Editor's Note: 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.
Triumph Group (
TGI) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense laggard. The industry as a whole closed the day down 1.2%. By the end of trading, Triumph Group fell $1.30 (-2%) to $62.03 on light volume. Throughout the day, 252,509 shares of Triumph Group exchanged hands as compared to its average daily volume of 614,200 shares. The stock ranged in price between $62.01-$63.30 after having opened the day at $62.98 as compared to the previous trading day's close of $63.33. Other companies within the Aerospace/Defense industry that declined today were:
Aerosonic Corporation (
AIM), down 6%,
TAT Technologies (
TATT), down 4.7%,
Esterline Technologies (
ESL), down 3.4%, and
Aerovironment Incorporated (
AVAV), down 2.9%.
Triumph Group, Inc., through its subsidiaries, engages in the design, engineering, manufacture, repair, overhaul, and distribution of aerostructures, aircraft components, accessories, subassemblies, and systems worldwide. Triumph Group has a market cap of $3.14 billion and is part of the
industrial goods sector. The company has a P/E ratio of 10.7, equal to the average aerospace/defense industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 8.2% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Triumph Group a buy, no analysts rate it a sell, and none rate it a hold.
TheStreet Ratings rates Triumph Group as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
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).
