Textron, the American industrial conglomerate, shows relatively strong fundamentals and is coming back to attractive price.

From a fundamental viewpoint, the security is cheap with a PER of 11.13x for 2012 and 10.27x for 2013. Besides, EV/Sales is low with a ratio at 0.7x for this year.

After several weeks of oscillations within the mid-term range USD 22.5/28.35, the stock is coming back close to the lower limit of the range.
Moving averages are flat and technical indicators illustrate the oversold situation. The USD 22.5/23 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the USD 24.3 mid-term resistance and then the long-term target price is USD 28.35.

Thanks to the technical pattern and Textron’s strong fundamentals, active investors can take a long position above USD 22.5. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at USD 24.3 in a first time and then at USD 28.4.
However, a bearish trend would regain the upper hand if the security crosses USD 22.5.