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

Zacks Equity Research

Solid backlog, strategic buyouts in digital imaging market and expanding prospects in instrumentation is likely to boost Teledyne Technologies Incorporated’s TDY growth.

Earnings estimates for 2019 and 2020 have moved up 12.05% and 10.35% on a year-over-year basis to $9.95 and $10.98, respectively. Revenue estimates for 2019 and 2020 rose 6.79% and 4.16% on a year-over-year basis to $3.10 billion and $3.23 billion, respectively.

Let’s focus on the factors that make the stock an 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 9.26%.

Price Performance & Long-Term Growth

In the past 12 months, Teledyne Technologies’ shares have rallied 28.8% compared with the industry’s rise of 10.8%.



The company’s long-term (3 to 5 years) earnings growth is pegged at 7.50%.

Debt/Capital &Current Ratio

Teledyne Technologies is consistently striving to preserve balance-sheet strength. Currently, the company has a current ratio of 1.63. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 23.93%, lower than the Zacks S&P 500 composite’s 43.30%.

Favorable Budget

The U.S. administration is in favor of higher defense spending. Macroeconomic environment in the nation is boosting the company’s prospects. Impressively, President Trump proposed defense spending of $750 billion for fiscal 2020, which reflects 4.4% increase from the current defense budget. Increase in spending provisions, on approval, is likely to drive order growth for defense contractors like Teledyne Technologies.

Other Key Picks

Some other top-ranked stocks from the same sector are Aerojet Rocketdyne Holdings, Inc AJRD, Transdigm Group Incorporated TDG and HEICO Corporation HEI. Aerojet Rocketdyne and Transdigm Group sport a Zacks Rank of 1,while HEICO holds a Zacks Rank #2 (Buy).

Aerojet Rocketdyne pulled off an average positive earnings surprise of 25.46% in the last four quarters. The company’s long-term earnings growth is pegged at 5.50%

Transdigm Group came up with an average positive earnings surprise of 10.71% in the last four quarters. The company’s long-term earnings growth is pegged at 12.60%

HEICO pulled off an average positive earnings surprise of 9.47% in the last four quarters. The company’s long-term earnings growth is pegged at 13.95%

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Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
 
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