U.S. Markets closed

Here's Why You Should Add Teledyne Technologies (TDY) Stock

Zacks Equity Research

Earnings estimates for Teledyne Technologies Incorporated TDY have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 4.2% and 5.5% during the said period, respectively.

Teledyne Technologies provides instrumentation, digital imaging, aerospace and defense electronics along with engineered systems in the United States, the U.K., Denmark, Canada, France and the Netherlands.

Let’s focus on the factors that make the stockan appropriate pick at the moment.

Zacks Rank &Surprise History

The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company has an average four-quarter positive earnings surprise of 10.65%.

Earnings Estimate Revision

Teledyne Technologies’ earnings estimates for 2019 and 2020 have moved up 5.63% and 9.17% on a year-over-year basis to $9.38 and $10.24, respectively.The company’s revenue estimates for 2019 and 2020 rose 6.69% and 4.17% on a year-over-year basis to $3.10 billion and $3.23 billion, respectively.

Price Movement

In the past 12 months, Teledyne Technologies’ shares have rallied 31.6% compared with the industry’s rise of 6.7%.

Solid Backlog

Higher contract wins from the Pentagon as well as other U.S. allies for cost-effective defense solutions are primary growth catalysts for Teledyne Technologies. In fact, the contract wins bolster the company’s backlog. As of Dec 31, 2018, it had a funded backlog of $1,568.8 million compared with $1,250.2 million at Dec 31, 2017.An impressive backlog trend indicates favorable revenue growth prospects for the company in the upcoming quarters.

Other Key Picks

Some other top-ranked stocks from the same industryare Triumph Group, Inc TGI, AeroVironment, Inc AVAV and Heico Corporation HEI. Triumph Group sports a Zacks Rank of 1, while AeroVironment and Heico holds a Zacks Rank of 2 (Buy).

Triumph Group pulled off an average positive earnings surprise of 1.64% in the last four quarters. The company’s long-term earnings growth is pegged at 4.80%

AeroVironment came up with an average positive earnings surprise of 294.51% in the last four quarters. The company’s long-term earnings growth is pegged at 25%

Heico pulled off an average positive earnings surprise of 4.80% in the last four quarters. The company’s long-term earnings growth is pegged at 12.10%

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


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
 
AeroVironment, Inc. (AVAV) : Free Stock Analysis Report
 
Heico Corporation (HEI) : Free Stock Analysis Report
 
Triumph Group, Inc. (TGI) : Free Stock Analysis Report
 
Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research