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Why Textron (TXT) is a Top Value Stock for the Long-Term

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Textron (TXT)

Textron Inc., incorporated in 1923, is a global multi-industry company that manufactures aircraft, automotive engine components and industrial tools. It also offers solutions and services for aircraft, fastening systems, and industrial products and components. Its products include commercial and military helicopters, light- and mid-size business jets, plastic fuel tanks, automotive trim products, golf carts and utility vehicles, turf-car equipment, industrial pumps and gears. It is a commercial finance company in select markets. Textron is known globally for its most recognizable and valuable brand names, such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, E-Z-GO and Greenlee.

TXT is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 13.9X for the current fiscal year compared to the Aerospace - Defense industry's P/E of 17.3X. Additionally, TXT has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 11X. Value investors should also note TXT's Price/Sales ratio of 1.2X.

Many value investors pay close attention to a company's earnings as well. For TXT, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.35 to $6.13 per share for 2024. Per share TXT boasts an average earnings surprise of 13.5%.

Investors should take the time to consider TXT for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Textron Inc. (TXT) : Free Stock Analysis Report

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