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Reasons to Add Teledyne Technologies Stock to Your Portfolio Now

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Teledyne Technologies, Inc. (TDY - Free Report) , with its strategic buyouts, rising earnings estimates and low debt, offers a great investment opportunity in the Zacks Aerospace sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.

TDY’s Growth Projections & Surprise History
 

The Zacks Consensus Estimate for TDY’s 2024 earnings per share (EPS) has increased 0.3% to $19.43 per share in the past 60 days. The Zacks Consensus Estimate for Teledyne Technologies’ total revenues for the third quarter of 2024 stands at $1.42 billion, which indicates year-over-year growth of 1.6%.

Teledyne Technologies’ (three to five years) long-term earnings growth rate is 7.3%. The company delivered an average earnings surprise of 3.47% in the last four quarters.

Debt Position of TDY
 

Currently, Teledyne Technologies’ total debt to capital is 23.09%, better than the industry’s average of 53.06%.

Teledyne Technologies’ times interest earned ratio (TIE) at the end of the second quarter of 2024 was 16.3. The company’s strong TIE ratio indicates that it will be able to meet its interest payment obligations in the near term without any problems.

Teledyne’s Liquidity
 

The company’s current ratio at the end of the second quarter of 2024 was 1.98, higher than the industry’s average of 1.51. The ratio, being greater than one, indicates Teledyne Technologies’ ability to meet its future short-term liabilities without difficulties.

Strategic Buyouts Aid TDY
 

Strategic acquisitions have been an integral aspect of Teledyne's expansion. Among its recent takeovers, worth mentioning is Adimec Holding B.V. and its affiliates, which the company acquired in June 2024. This buyout is anticipated to benefit Teledyne's Digital Imaging division.

Teledyne previously bought Valeport Holdings 2019 Limited and its subsidiaries in April 2024. The purchase ought to strengthen Teledyne's portfolio of maritime instrumentation products. Such acquisitions should expand TDY’s product portfolio, bolstering its revenue generation prospects.

Teledyne Stock Price Movement
 

In the past three months, Teledyne shares have rallied 14.4% compared with the industry’s growth of 12.2%.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider
 

A few other top-ranked stocks from the same industry are FTAI Aviation Ltd. (FTAI - Free Report) , which sports a Zacks Rank #1 (Strong Buy), and Leonardo DRS, Inc. (DRS - Free Report) and Curtiss-Wright Corp. (CW - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

FTAI Aviation delivered an average earnings surprise of 27.03% in the last four quarters. The Zacks Consensus Estimate for FTAI’s total revenues for 2024 stands at $1.65 billion, which indicates growth of 40.7% from the 2023 reported figure.

Leonardo DRS’ long-term earnings growth rate is 18%. The Zacks Consensus Estimate for DRS’ total revenues for 2024 stands at $3.15 billion, which indicates year-over-year growth of 11.4%.

CW delivered an average earnings surprise of 11.52% in the last four quarters. The Zacks Consensus Estimate for its 2024 revenues is pegged at $3.05 billion, which implies a rise of 7.1% from the 2023 reported sales figure.


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