TransDigm Group Inc (TDG): Today's Featured Aerospace/Defense Winner

TransDigm Group ( TDG) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.5%. By the end of trading, TransDigm Group rose $2.72 (2.2%) to $127 on average volume. Throughout the day, 452,314 shares of TransDigm Group exchanged hands as compared to its average daily volume of 515,300 shares. The stock ranged in a price between $123.94-$127.51 after having opened the day at $123.94 as compared to the previous trading day's close of $124.28. Other companies within the Aerospace/Defense industry that increased today were: Taser International ( TASR), up 5.9%, Alliant Techsystems ( ATK), up 3.1%, Triumph Group ( TGI), up 2.8%, and Smith & Wesson Holding Corporation ( SWHC), up 2.7%.

TransDigm Group Incorporated designs, produces, and supplies engineered aircraft components for use on commercial and military aircraft principally in the United States. TransDigm Group has a market cap of $6.36 billion and is part of the industrial goods sector. The company has a P/E ratio of 25.1, equal to the average aerospace/defense industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 30.1% year to date as of the close of trading on Friday. Currently there are seven analysts that rate TransDigm Group a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates TransDigm Group as a buy. 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, expanding profit margins and good cash flow from operations. 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.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the aerospace/defense industry could consider iShares DJ US Aerospace & Def Idx ( ITA) while those bearish on the aerospace/defense industry could consider ProShares Short Dow 30 ( DOG).

null

More from Markets

Weak China Data, Starbucks, Adobe, Apple, Facebook - 5 Things You Must Know

Weak China Data, Starbucks, Adobe, Apple, Facebook - 5 Things You Must Know

Throwback Thursday: GE, GM Head in Opposite Directions

Throwback Thursday: GE, GM Head in Opposite Directions

This Is Bear Market Action

This Is Bear Market Action

U.S. Stocks Close Mixed After Late Rally; GE, P&G Gain

U.S. Stocks Close Mixed After Late Rally; GE, P&G Gain

Jim Cramer Likes UAL - Watch Oil or Wait for Weakness Before Buying

Jim Cramer Likes UAL - Watch Oil or Wait for Weakness Before Buying