NEW YORK (TheStreet) -- TransDigm (TDG) - Get Report  shares are spiking 3.5% to $263.93 Tuesday morning after S&P Dow Jones Indices announced that the maker of commercial and military aerospace components will join the S&P 500 Thursday after the market close. 

The Cleveland-based company will replace drug maker Baxalta (BXLT)which is being acquired by Shire (SHPG) for $32 billion.

A week ago TransDigm agreed to acquire ILC Holdings, parent of defence firm Data Device, from private-equity firm Behrman Capital for $1 billion in cash. 

The deal is expected to be completed by the end of the third quarter.

Looking ahead, the company will be hosting its 2016 analyst day on June 23 in New York City.

Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B-.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

You can view the full analysis from the report here: TDG

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