Textron Inc. (TXT) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Textron (TXT) has shown strong stock performance, with a 3.8% increase over the past month and a 10.8% gain since the start of the year, outperforming the Zacks Aerospace sector and the Aerospace - Defense industry [1][2]. Financial Performance - Textron reported an EPS of $1.6 in its last earnings report, exceeding the consensus estimate of $1.53, although it missed the revenue estimate by 0.65% [2]. - For the current fiscal year, Textron is projected to achieve earnings of $6.15 per share on revenues of $14.64 billion, reflecting a 10.02% increase in EPS and a 7% increase in revenues [2]. - The next fiscal year forecasts earnings of $6.99 per share on $15.6 billion in revenues, indicating a year-over-year change of 13.63% in EPS and 6.57% in revenues [2]. Valuation Metrics - Textron's current valuation metrics show it trading at 14.5X current fiscal year EPS estimates, below the peer industry average of 17.8X [4]. - On a trailing cash flow basis, Textron trades at 11.5X compared to the peer group's average of 12.3X, with a PEG ratio of 1.23 [4]. Zacks Rank - Textron holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [5]. Industry Comparison - The Aerospace - Defense industry is performing well, ranking in the top 35% of all industries, providing favorable conditions for both Textron and its peer, Leidos Holdings, Inc. (LDOS) [6]. - Leidos Holdings, Inc. has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, beating consensus estimates by 15.03% [6].