Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified TransDigm Group as such a stock due to the following factors:
- TDG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $85.4 million.
- TDG is making at least a new 3-day high.
- TDG has a PE ratio of 60.8.
- TDG is mentioned 1.39 times per day on StockTwits.
- TDG has not yet been mentioned on StockTwits today.
- TDG is currently in the upper 20% of its 1-year range.
- TDG is in the upper 35% of its 20-day range.
- TDG is in the upper 45% of its 5-day range.
- TDG is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on TDG:
TransDigm Group Incorporated, through its subsidiaries, designs, produces, and supplies aerospace components for commercial and military aircraft customers in the United States. The company operates through three segments: Power & Control, Airframe, and Non-aviation. TDG has a PE ratio of 60.8. Currently there are 7 analysts that rate TransDigm Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for TransDigm Group has been 354,400 shares per day over the past 30 days. TransDigm Group has a market cap of $10.1 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.77 and a short float of 5.1% with 5.69 days to cover. Shares are up 19.3% year-to-date as of the close of trading on Thursday.
rates TransDigm Group as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 19.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TRANSDIGM GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TRANSDIGM GROUP INC increased its bottom line by earning $3.18 versus $2.42 in the prior year. This year, the market expects an improvement in earnings ($8.34 versus $3.18).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 36.0% when compared to the same quarter one year prior, rising from $84.03 million to $114.26 million.
- Powered by its strong earnings growth of 1055.00% and other important driving factors, this stock has surged by 34.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The gross profit margin for TRANSDIGM GROUP INC is rather high; currently it is at 55.63%. Regardless of TDG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TDG's net profit margin of 17.79% compares favorably to the industry average.
- You can view the full TransDigm Group Ratings Report.