Here's Why You Must Add TransDigm Group Stock to Your Portfolio Now

TransDigm Group Inc. TDG is a producer, supplier and designer of highly engineered aerospace components, systems and subsystems for use in commercial and military aircraft. Its rising earnings estimates, improving budget for defense, better solvency and strong liquidity offer a great investment opportunity in the Zacks Aerospace Defense Equipment industry.Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an investment opportunity at the moment.TDG’s Growth Projections & Surprise History The Zacks Consensus Estimate for TDG’s fiscal 2025 earnings per share (EPS) has increased 0.4% to $37.21 in the past 30 days. The Zacks Consensus Estimate for the company’s total revenues for fiscal 2025 is pegged at $8.87 billion, which indicates year-over-year growth of 11.7%.TransDigm Group’s (three to five years) earnings growth is pegged at 13.5%. It delivered an average earnings surprise of 6.50% in the last four quarters.TDG’s Solvency TransDigm Group’s times interest earned ratio (TIE) at the end of the first quarter of fiscal 2025 was 2.7. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.TDG’s Liquidity The company’s current ratio at the end of the first quarter of fiscal 2025 was 2.70, higher than the industry’s average of 1.42. The ratio, being greater than one, indicates TransDigm’s ability to meet its future short-term liabilities without difficulties.Rising Defense Budget In August 2024, the U.S. Senate Committee on Appropriations approved the Fiscal Year 2025 Defense Appropriations Act, which provides $852.2 billion in total funding, indicating a 3.3% increase from fiscal 2024’s approved amount. TransDigm's products hold a significant position in the U.S. defense aerospace market. The company has been enjoying significant growth opportunities in the defense space due to the expansionary budgetary policy adopted by the U.S. administration and other developing nations in the past couple of years.TDG Stock Price Performance In the past month, TDG shares have rallied 3.6% against the industry’s decline of 1.8%.Image Source: Zacks Investment ResearchOther Stocks to Consider A few other top-ranked stocks from the same industry are Leonardo DRS, Inc. DRS, Mercury Systems MRCY and FTAI Aviation Ltd. FTAI, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.DRS’ long-term earnings growth rate is pegged at 21.2%. The Zacks Consensus Estimate for the company’s total revenues for 2025 stands at $3.5 billion, which indicates year-over-year growth of 8.4%.Mercury Systems’ long-term earnings growth rate is 13.2%. The Zacks Consensus Estimate for MRCY’s fiscal 2025 sales is pegged at $881.1 million, which implies an improvement of 5.5% from the fiscal 2024 reported figure.The Zacks Consensus Estimate for FTAI’s 2025 EPS stands at $6.60 per share, which indicates growth of 2,162.5% from the previous year’s figure. The Zacks Consensus Estimate for FTAI’s total revenues for 2025 is pegged at $2.14 billion, which implies growth of 23.2% from the 2024 reported figure.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transdigm Group Incorporated (TDG): Free Stock Analysis Report Mercury Systems Inc (MRCY): Free Stock Analysis Report FTAI Aviation Ltd. (FTAI): Free Stock Analysis Report Leonardo DRS, Inc. (DRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks