TransDigm Group Inc
) hit a 52-week high of $154.79 during Monday's trading session.
However, the stock closed the session at $183.00, which reflects
a solid yearly return of 23.42% and a year-to-date return of
14.68%. The average trading volume for the last 3 months
aggregated at 377,018 shares.
The Zacks Rank #2 (Buy) stock still has enough fundamentals to
help it surpass its yearly high. Strategic acquisitions, strong
first-quarter results, a diversified revenue base and strong cash
flow are some of the growth catalysts for the stock.
The company delivered positive earnings surprises in 3 of the
last 4 quarters with an average beat of 35.6%. The long-term
expected earnings growth rate for this stock is 17.2%.
TransDigm's shares have been trending higher since it acquired
Elektro-Metall Export GmbH (EME GmbH) for $47.4 million on Mar 6,
2014. The acquisition was a strategic move by TransDigm as the
nature of operations of EME GmbH, its products and commercial as
well as military clients perfectly complement TransDigm's
existing portfolio. This acquisition is expected to further
strengthen the company's presence in the aerospace
electromechanical actuators, electrical and electromechanical
components and assemblies primarily for commercial aircrafts,
helicopters and other specialty applications segments.
This apart, TransDigm has been pursuing strategic acquisitions
to broaden its reach in the highly competitive aerospace market.
In Dec 2013, TransDigm Group completed the acquisition of
Airborne Systems Inc. from Metalmark Capital in an all-cash deal
valued at approximately $250 million.
Further, with respect to earnings performance, TransDigm
Group's reported strong first-quarter fiscal 2014 results on Feb
4, 2014. Results were primarily driven by the company's strategic
acquisitions in fiscal 2013, improving commercial aftermarket and
strength in commercial aerospace.
This maker of components for commercial and military aircrafts
reported adjusted earnings per share of $1.66, which comfortably
surpassed the Zacks Consensus Estimate of $1.28, by 29.7%. The
10% per share increase was lower than the 15.2% increase of
adjusted net income, primarily due to the higher share count in
The company also raised its guidance for fiscal 2014 driven by
positive synergies from its three recent acquisitions and to
specially highlight the benefits of the Airborne Systems
acquisition. It currently expects net sales to be in the range of
$2.28 billion to $2.34 billion compared with the guidance of
$2.1-$2.2 billion provided earlier.
Adjusted earnings per share are expected to be in the range of
$7.35 a share to $7.65 a share, compared with the previous
guidance of $7.00-$7.32 per share.
Other Stocks to Consider
Other stocks that look promising include
Alliant Techsystems Inc
), all of which carry a Zacks Rank #2.
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AEROVIRONMENT (AVAV): Free Stock Analysis
TRANSDIGM GROUP (TDG): Free Stock Analysis
TELEDYNE TECH (TDY): Free Stock Analysis
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