Triumph Group (TGI) Soars 32.9%: Is Further Upside Left in the Stock?
Triumph Group (TGI) shares rallied 32.9% in the last trading session to close at $16.31. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.4% gain over the past four weeks.
Triumph Group has been benefiting from a steady flow of orders from its diverse customer base. Due to its diverse high quality product offering, the company continues to get orders from commercial airplane producers and various military organizations globally, which enhances its order book, thereby bolstering its top as well as bottom-line expansion prospects.
Triumph Group’s decision to sell its Product Support business for $750 million and utilize the proceeds to reduce debts will strengthen its balance sheet. This decision will also allow the company to focus on its OEM component, spares and IP-based aftermarket business. This strategic decision will further improve Triumph’s capacity to win and profitably grow in the expanding markets.
This aircraft supplier is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +8.3%. Revenues are expected to be $366.32 million, up 11.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Triumph Group, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TGI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Triumph Group is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, Moog (MOG.A), finished the last trading session 0.7% higher at $143.09. MOG.A has returned 1.4% over the past month.
Moog's consensus EPS estimate for the upcoming report has changed +1.7% over the past month to $1.47. Compared to the company's year-ago EPS, this represents a change of +17.6%. Moog currently boasts a Zacks Rank of #3 (Hold).
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Triumph Group, Inc. (TGI) : Free Stock Analysis Report
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