3 Stocks Dragging In The Industrial Goods Sector
1. As of noon trading, TransDigm Group ( TDG) is down $2.40 (-1.6%) to $147.90 on average volume Thus far, 178,520 shares of TransDigm Group exchanged hands as compared to its average daily volume of 314,000 shares. The stock has ranged in price between $146.25-$151.00 after having opened the day at $151.00 as compared to the previous trading day's close of $150.30. TransDigm Group Incorporated, through its subsidiaries, designs, produces, and supplies engineered aerospace components for commercial and military aircraft customers in the United States. TransDigm Group has a market cap of $7.5 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 27.3, above the S&P 500 P/E ratio of 17.7. Shares are up 10.2% year to date as of the close of trading on Monday. TheStreet Ratings rates TransDigm Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, notable return on equity, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full TransDigm Group Ratings Report now. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE. If you are interested in one of these 5 stocks, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG). A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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