TransDigm Group Inc.
) hit a 52-week high of $174.16 during Friday's trading session.
However, the stock closed the session at $173.21, which reflects
a solid yearly return of 46.8% and also compares favorably with
S&P's return of 23.7%. The average trading volume for the
last three months aggregated at 412,057 shares.
Despite its strong price appreciation, this Zacks Rank #1
(Strong Buy) stock still has enough fundamentals that may further
drive the stock upward. The company delivered positive earnings
surprises in 3 of the last 4 quarters with an average beat of
42.1%. The long-term expected earnings growth rate for this stock
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. The acquisition is a
strategic move by TransDigm as the nature of operation of
Airborne Systems, its products and commercial and military
clients perfectly complement TransDigm's existing portfolio. This
acquisition is expected to further strengthen the company's
presence in defense markets, which is one of the primary revenue
streams for TransDigm.
With respect to earnings performance, TransDigm Group's
fourth-quarter fiscal 2013 adjusted earnings per share was $1.75
as compared with the Zacks Consensus Estimate of loss of 18
cents. While organic net sales in the last reported quarter rose
5.6% year over year, driven by increase in volumes from
commercial original equipment manufacturer (OEM) and defense, net
sales improved 16.7% year-over-year.
The company also provided a positive outlook for fiscal 2014.
Adjusted earnings per share in fiscal 2014 are expected to be in
the range of $7.00 to $7.32, as compared with fiscal 2013
earnings of $6.90 per share. Net sales are anticipated to be in
the range of $2.1-$2.2 billion in fiscal 2014, compared with
revenues of $1.9 billion in fiscal 2013.
Over the last 7 days, 1 out of 5 estimates for 2014 have been
revised upward while none of the estimates were revised lower,
which led to a 0.5% rise in the Zacks Consensus Estimate to $6.56
per share. The Zacks Consensus Estimate is much lower than the
Other Stocks to Consider
Other stocks that look promising and are worth a look now
Alliant Techsystems Inc.
Electronic Systems Technology Inc.
Precision Orbital Sciences Corp.
All of these carry a Zacks Rank #1 (Strong Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis
ORBITAL SCIENCE (ORB): Free Stock Analysis
TRANSDIGM GROUP (TDG): Free Stock Analysis
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