64 billion, which would represent changes of +12.16% and +6.99%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Textron. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Textron boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Textron is currently exchanging hands at a Forward P/E ratio of 15.47. For comparison, its industry has an average Forward P/E of 18.5, which means Textron is trading at a discount to the group.
Meanwhile, TXT's PEG ratio is currently 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Textron (TXT) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Textron (TXT - Free Report) ending at $96.31, denoting a -0.69% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.15%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.32%.
Prior to today's trading, shares of the maker of Cessna small planes and Bell helicopters had gained 5.63% over the past month. This has outpaced the Aerospace sector's loss of 3.76% and the S&P 500's gain of 1.65% in that time.
Market participants will be closely following the financial results of Textron in its upcoming release. The company plans to announce its earnings on April 25, 2024. The company is forecasted to report an EPS of $1.33, showcasing a 26.67% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.38 billion, showing a 11.66% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.27 per share and revenue of $14.64 billion, which would represent changes of +12.16% and +6.99%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Textron. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Textron boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Textron is currently exchanging hands at a Forward P/E ratio of 15.47. For comparison, its industry has an average Forward P/E of 18.5, which means Textron is trading at a discount to the group.
Meanwhile, TXT's PEG ratio is currently 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.