3 Undervalued Aerospace & Defense Stocks for Wednesday, August 19
Discover the top 3 undervalued Aerospace & Defense stocks for Wednesday, August 19 based on AAII’s Stock Grades.Michael Rose
A+ Stock Grade Summary:
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COMPANY SUMMARY
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft, as well as offers maintenance, inspection, and repair services; commercial parts; and advanced flight training devices. The Bell segment supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks; plastic tanks for catalytic reduction systems and other fuel system components; lightweight and composite pentatonic battery systems for use in electric vehicles primarily to automobile original equipment manufacturers; and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.
Commentary & Analysis
Why Textron Inc.’s (TXT) Stock Is Down 7.44%
As of Tuesday, July 28, Textron Inc.’s TXT share price has dipped by 7.44%, which has investors questioning if this is right time to buy.Jenna Brashear
What You Need to Know About Textron Inc.'s Q3 Earnings
Textron Inc.'s fiscal Q3 earnings report was released on Tuesday, July 28. Let's dive in to see if (TXT) missed or beat analyst's expectations.Tudor Pop
Is Textron Inc. (TXT) Overvalued?
We dive into why Textron Inc. (TXT) could be considered overvalued on 2026-07-21, based on AAII’s Value Score and Grade.Jenna Brashear
3 Undervalued Aerospace & Defense Stocks for Monday, July 20
Discover the top 3 undervalued Aerospace & Defense stocks for Monday, July 20 based on AAII’s Stock Grades.Jenna Brashear
Financial Summary
| Share Statistics | TXT | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $13,930.9 | $4,296.7 | 82% |
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| Shares Out (Mil) | 175.0 | 85.3 | 74% |
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| Institutional Ownership | 99.3% | 91.8% | 86% |
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| Float (Mil) | 170.6 | 63.9 | 71% |
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| Beta | 0.91 | 0.96 | 55% |
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| Avg Daily Volume (000s) | 1,827 | 532 | 82% |
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| Price Change (52-week) |
-0.0% | 63.5% | 48% |
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| Growth | TXT | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 4.9% | 9.8% | 36% |
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| Net Income (5yr) | 24.4% | 17.4% | 79% |
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| EPS (5yr) | 30.5% | 17.1% | 82 |
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| Dividends (5yr) | 0.0% | 0.0% | 55% |
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| Cash Flow (5yr) | (3.6%) | 1.8% | 62% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 15 | 16 | 16 | |
| Current EPS | $1.518 | $6.457 | $7.263 | |
| Month Ago EPS | $1.518 | $6.454 | $7.230 | |
| # Rev Up | 0 | 1 | 1 | |
| # Rev Down | 1 | 0 | 0 | |
| Three Months Ago EPS | $1.656 | $6.512 | $7.297 | |
| Year/Year Chg | 6.9% | 26.1% | 56.3% | |
| Financials | TXT | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $15,299 | $942 | 88% |
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| Net Income (TTM) (Mil) | $937 | $37 | 85% |
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| EPS (TTM) | $5.344 | $0.500 | 87% |
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| Operating Cash Flow (TTM) (Mil) | $1,236 | $34 | 83% |
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| Net Cash Flow (TTM) (Mil) | $172 | $24 | 83% |
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| Long-Term Debt (Q1) (Mil) | $3,461 | $323 | 81% |
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| Enterprise Value (Q1) (Mil) | $17,506 | $4,325 | 82% |
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| Valuation | TXT | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.73 | 3.23 | 45% |
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| P/E | 15.2 | 37.8 | 38% |
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| Dividend Yield | 0.1% | 0.0% | 60% |
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| PEG (5yr hist) | 0.5 | 1.5 | 24% |
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| Ratios | TXT | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 17.6% | 27.4% | 17% |
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| Net Margin | 6.1% | 5.5% | 52% |
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| ROA | 5.3% | 3.1% | 73% |
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| ROE | 12.1% | 9.9% | 63% |
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| Liabilities to Assets | 55.6% | 51.7% | 48% |
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| F-Score | 8 | 4 | 93% |
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Passing Stock Screens
As of 9/11/2026, from a list of 60 stock screening strategies,
FACTOR STRATEGY
P/E Relative Screen
Factors: Value, Earnings Estimates
A screen that looks at the relationship of a stock's price-earnings ratio to that of the industry and market.
| Performance Since Inception: | 13.6% |
| +/- S&P 500: | +6.1 |
