November 30, 2023
Top 10 Stock Textron Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Textron Strong Buy

360 METRICS	November 30, 2023
VALUE
VALUE	59
GROWTH
GROWTH	73
SAFETY
SAFETY	76
SENTIMENT
SENTIMENT	96
360° VIEW
360° VIEW	94

ANALYSIS: With an Obermatt 360° View of 94 (better than 94% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Textron are very positive. The 360° View is based on consolidating four consolidated indicators, with all four indicators above average for Textron. The consolidated Value Rank has an attractive rank of 59, which means that the share price of Textron is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 59% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 73, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The company is also safely financed with a Safety rank of 76. Finally, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 96. ...read more

RECOMMENDATION: With a consolidated 360° View of 94, Textron is better positioned than 94% of all alternative stock investment opportunities based on the Obermatt Method. As all consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 59), above-average growth (Growth Rank of 73), safe financing practices (Safety Rank of 76), and a positive market sentiment in the professional investor community (Sentiment Rank of 96), it is a solid stock investment where the risk of paying too much for the shares is limited and disappointments are less likely to occur, unless information not publicly available. High-Value Ranks sometimes indicate that the company's future is challenging. If they are safely financed and have above average growth, and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Textron is as difficult as the stock’s low price, despite what good growth and safe financing practice suggest. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible, which may indicate good timing right now. ...read more

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Sentiment Strategy: Professional Market Sentiment for Textron very positive

SENTIMENT METRICS	November 30, 2023
ANALYST OPINION
ANALYST OPINION	45
OPINIONS CHANGE
OPINIONS CHANGE	93
PRO HOLDINGS
PRO HOLDINGS	96
MARKET PULSE
MARKET PULSE	95
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	96

ANALYSIS: With an Obermatt Sentiment Rank of 96 (better than 96% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Textron is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Textron. Analyst Opinions are at a rank of 45 (worse than 55% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 93, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Textron. Even better, the Professional Investors rank is 96, meaning that professional investors hold more stock in this company than in 96% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 95, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 95% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 96 (more positive than 96% compared with investment alternatives), Textron has a reputation among professional investors that is significantly higher than that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: Textron Stock Price Value better than average

VALUE METRICS	November 30, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	70
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	49
DIVIDEND YIELD
DIVIDEND YIELD	39
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	59

ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Textron shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Textron. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value concerning Textron's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 70% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 39 (dividends are expected to be higher than for 39% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 51% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Textron to 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Textron's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. ...read more

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Growth Strategy: Textron Growth Momentum good

GROWTH METRICS	November 30, 2023
REVENUE GROWTH
REVENUE GROWTH	53
PROFIT GROWTH
PROFIT GROWTH	70
CAPITAL GROWTH
CAPITAL GROWTH	67
STOCK RETURNS
STOCK RETURNS	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	73

ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Textron shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Textron. Sales Growth has a value of 53, which means that, currently, professionals expect the company to grow more than 53% of its competitors. The same is valid for Profit Growth with a value of 70 and for Capital Growth with 67. In addition, Stock Returns had an above-average rank value of 59, which means they have been higher than 59% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Textron exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. ...read more

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Safety Strategy: Textron Debt Financing Safety very solid

SAFETY METRICS	November 30, 2023
LEVERAGE
LEVERAGE	56
REFINANCING
REFINANCING	61
LIQUIDITY
LIQUIDITY	57
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76

ANALYSIS: With an Obermatt Safety Rank of 76 (better than 76% compared with alternatives) for 2023, the company Textron has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Textron is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Textron. Leverage is at 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors. Refinancing is at a rank of 61, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 61% of its competitors. Finally, Liquidity is also good at a rank of 57, which means that the company generates more profit to service its debt than 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 76 (better than 76% compared with alternatives), Textron has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Textron Top Financial Performance

COMBINED PERFORMANCE	November 30, 2023
VALUE
VALUE	59
GROWTH
GROWTH	73
SAFETY
SAFETY	57
COMBINED
COMBINED	90

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Textron (Aerospace & Defense, USA) shares have much better financial characteristics than comparable stocks. Shares of Textron are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), show above-average growth (Growth Rank of 73), and are safely financed (Safety Rank of 76), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Textron's financial characteristics. As the company Textron's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 59), above-average growth (Obermatt Growth Rank of 73), and indicate that the company is safely financed (Obermatt Safety Rank of 76), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Textron. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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