Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Textron as such a stock due to the following factors:
- TXT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.0 million.
- TXT has traded 12.7 million shares today.
- TXT is down 4% today.
- TXT was up 14.5% yesterday.
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More details on TXT:
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in five segments: Cessna, Bell, Textron Systems, Industrial, and Finance. The stock currently has a dividend yield of 0.2%. TXT has a PE ratio of 19.9. Currently there are 6 analysts that rate Textron a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Textron has been 2.2 million shares per day over the past 30 days. Textron has a market cap of $9.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.58 and a short float of 4.4% with 3.81 days to cover. Shares are up 31.4% year-to-date as of the close of trading on Thursday.
rates Textron as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, TXT's share price has jumped by 31.29%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The debt-to-equity ratio is somewhat low, currently at 0.92, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- TXT, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Aerospace & Defense industry and the overall market, TEXTRON INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Textron Ratings Report.