Are Aerospace Stocks Lagging Textron (TXT) This Year?
For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Textron (TXT) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.
Textron is a member of the Aerospace sector. This group includes 48 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Textron is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for TXT's full-year earnings has moved 4.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that TXT has returned about 5.6% since the start of the calendar year. Meanwhile, the Aerospace sector has returned an average of -7.2% on a year-to-date basis. This shows that Textron is outperforming its peers so far this year.
One other Aerospace stock that has outperformed the sector so far this year is VirTra, Inc. (VTSI). The stock is up 47.7% year-to-date.
In VirTra, Inc.'s case, the consensus EPS estimate for the current year increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Textron belongs to the Aerospace - Defense industry, which includes 25 individual stocks and currently sits at #96 in the Zacks Industry Rank. This group has lost an average of 9.9% so far this year, so TXT is performing better in this area.
On the other hand, VirTra, Inc. belongs to the Electronics - Military industry. This 1-stock industry is currently ranked #5. The industry has moved +47.7% year to date.
Going forward, investors interested in Aerospace stocks should continue to pay close attention to Textron and VirTra, Inc. as they could maintain their solid performance.
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Textron Inc. (TXT) : Free Stock Analysis Report
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