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

TransDigm Group ( TDG) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense laggard. The industry as a whole closed the day down 1.9%. By the end of trading, TransDigm Group fell $8.72 (-6.8%) to $120.01 on heavy volume. Throughout the day, 1.9 million shares of TransDigm Group exchanged hands as compared to its average daily volume of 501,500 shares. The stock ranged in price between $117.77-$129.14 after having opened the day at $128.55 as compared to the previous trading day's close of $128.73. Other company's within the Aerospace/Defense industry that declined today were: Sifco Industries ( SIF), down 8.3%, Hexcel Corporation ( HXL), down 4.4%, Heico Corporation ( HEI), down 4%, and Rockwell Collins ( COL), down 4%.

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 $6.63 billion and is part of the industrial goods sector. The company has a P/E ratio of 26.1, above the average aerospace/defense industry P/E ratio of 26 and above the S&P 500 P/E ratio of 17.7. Shares are up 34.5% year to date as of the close of trading on Monday. Currently there are six analysts that rate TransDigm Group a buy, no analysts rate it a sell, and six 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).
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