Textron Inc (TXT): Today's Featured Aerospace/Defense Laggard

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 lower today making it today's featured Aerospace/Defense laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Textron fell 42 cents (-1.8%) to $23.49 on average volume. Throughout the day, 3.2 million shares of Textron exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $23.42-$23.95 after having opened the day at $23.88 as compared to the previous trading day's close of $23.91. Other companies within the Aerospace/Defense industry that declined today were: Sifco Industries ( SIF), down 4.3%, Aerovironment Incorporated ( AVAV), down 2.7%, Sturm Ruger & Company ( RGR), down 2%, and Heico Corporation ( HEI), down 1.8%.
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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 $6.72 billion and is part of the industrial goods sector. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 28.9% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate Textron a buy, no analysts rate it a sell, and three 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, growth in earnings per share, increase in net income, solid stock price performance and notable return on equity. 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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