Textron (TXT) Valuation Check After Steady 10% Year-to-Date Share Price Gain

Textron (TXT) has quietly outperformed the broader market this year, and that steady climb has investors asking a simple question: does the current share price still leave meaningful upside on the table?

See our latest analysis for Textron.

With the share price now at $83.47 and a solid year to date share price return of just over 10 percent, Textron’s gains look more like a steady rerating as investors warm to its improving growth profile rather than a speculative spike. Multi year total shareholder returns reinforce that slow burn momentum.

If Textron’s climb has you rethinking the broader defense and aerospace space, it is a good moment to explore other aerospace and defense stocks that might be setting up for similar moves.

With earnings growing faster than revenue and the share price still sitting at a double digit discount to analyst targets and intrinsic value estimates, is Textron quietly offering a mispriced entry point, or is the market already baking in its next leg of growth?

Most Popular Narrative Narrative: 9.8% Undervalued

With Textron closing at $83.47 against a most popular narrative fair value near the low $90s, the story suggests modest but meaningful upside still in play.

The FAA certification of the GE Aerospace Catalyst turboprop engine for the Beechcraft Denali program is set to significantly boost revenue as the program progresses toward completion, offering a new product line with expected strong market demand. Bell's military and commercial segments are experiencing strong growth, driven by FLRAA program execution and recent new contracts for aircraft, which will positively impact revenue and potentially increase net margins through scale and efficiency improvements.

Read the complete narrative.

Curious how steady mid single digit growth, rising margins, aggressive buybacks and a lower future earnings multiple can still add up to upside? The full narrative explains the math behind that apparent contradiction and shows how those moving parts connect to today’s price and tomorrow’s potential.

Result: Fair Value of $92.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside depends on Textron managing costs and improving its aircraft mix, as weaker demand or renewed margin pressure could quickly undercut the thesis.

Find out about the key risks to this Textron narrative.

Build Your Own Textron Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a custom view in minutes, Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Textron.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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