Back to top

Analyst Blog

Zacks Equity Research

Textron (TXT) Scales 52-Week High on Growth Initiatives

NOC GD TXT EGL

Trades from $3

Shares of Textron Inc. (TXT - Free Report) scaled a new 52-week high of $45.95 on Nov. 25.

Over the past 52 weeks, Textron’s shares have gained about 7.7%, ranging from a low of $30.69 on Feb 11, 2016 to a high of $45.95 on Nov 25, 2016. The average volume of shares traded over the last three months is approximately 1.3 million.

What’s Driving the Stock?

Textron’s top line is being driven by a broad portfolio of products and services that help to keep the overall growth momentum steady. Also, its broad portfolio and widespread customer base enable it to generate revenues from diverse sources.

Textron is investing in product development and acquisitions. During the third quarter, the company introduced a new line of the Cushman Hauler utility vehicles. The company also unveiled Cessna Denali, its new clean sheets single-engine pressurized turboprop.

TEXTRON INC Price and Consensus

TEXTRON INC Price and Consensus | TEXTRON INC Quote

Management expects Cessna Denali to act as a growth catalyst for Textron’s aviation business.

In the first half of 2016, Textron acquired Airborne Tactical Advantage Company (ATAC). ATAC has bright prospects ahead and will help Textron clinch more contracts from the U.S. Department of Defense (“DoD”) and foreign militaries for providing live airborne threat training services. The transaction will contribute to overall growth in revenues, earnings and cash throughout the year.

However, despite touching the latest 52-week high mark, the company’s share price has underperformed the Zacks Categorized Aerospace/Defense industry return of 9.9% in the last 12 months. The soft performance of its Bell segment has had an adverse impact on the overall results.

Zacks Rank & Key Picks

Textron currently has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Aerospace sector include Northrop Grumman Corp. (NOC - Free Report) , Engility Holdings, Inc. (EGL - Free Report) and General Dynamics Corp. (GD - Free Report) .

Northrop delivered an average positive earnings surprise of 8.29% in the trailing four quarters.The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Engility, another Zacks Rank #1 stock, recorded an average positive earnings surprise of 23.19% in the trailing four quarters.

General Dynamics recorded an average positive earnings surprise of 5.55% in the trailing four quarters. The company carries a Zacks Rank #2.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

NORTHROP GRUMMN (NOC) - free report >>

GENL DYNAMICS (GD) - free report >>

TEXTRON INC (TXT) - free report >>

ENGILITY HLDGS (EGL) - free report >>