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

Triumph Group ( TGI) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.3%. By the end of trading, Triumph Group rose $1.34 (1.7%) to $78.85 on heavy volume. Throughout the day, 788,246 shares of Triumph Group exchanged hands as compared to its average daily volume of 508,800 shares. The stock ranged in a price between $78.21-$79.27 after having opened the day at $78.27 as compared to the previous trading day's close of $77.51. Other companies within the Aerospace/Defense industry that increased today were: Micronet Enertec Technologies ( MICT), up 5.2%, TransDigm Group ( TDG), up 3.4%, Exelis ( XLS), up 2.5% and Moog ( MOG.A), up 2.4%.
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Triumph Group, Inc., through its subsidiaries, engages in the design, engineering, manufacture, repair, overhaul, and distribution of aero structures, 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 13.8, below the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Triumph Group a buy, no analysts rate it a sell, and 3 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 solid stock price performance, revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Erickson Air-Crane ( EAC), down 3.7%, B/E Aerospace ( BEAV), down 2.8%, Smith & Wesson Holding Corporation ( SWHC), down 2.3% and Huntington Ingalls Industries ( HII), down 1.6% , were all laggards within the aerospace/defense industry with Embraer S.A ( ERJ) being today's aerospace/defense industry laggard.

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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