TransDigm Group Inc (TDG): Today's Featured Industrial Goods Winner

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.

TransDigm Group ( TDG) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 0.3%. By the end of trading, TransDigm Group rose $3.71 (2.6%) to $147.56 on average volume. Throughout the day, 526,293 shares of TransDigm Group exchanged hands as compared to its average daily volume of 491,800 shares. The stock ranged in a price between $145.31-$147.75 after having opened the day at $146.45 as compared to the previous trading day's close of $143.85. Other companies within the Industrial Goods sector that increased today were: Cleantech Solutions International ( CLNT), up 12.5%, Coleman Cable ( CCIX), up 10.7%, Goldfield ( GV), up 10.3%, and Metalico ( MEA), up 8.4%.
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TransDigm Group Incorporated, through its subsidiaries, designs, produces, and supplies engineered aerospace components for commercial and military aircraft customers in the United States. TransDigm Group has a market cap of $7.48 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 26.2, above the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Friday. Currently there are five 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, increase in net income, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, JinkoSolar ( JKS), down 10.1%, Energy Recovery ( ERII), down 7.8%, ZBB Energy Corporation ( ZBB), down 5.9%, and Continental Materials Corporation ( CUO), down 4.2%, were all laggards within the industrial goods sector with Hovnanian ( HOV) being today's industrial goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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