Investors with an interest in Aerospace - Defense stocks have likely encountered both Textron (TXT) and RTX (RTX). But which of these two companies is the best option for those looking for undervalued stocks?
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The headline numbers for Textron (TXT) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Textron Inc. (NYSE:TXT ) Q2 2025 Earnings Conference Call July 24, 2025 8:00 AM ET Company Participants David Rosenberg - Executive VP & CFO Scott C. Donnelly - Chairman, President & CEO Scott P.
Textron posts a Q2 earnings beat as revenues rise 5.4% Y/Y. The company reiterates its 2025 EPS estimate.
Textron (TXT) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.54 per share a year ago.
TXT's Q2 sales likely rose on strength in Aviation and Bell units, but higher costs are expected to weigh on earnings.
Beyond analysts' top-and-bottom-line estimates for Textron (TXT), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
Textron (TXT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Textron (TXT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Textron is undervalued versus peers, with stable defense cash flows and disciplined CapEx, supporting a Buy rating and a 9% potential upside to fair value. Defense (Bell) drives growth, offsetting civilian segment headwinds; operating margins remain strong, but overall growth lags more dynamic competitors. Financials are solid: manageable debt, robust buybacks, and a 6-7% FCF yield, though dividend yield is minimal and civilian demand is fragile.