Textron Inc. (NYSE:TXT) is one of the best stocks to buy according to billionaire Mario Gabelli.
Textron Inc. (NYSE:TXT) is one of the companies in GAMCO Investors’ portfolio where the hedge fund has actually increased its stake from its position from more than a decade ago. As of the end of Q4 2025, GAMCO had 1.38 million shares valued at $120.4 million, making up nearly 1.2% of the 13F portfolio. Interestingly, this is above the 988,000 shares it had at the end of 2012, but below the peak of 2.7 million in mid-2018.
In its September 2025 quarterly commentary, Mario Gabelli described Textron Inc. (NYSE:TXT) as a company operating in a near-duopoly in the light and medium business jet markets, with strong operations and efficient product development. Gabelli also highlighted Bell’s helicopter and military aircraft programs, and noted that the V-280 opportunity could become a very large multi-decade program. Supporting the investment case, he had argued:
The business jet market, post COVID-19, has benefited as individuals and businesses seek a more private mode of air travel. In its Bell business, Textron is introducing new commercial helicopters and has won the U.S. Army’s contract to replace the UH-60 Black Hawk helicopter with its tiltrotor aircraft, the V-280, which could be a $100B plus multi-decade program. Textron’s track record of improving operations and gaining share should enhance its competitive position. Longer-term, we would not rule out Textron merging its aerospace and defense core with a larger defense company.
The call has worked well since the end of Q3 2025, with the stock rising around 11% through March 9, 2026. It continued its strong run in 2026, with 8% YTD returns, outperforming the broader S&P 500.
In a noticeable insider trade, Textron Executive Chairman Scott Donnelly exercised and sold 219,619 shares tied to a stock option award, according to an SEC filing dated February 18, 2026. Mr. Scott exercised 219,619 stock options at $49.58 on February 13, 2026, and then sold those shares the same day in multiple trades.
Textron Inc. is a diversified aerospace and defense company that operates a global network of aircraft, defense, industrial, and finance businesses. The company is known worldwide for its powerful brands, including Bell, Cessna, Beechcraft, Pipistrel, Jacobsen, Kautex, Lycoming, E-Z-GO, and Textron Systems.
While we acknowledge the risk and potential of TXT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TXT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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