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

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 Aerospace/Defense industry lower today making it today's featured Aerospace/Defense laggard. The industry as a whole closed the day up 0.9%. By the end of trading, TransDigm Group fell $1.96 (-1.3%) to $147.88 on light volume. Throughout the day, 292,881 shares of TransDigm Group exchanged hands as compared to its average daily volume of 400,400 shares. The stock ranged in price between $146.20-$148.56 after having opened the day at $148.17 as compared to the previous trading day's close of $149.84. Another company within the Aerospace/Defense industry that decreased today was Curtiss-Wright Corporation ( CW), down 2.3%.
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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 industrial goods sector. The company has a P/E ratio of 27.3, above the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Thursday. Currently there are six analysts that rate TransDigm Group a buy, no analysts rate it a sell, and five 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.

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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