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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Textron (TXT - Free Report) is a stock many investors are watching right now. TXT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.13 right now. For comparison, its industry sports an average P/E of 27.48. TXT's Forward P/E has been as high as 14.02 and as low as 9.69, with a median of 12.08, all within the past year.
Investors should also note that TXT holds a PEG ratio of 1.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TXT's PEG compares to its industry's average PEG of 1.98. Within the past year, TXT's PEG has been as high as 1.39 and as low as 0.97, with a median of 1.20.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TXT has a P/S ratio of 1. This compares to its industry's average P/S of 2.29.
Finally, investors will want to recognize that TXT has a P/CF ratio of 11.79. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TXT's current P/CF looks attractive when compared to its industry's average P/CF of 33.21. TXT's P/CF has been as high as 13.51 and as low as 9.17, with a median of 11.77, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Textron is likely undervalued currently. And when considering the strength of its earnings outlook, TXT sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Textron (TXT) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Textron (TXT - Free Report) is a stock many investors are watching right now. TXT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.13 right now. For comparison, its industry sports an average P/E of 27.48. TXT's Forward P/E has been as high as 14.02 and as low as 9.69, with a median of 12.08, all within the past year.
Investors should also note that TXT holds a PEG ratio of 1.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TXT's PEG compares to its industry's average PEG of 1.98. Within the past year, TXT's PEG has been as high as 1.39 and as low as 0.97, with a median of 1.20.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TXT has a P/S ratio of 1. This compares to its industry's average P/S of 2.29.
Finally, investors will want to recognize that TXT has a P/CF ratio of 11.79. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TXT's current P/CF looks attractive when compared to its industry's average P/CF of 33.21. TXT's P/CF has been as high as 13.51 and as low as 9.17, with a median of 11.77, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Textron is likely undervalued currently. And when considering the strength of its earnings outlook, TXT sticks out as one of the market's strongest value stocks.