Triumph Group Inc. (TGI): Today's Featured Aerospace/Defense 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

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 up 1.0%. By the end of trading, Triumph Group fell $5.72 (-7.2%) to $73.95 on heavy volume. Throughout the day, 2,252,387 shares of Triumph Group exchanged hands as compared to its average daily volume of 427,000 shares. The stock ranged in price between $71.69-$78.31 after having opened the day at $75.86 as compared to the previous trading day's close of $79.67. Another company within the Aerospace/Defense industry that decreased today was TAT Technologies ( TATT), down 2.3%.
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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 $4.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 22.0% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Triumph Group a buy, no analysts rate it a sell, and 1 rates 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, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Ducommun ( DCO), down 4.5%, Heico Corporation ( HEI.A), down 3.6%, Innovative Solutions and Support ( ISSC), down 3.3% and Spirit AeroSystems Holdings ( SPR), down 3.1% , were all gainers within the aerospace/defense industry with Lockheed Martin Corporation ( LMT) being today's featured aerospace/defense industry leader.

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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