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

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 1.5%. By the end of trading, Textron rose $0.59 (2.2%) to $27.09 on average volume. Throughout the day, 2,554,238 shares of Textron exchanged hands as compared to its average daily volume of 3,001,800 shares. The stock ranged in a price between $26.62-$27.32 after having opened the day at $26.75 as compared to the previous trading day's close of $26.50. Other companies within the Aerospace/Defense industry that increased today were: Frontline ( FRO), up 27.8%, Embraer S.A ( ERJ), up 4.4%, GenCorp ( GY), up 4.4% and DigitalGlobe ( DGI), up 4.0%.
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Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in five segments: Cessna, Bell, Textron Systems, Industrial, and Finance. Textron has a market cap of $7.4 billion and is part of the industrial goods sector. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Textron a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Textron as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year, notable return on equity, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Erickson Air-Crane ( EAC), down 5.6% and Air Industries Group ( AIRI), down 2.5%.

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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