5 Most Profitable Industrial Stocks Now

2. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 71

Founded in 1993 through the merger of four industrial aerospace companies by a private equity firm in a leveraged buyout, Transdigm Group Incorporated (NYSE:TDG), through its wholly owned subsidiaries, including TransDigm Inc., is a leading global designer, producer and supplier of highly engineered aircraft components, systems and subsystems.

On February 7, TransDigm Group Incorporated (NYSE:TDG) released its earnings report for the fiscal first quarter of 2023, according to which, the company raked in revenues amounting to $1.4 billion. The company’s EPS for the quarter came in at $4.58, beating market estimates by $0.28.

Truist analyst Michael Ciarmoli raised his price target on TransDigm Group Incorporated (NYSE:TDG) to $810 from $710 and maintained a Buy rating on the shares on February 8. According to Ciarmoli, the company’s Q1 results marked a “strong beat” while the management’s commentary points toward further earnings growth as high-margin aftermarket volumes continue to recover.

According to Insider Monkey’s data, 71 hedge funds were long TransDigm Group Incorporated (NYSE:TDG) at the end of Q4 2022, compared to 63 funds in the prior quarter. Sharlyn C. Heslam’s Stockbridge Partners is the largest stakeholder of the company, with 1.60 million shares worth $841 million.

Here is what Vulcan Value Partners has to say about TransDigm Group Incorporated (NYSE:TDG) in its Q2 2022 investor letter:

“TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”