We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Triumph Group Hit by Low Organic Sales, Commodity Prices
Read MoreHide Full Article
We issued an updated research report on Triumph Group, Inc. (TGI - Free Report) on Mar 14. The company’s stock has lost 19.1% in the last one year, comparing unfavorably with the Zacks categorized Aerospace/Defense Equipment industry’s gain of 22.1% over the same time frame.
The primary reasons for this underperformance are the drop in organic sales and volatility in energy and commodity prices.
Being a provider of products and services to the aerospace industry, Triumph Group’s performance largely depends on orders from defense majors like The Boeing Company (BA - Free Report) and General Dynamics (GD - Free Report) . Since Boeing accounts for more than 30% of the company’s net sales, a considerable reduction in purchases by the company might have a material impact on its financial performance.
A large percentage of the company’s aftermarket sales come from third-party repair and overhaul, thus exposing it to tough competition from original equipment manufacturers (OEMs) as well as third-party organizations. With freight demand being unstable, the outlook of the cargo market remains obscure.
Moreover, the company missed the Zacks Consensus Estimate in the four trailing quarters, the average negative surprise being 13.11%. The earnings growth estimate for the next fiscal is pegged at -7.90%.
Moreover, Triumph Group faces intense competition from Aerospace-Defense equipment providers like HEICO Corporation (HEI - Free Report) which has outperformed the industry over the last one year.
On a brighter note, across its four business units, Triumph Group’s pipeline of addressable opportunities continues to expand. Currently, the company is tracking over 800 active opportunities worth over $16 billion. During the third quarter of fiscal 2017, Triumph Group had 55 competitive new business wins worth over $350 million.
Zacks Rank
Triumph Group currently carries a Zacks Rank #5 (Strong Sell).
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Triumph Group Hit by Low Organic Sales, Commodity Prices
We issued an updated research report on Triumph Group, Inc. (TGI - Free Report) on Mar 14. The company’s stock has lost 19.1% in the last one year, comparing unfavorably with the Zacks categorized Aerospace/Defense Equipment industry’s gain of 22.1% over the same time frame.
The primary reasons for this underperformance are the drop in organic sales and volatility in energy and commodity prices.
Being a provider of products and services to the aerospace industry, Triumph Group’s performance largely depends on orders from defense majors like The Boeing Company (BA - Free Report) and General Dynamics (GD - Free Report) . Since Boeing accounts for more than 30% of the company’s net sales, a considerable reduction in purchases by the company might have a material impact on its financial performance.
A large percentage of the company’s aftermarket sales come from third-party repair and overhaul, thus exposing it to tough competition from original equipment manufacturers (OEMs) as well as third-party organizations. With freight demand being unstable, the outlook of the cargo market remains obscure.
Moreover, the company missed the Zacks Consensus Estimate in the four trailing quarters, the average negative surprise being 13.11%. The earnings growth estimate for the next fiscal is pegged at -7.90%.
Moreover, Triumph Group faces intense competition from Aerospace-Defense equipment providers like HEICO Corporation (HEI - Free Report) which has outperformed the industry over the last one year.
On a brighter note, across its four business units, Triumph Group’s pipeline of addressable opportunities continues to expand. Currently, the company is tracking over 800 active opportunities worth over $16 billion. During the third quarter of fiscal 2017, Triumph Group had 55 competitive new business wins worth over $350 million.
Zacks Rank
Triumph Group currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>