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Textron (TXT): Assessing Valuation After Recent Share Price Gains and Aviation Program Progress

Simply Wall St · 2d ago

Textron (TXT) has quietly been grinding higher, with the stock up around 10% over the past month and more than 15% this year, as investors warm to its diversified aviation and defense portfolio.

See our latest analysis for Textron.

That climb has been driven less by flashy headlines and more by steady execution in aviation and defense, with a roughly 9.5% 1 month share price return backing up a solid multi year total shareholder return profile. This suggests momentum is quietly building.

If Textron has you rethinking defense exposure, this is a good moment to scan other opportunities across aerospace and defense stocks that might fit a similar thesis with different risk reward trade offs.

With shares hovering near record highs, modestly below Wall Street targets but trading above historical averages, the key question now is simple: Is Textron still undervalued, or is future growth already fully priced in?

Most Popular Narrative: 5.5% Undervalued

Compared with Textron's last close at $87.44, the most followed valuation narrative points to modest upside potential, implying a slightly higher long term fair value.

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.

Read the complete narrative.

Want to see what powers that upside case? The narrative leans on rising margins, steady top line expansion, and a future earnings multiple that undercuts sector heavyweights. Curious how those moving parts add up to its fair value call?

Result: Fair Value of $92.57 (UNDERVALUED)

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

However, lingering concerns over cost management and weaker industrial demand could squeeze margins, which would challenge the bullish case if mix and volumes do not improve.

Find out about the key risks to this Textron narrative.

Build Your Own Textron Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just a few 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.