Aerospace and defense contractor Textron consistently puts up strong profit and sales growth numbers. Its stock is keeping pace and rose to an all-time high earlier this month. On Thursday, it was rising again and the Relative Strength Rating for Textron stock jumped from 77 to 81, clearing a major milestone.
Providence, Rhode Island-based Textron shot to an 88.41 high on Feb. 8, its highest price ever, after rising via a couple of flat bases. It dipped to 84 on Wednesday and on Thursday Textron rose an 85.38 close.
Textron Stock Upgrades To Top-Performers Group
The upgraded Relative Strength Rating of 81 shows that Textron stock is in the top 19% of stocks for price performance over the past year. It's kind of a big deal. Market research shows that the market's biggest winners tend to have an RS Rating north of 80 in the early stages of their moves. And it mirrors the company's other strong ratings.
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Textron also has a strong 92 Earnings Per Share Rating out of 99. Its Composite Rating is 93. The composite is a combination of five fundamental and technical ratings that, together, provide a good overview of a stock. it has a B Accumulation/Distribution Rating, which shows institutions are fairly heavy buyers of its stock. And it B SMR Rating, a gauge of sales, profit margins and return on equity, demonstrates fundamentals strength.
Textron is now considered extended and out of buy range after clearing an 81.39 buy point in a first-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
Fundamentals Improved In Recent Quarters
The company posted 30% earnings growth in the latest quarterly report on Jan. 24, to $1.60 per share, while sales grew 7% to $3.89 billion. The prior three periods its EPS rose 8%, then 32% and 30%. Revenue grew 1%, 9% and 9% in that period.
Textron stock holds the No. 18 rank among its peers in the 71-stock Aerospace/Defense industry group. MtronPTI, a maker of high-performance communications, control, radar and other system is also among the groups highest-rated stocks. So is jet engine and aircraft parts maker Heico.
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