TransDigm Is Flying High

Aug. 17, 2022 12:44 AM ETTDG
Jim Van Meerten profile picture
Jim Van Meerten
66.04K Followers

Summary

  • 20 new highs and up 25.77% in the last months.
  • 12 Wall Street analysts rate it Buy or better.
  • Price targets as high as 801.00.

View on the cabin of the with seats aircraft, without interior trim, for test flights

aapsky/iStock via Getty Images

The Chart of the Day belongs to the electrical control manufacturer TransDigm Group (TDG). I found the stock by sorting the Russell 3000 Index stocks first by the most frequent number of new highs in the last month and having a Trend Spotter buy signal, then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Spotter first signaled a buy on 7/20, the stock gained 15.81%.

TDG TransDigm

TDG vs Daily Moving Averages ( )

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The company's Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. Its Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio. (Source: Seeking Alpha)

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

  • 40% technical buy signals but increasing
  • 17.00+ Weighted Alpha
  • 12.09% gain in the last year
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 20 new highs and up 25.77% in the last month
  • Relative Strength Index 79.99%
  • Technical support level at 671.50
  • Recently traded at 677.36 with 50 day moving average of 579.82

Fundamental factors:

  • Market Cap $36.7 billion
  • P/E 47.55
  • Revenue expected to grow 13.10% this year and another 12.20% next year
  • Earnings estimated to continue to compound at an annual rate of 25.20% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analysts have 8 strong buy, 4 buy and 4 hold opinions on the stock
  • Analysts gives average price targets at 724.76 with some as high as 801.00
  • The individual investors following the stock on Motley Fool voted 512 to 21 that the stock will beat the market with the more experienced investors voting 126 to 5 for the same result
  • 12,010 investors are monitoring the stock on Seeking Alpha

Ratings Summary

SA Authors Buy 4.00
Wall Street Buy 4.25
Quant Buy 4.11

Factor Grades

Now 3M ago 6M ago
Valuation D+ D+ D-
Growth C C+ C+
Profitability A- B+ A-
Momentum B+ B A-
Revisions B B D

Quant Ranking

Sector

Industrials

Industry

Aerospace and Defense

Ranked Overall

580 out of 4666

Ranked in Sector

97 out of 614

Ranked in Industry

4 out of 59

Quant ratings beat the market »

This article was written by

Jim Van Meerten profile picture
66.04K Followers
Jim Van Meerten writes on financial subjects here and on Barchart Portfolio Blogs and Seeking Alpha. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended post-baccalaureate and graduate courses in Business Administration, Quantitative Math, and Education at Florida Atlantic University, Georgia State University and University of North Carolina at Charlotte. In the past he has been an accountant, attorney, adjunct professor in Business Law, Accounting and Internal Auditing, financial advisor, supervisory principal, and compliance officer. He also passed the Georgia CPA Exam, the Certified Internal Auditor Exam, and the FINRA Series 7, 24 and 9/10 exams.He is presently also a contributor on MSN Top Stocks Blog, Motley Fool and is a member of the M100 on Marketocracy, an elete honor chosen by the editors of Marketocracy as being in the top 100 portfolio managers of over 100,000 portfoiios they review. He would enjoy hearing your comments at JimVanMeerten@gmail.com.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TDG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

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