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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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) and an A for Value. The stock holds a P/E ratio of 12.73, while its industry has an average P/E of 29.51. Over the last 12 months, TXT's Forward P/E has been as high as 14.02 and as low as 9.69, with a median of 12.08.
Investors will also notice that TXT has a PEG ratio of 1.27. 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. TXT's PEG compares to its industry's average PEG of 1.87. TXT's PEG has been as high as 1.39 and as low as 0.97, with a median of 1.20, all within the past year.
We should also highlight that TXT has a P/B ratio of 2. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.82. TXT's P/B has been as high as 2.43 and as low as 1.51, with a median of 1.94, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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 1.03. This compares to its industry's average P/S of 2.93.
Finally, we should also recognize that TXT has a P/CF ratio of 12.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.77. 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.
These are just a handful of the figures considered in Textron's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TXT is an impressive value stock right now.
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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) and an A for Value. The stock holds a P/E ratio of 12.73, while its industry has an average P/E of 29.51. Over the last 12 months, TXT's Forward P/E has been as high as 14.02 and as low as 9.69, with a median of 12.08.
Investors will also notice that TXT has a PEG ratio of 1.27. 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. TXT's PEG compares to its industry's average PEG of 1.87. TXT's PEG has been as high as 1.39 and as low as 0.97, with a median of 1.20, all within the past year.
We should also highlight that TXT has a P/B ratio of 2. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.82. TXT's P/B has been as high as 2.43 and as low as 1.51, with a median of 1.94, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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 1.03. This compares to its industry's average P/S of 2.93.
Finally, we should also recognize that TXT has a P/CF ratio of 12.49. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.77. 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.
These are just a handful of the figures considered in Textron's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TXT is an impressive value stock right now.