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Is It Too Late To Consider Buying Teledyne Technologies Incorporated (NYSE:TDY)?

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  • TDY

Let's talk about the popular Teledyne Technologies Incorporated (NYSE:TDY). The company's shares saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Teledyne Technologies’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Teledyne Technologies

What is Teledyne Technologies worth?

According to my valuation model, Teledyne Technologies seems to be fairly priced at around 3.8% below my intrinsic value, which means if you buy Teledyne Technologies today, you’d be paying a fair price for it. And if you believe the company’s true value is $426.00, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Teledyne Technologies’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Teledyne Technologies look like?

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Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 63% over the next couple of years, the future seems bright for Teledyne Technologies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in TDY’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on TDY, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Teledyne Technologies, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for Teledyne Technologies you should be aware of.

If you are no longer interested in Teledyne Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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