Teledyne Technologies: Riding The Global Defense And Unmanned Systems Wave

Jay Capital
1.26K Followers
(9min)

Summary

  • Teledyne's strong 4Q24 results, with revenue and EPS beating estimates, reflect robust growth in digital imaging, instrumentation, and aerospace and defense electronics segments.
  • I remain bullish on TDY due to its exposure to rising global defense spending, particularly in unmanned systems like the Black Hornet drones.
  • The marine instrumentation segment shows significant growth potential, driven by offshore energy demand and subsea defense applications amid geopolitical tensions.

Military personnel employing the army satellite reconnaissance system

Dragos Condrea

Summary

Following my coverage on Teledyne Technologies (NYSE:TDY) in Sep’23, which I recommended a buy rating as I expected TDY to continue deleveraging the balance sheet, providing more financial flexibility to conduct M&A, this post is to provide

This article was written by

1.26K Followers
I take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-term growth, no cyclicality, and a robust balance sheet.Nevertheless, investing in successful company is risky because one may end up paying too much (this is where valuation matters). I firmly believe this, yet there are situations where the development runway is so vast that price matters much less in the immediate future.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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