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TXT vs. RTX: Which Stock Should Value Investors Buy Now?
ZACKSยท2025-10-15 16:41

Core Insights - Investors are evaluating Textron (TXT) and RTX (RTX) for potential undervalued stock opportunities in the Aerospace - Defense sector [1] Valuation Metrics - Textron has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while RTX has a Zacks Rank of 3 (Hold) [3] - TXT's forward P/E ratio is 13.63, significantly lower than RTX's forward P/E of 26.83, suggesting TXT may be undervalued [5] - The PEG ratio for TXT is 1.36, compared to RTX's PEG ratio of 2.96, indicating better expected earnings growth relative to its price [5] - TXT's P/B ratio is 2.01, while RTX's P/B ratio is 3.32, further supporting the argument that TXT is a more attractive value option [6] - Overall, TXT has a Value grade of A, while RTX has a Value grade of C, highlighting TXT's superior valuation metrics [6]