Is Transdigm Group (TDG) Stock Outpacing Its Aerospace Peers 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? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
TransDigm Group is one of 48 individual stocks in the Aerospace sector. Collectively, these companies sit at #2 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. TransDigm Group is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for TDG's full-year earnings has moved 7.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, TDG has returned 56.8% so far this year. Meanwhile, the Aerospace sector has returned an average of -2.6% on a year-to-date basis. This means that TransDigm Group is outperforming the sector as a whole this year.
Another Aerospace stock, which has outperformed the sector so far this year, is Textron (TXT). The stock has returned 12.5% year-to-date.
In Textron's case, the consensus EPS estimate for the current year increased 3.4% 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 #136 in the Zacks Industry Rank. On average, stocks in this group have gained 21.4% 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 #47. The industry has moved -7.6% so far this year.
Investors with an interest in Aerospace stocks should continue to track TransDigm Group and Textron. These stocks will be looking to continue their solid performance.
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Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
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