If You Invested $1000 in Textron a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Textron (TXT) ten years ago? It may not have been easy to hold on to TXT for all that time, but if you did, how much would your investment be worth today?
Textron's Business In-Depth
With that in mind, let's take a look at Textron's main business drivers.
Textron Inc., incorporated in 1923, is a global multi-industry company that manufactures aircraft, automotive engine components and industrial tools. It also offers solutions and services for aircraft, fastening systems, and industrial products and components. Its products include commercial and military helicopters, light- and mid-size business jets, plastic fuel tanks, automotive trim products, golf carts and utility vehicles, turf-car equipment, industrial pumps and gears, engineered fastening systems and solutions, and other industrial products. It is also a commercial finance company in select markets. Textron is known globally for its most recognizable and valuable brand names, such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, E-Z-GO and Greenlee.
Textron operates through five segments – Bell, Textron Systems, Textron Aviation, Industrial and Finance.
The Bell segment includes Bell Helicopter. Bell Helicopter primarily supplies helicopters and supports corporate and governmental entities. Segment revenues in 2022 were $3,091 million, contributing 24% to the top line.
The Textron Systems unit is a provider of integrated fastening systems solutions, which include fasteners, engineered assemblies and automation equipment. Segment revenues in 2022 were $1,172 million, contributing 9.1% to the top line.
Textron Aviation’s principal markets are general aviation aircraft, business jets and commercial transportation. Segment revenues in 2022 were $5,073 million, contributing 39.4% to the top line.
The Industrial segment manufactures and sells miscellaneous industrial products, such as golf carts, off- road utility vehicles, plastic fuel systems, and industrial pumps and gears. Segment revenues in 2022 were $3,465 million, accounting for 26.9% of the top line.
Textron Financial Corporation (TFC) is a commercial finance business with operations in aircraft finance, asset-based lending and structured finance. Segment revenues in 2022 were $16 million, constituting 0.1% of the top line.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Textron ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2013 would be worth $2,788.93, or a gain of 178.89%, as of August 10, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 164.14% and the price of gold went up 40.15% over the same time frame.
Analysts are forecasting more upside for TXT too.
Textron continues to enjoy strong order flows for its commercial and defense products across all its businesses. This, in turn, strengthens Textron’s revenue-generating capacity and expands its global footprint. The company expects a ramp-up of its commercial deliveries, which should further boost substantially its top line results. A solid product pipeline and introduction of new products is expected to boost the its future operating results significantly. It is innovating new products like Bell 360 Invictus to capture more shares in the defense market. Textron also boasts a solid solvency position in the short term. Its shares have outperformed its industry in the past year. Yet, its businesses continue to be hurt by supply-chain shortage. Cost increases due to sanctions imposed on Russian companies may impact its earnings.
The stock has jumped 14.03% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Textron Inc. (TXT) : Free Stock Analysis Report
