Textron quietly positions as a low-risk aerospace bet amid SpaceX hype

1 min read
Source: CNBC
Textron quietly positions as a low-risk aerospace bet amid SpaceX hype
Photo: CNBC
TL;DR

Textron (TXT) is highlighted as a stealthy aerospace/defense play with a solid first quarter beat, a shift toward pure defense backed by a $19B backlog, and a forward earnings multiple around 13.7x (below its 5-year average of 18x). With macro headwinds weighing on broader aviation, the stock trades at a discount even as defense demand persists, suggesting upside as the market re-rates. The piece advocates a defined-risk bullish approach via a Sep 95/110 call spread for about $4.65 to capture upside without owning the stock.

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