Is Transdigm Group (TDG) Outperforming Other Aerospace Stocks This Year?
Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Has TransDigm Group (TDG) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.
TransDigm Group is a member of our Aerospace group, which includes 48 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. TransDigm Group is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for TDG's full-year earnings has moved 8.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, TDG has returned 51.9% so far this year. In comparison, Aerospace companies have returned an average of -7.1%. As we can see, TransDigm Group is performing better than its sector in the calendar year.
Another Aerospace stock, which has outperformed the sector so far this year, is Textron (TXT). The stock has returned 8.3% year-to-date.
The consensus estimate for Textron's current year EPS has increased 4.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, TransDigm Group belongs to the Aerospace - Defense Equipment industry, a group that includes 21 individual companies and currently sits at #81 in the Zacks Industry Rank. On average, this group has gained an average of 15.9% so far this year, meaning that TDG is performing better in terms of year-to-date returns.
Textron, however, belongs to the Aerospace - Defense industry. Currently, this 26-stock industry is ranked #52. The industry has moved -11.9% so far this year.
Investors interested in the Aerospace sector may want to keep a close eye on TransDigm Group and Textron as they attempt to continue their solid performance.
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
Textron Inc. (TXT) : Free Stock Analysis Report
