Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Textron (TXT) stock, we need to analyze both technical and fundamental factors.

Recent News and Event Impact:

Textron recently received positive news regarding its Ripsaw M3 program winning the U.S. Army's Robotic Combat Vehicle competition. This has led to a 2.3% increase in stock price. The official announcement is expected later this month, which could further impact the stock price.

Technical Analysis:

The stock is currently trading at $74.94 with a mixed technical outlook. The RSI_6 is at 65.03, indicating a neutral position, while the MACD is slightly negative, suggesting bearish momentum. The Fibonacci resistance levels are at $76.24 and $77.88, which could act as hurdles for the stock price.

Valuation Analysis:

Textron's valuation metrics show a P/E ratio of 22.5, which is reasonable compared to industry peers. The EV/EBITDA is 12.3, indicating moderate valuation. The price-to-book ratio is 2.5, showing that investors are paying a premium, but not excessively.

Analyst Sentiment:

The consensus rating for Textron is a Moderate Buy, with a mean price target of $90.36, representing a 20% upside from current levels. Recent analyst actions include downgrades from B of A Securities and Morgan Stanley, but Baird and Citigroup maintain a Buy rating.

Fundamental Analysis:

Textron's Q4 results were mixed, with revenues missing expectations but adjusted EPS in line with consensus. The company faces challenges in its Aviation and Industrial segments but expects revenue growth in 2025 driven by new product development and improved productivity.

Conclusion:

Given the positive news from the RCV competition win and the mixed technical indicators, it’s advisable to hold TXT stock. Investors should monitor the official announcement and the company's execution on new contracts. The stock has potential upside, but it’s wise to wait for further confirmation of an uptrend before considering a buy.

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Textron (TXT) stock is expected to reach $78 - $82 in 2025, driven by its recent win in the U.S. Army's Robotic Combat Vehicle competition and positive analyst price targets. However, risks include mixed analyst sentiment and potential revenue challenges.

The S1 support level for TXT Stock is $70.83 ,The R1 resistant level for TXT Stock is $76.15.

As of the end of day on 2025-03-14, the price of TXT Stock was $73.19.

The target price for TXT Stock according to analyst rating is 92.45, with the highest price target at 111.00 and the lowest at 82.00. Analysts have a Moderate Buy rating on TXT Stock overall.

The market cap of TXT is $13.3B.

Analysis and Insights

Valuation Metrics:

Textron's valuation metrics suggest potential overvaluation compared to industry peers. The stock's price-to-earnings (P/E) ratio is elevated, indicating a premium relative to its earnings performance. Additionally, the EV/EBITDA ratio is higher than the industry average, further signaling a rich valuation. While the price-to-sales (PS) ratio is moderate, the price-to-book (PB) ratio reflects a significant premium, suggesting investors are paying more for the company's assets than their book value.

Recent News Impact:

The recent 2.3% stock price increase following the U.S. Army's selection of Textron's Ripsaw M3 for the Robotic Combat Vehicle program indicates positive market sentiment. This win highlights Textron's strength in defense technology and could lead to future revenue growth. However, the stock's reaction may have already priced in this positive news, potentially limiting further upside.

Analyst Sentiment:

Analyst opinions are mixed, with some firms downgrading the stock and others maintaining a buy rating. Morgan Stanley lowered its price target, citing lower earnings estimates, while Citigroup remains optimistic about future revenue streams. The mixed sentiment suggests uncertainty about Textron's ability to meet growth expectations.

Conclusion:

Textron appears overvalued based on its current valuation metrics and mixed analyst sentiment. While the Ripsaw M3 contract win is positive, the stock's price may have already factored in this news, leaving limited upside potential. Investors should consider waiting for a price correction or further evidence of sustained growth before entering.

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Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with various solutions and services. The Company's segments include Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. Textron Aviation segment manufactures, sells and services Cessna and Beechcraft aircraft, and services the Hawker brand of business jets. Bell segment supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services in the world. Textron Systems segment offers electronic systems and solutions, advanced marine craft, piston aircraft engines, and others. Industrial segment designs and manufactures a variety of products within the Kautex and Specialized Vehicles product lines. Textron eAviation segment includes Pipistrel, a manufacturer of light aircraft, along with other research and development initiatives related to sustainable aviation solutions.

Based on current trends and the company's strategic positioning in the defense sector, Textron (TXT) is expected to reach a stock price of $115 by 2030. This prediction is supported by its recent contract wins, such as the U.S. Army's Robotic Combat Vehicle competition, and its strong foothold in innovative military technologies.

TXT has a total of 35000 employees.