Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
Textron (
TXT) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.8%. By the end of trading, Textron rose 66 cents (2.5%) to $26.72 on average volume. Throughout the day, 2.7 million shares of Textron exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in a price between $26.20-$26.92 after having opened the day at $26.34 as compared to the previous trading day's close of $26.06. Other companies within the Aerospace/Defense industry that increased today were:
Esterline Technologies (
ESL), up 13%,
Edac Technologies Corporation (
EDAC), up 3.4%, and
Embraer S.A (
ERJ), up 3%.
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. Its Cessna segment manufactures business jets, single engine utility turboprops, single engine piston aircraft, lift solutions, and parts, as well as maintenance, inspection, and repair services. Textron has a market cap of $7.43 billion and is part of the
industrial goods sector. The company has a P/E ratio of 19, above the average aerospace/defense industry P/E ratio of 18.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 43.1% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Textron a buy, no analysts rate it a sell, and four rate it a hold.
TheStreet Ratings rates Textron as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the aerospace/defense industry could consider
iShares DJ US Aerospace & Def Idx (
ITA) while those bearish on the aerospace/defense industry could consider
ProShares Short Dow 30 (
DOG).
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