Reasons to Add Textron (TXT) Stock to Your Portfolio Now

Core Viewpoint - Textron Inc. (TXT) presents a strong investment opportunity in the Aerospace Defense sector, supported by a robust backlog and increasing earnings estimates [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for TXT's 2024 earnings per share (EPS) has risen by 8.66% to $6.27 per share over the past 60 days [2] - The total revenue estimate for Textron in 2024 is $14.64 billion, reflecting a year-over-year growth of 6.99% [2] - The company's earnings growth over the next three to five years is projected at 10.12%, with an average earnings surprise of 13.53% in the last four quarters [2] Return on Equity - Textron's return on equity (ROE) stands at 16.05%, significantly higher than the industry average of 10.51%, indicating more efficient use of funds compared to peers [3] Rising Backlog and Capital Expenditure - Textron's backlog reached $14 billion at the end of Q4 2023, with the Aviation segment contributing $7.2 billion, an increase of $782 million from the previous year [4] - The company plans a capital expenditure of $425 million for 2024, up 5.7% from $402 million in 2023 [4] Solvency and Liquidity Ratio - The times interest earned (TIE) ratio for Textron at the end of Q4 2023 was 15.1, indicating strong capability to meet interest obligations [5] - The current ratio was 1.92, suggesting the company can comfortably meet its short-term liabilities [5] Price Performance - Over the past three months, TXT shares have increased by 16.4%, contrasting with an average decline of 6.7% in the industry [6]