5 Best Aerospace Stocks To Buy

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1. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 71

TransDigm Group Incorporated (NYSE:TDG) was founded in 1993 and is based in Cleveland, Ohio. The company designs, manufactures, and distributes aircraft components in the United States and internationally. TransDigm Group Incorporated (NYSE:TDG) operates through Power & Control, Airframe, and Non-aviation segments. It is one of the best aerospace stocks to monitor. 

On February 28, Ronald Epstein, an analyst at Bank of America, increased the price target on TransDigm Group Incorporated (NYSE:TDG) from $770 to $890 and maintained a Buy rating on the shares. This follows what the analyst describes as “another quarter of impressive margin expansion.” The management of TransDigm Group Incorporated (NYSE:TDG) has also projected high-teens percentage growth in Commercial aftermarket sales, which BofA noted could potentially increase further if there is a stronger recovery in international air traffic and a faster reopening in China.

According to Insider Monkey’s fourth quarter database, 71 hedge funds were long TransDigm Group Incorporated (NYSE:TDG), compared to 63 funds in the prior quarter. Stockbridge Partners is the largest stakeholder of the company, with 1.60 million shares worth $1 billion. 

Vulcan Value Partners made the following comment about TransDigm Group Incorporated (NYSE:TDG) in its Q4 2022 investor letter:

“TransDigm Group Incorporated (NYSE:TDG) is an aerospace company making original equipment manufacturer and aftermarket parts for commercial and military aircraft. Approximately 90% of its net sales are from proprietary parts. TransDigm is the sole source provider for parts representing approximately 80% of its revenues. The company grew its EBITDA just over 20% in fiscal 2022 as air travel recovered from the COVID-19 downturn. We believe that the company will have another strong year in fiscal 2023.”

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