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Here's Why You Should Add Teledyne Technologies (TDY) Stock

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Solid backlog, strategic buyouts in digital imaging market and expanding prospects in instrumentation is likely to boost Teledyne Technologies Incorporated’s (TDY - Free Report) growth.

Earnings estimates for 2019 and 2020 have moved up 12.05% and 10.35% on a year-over-year basis to $9.95 and $10.98, respectively. Revenue estimates for 2019 and 2020 rose 6.79% and 4.16% on a year-over-year basis to $3.10 billion and $3.23 billion, respectively.

Let’s focus on the factors that make the stock an appropriate pick at the moment.

Zacks Rank & Surprise History

The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has an average four-quarter positive earnings surprise of 9.26%.

Price Performance & Long-Term Growth

In the past 12 months, Teledyne Technologies’ shares have rallied 28.8% compared with the industry’s rise of 10.8%.



The company’s long-term (3 to 5 years) earnings growth is pegged at 7.50%.

Debt/Capital &Current Ratio

Teledyne Technologies is consistently striving to preserve balance-sheet strength. Currently, the company has a current ratio of 1.63. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 23.93%, lower than the Zacks S&P 500 composite’s 43.30%.

Favorable Budget

The U.S. administration is in favor of higher defense spending. Macroeconomic environment in the nation is boosting the company’s prospects. Impressively, President Trump proposed defense spending of $750 billion for fiscal 2020, which reflects 4.4% increase from the current defense budget. Increase in spending provisions, on approval, is likely to drive order growth for defense contractors like Teledyne Technologies.

Other Key Picks

Some other top-ranked stocks from the same sector are Aerojet Rocketdyne Holdings, Inc , Transdigm Group Incorporated (TDG - Free Report) and HEICO Corporation (HEI - Free Report) . Aerojet Rocketdyne and Transdigm Group sport a Zacks Rank of 1,while HEICO holds a Zacks Rank #2 (Buy).

Aerojet Rocketdyne pulled off an average positive earnings surprise of 25.46% in the last four quarters. The company’s long-term earnings growth is pegged at 5.50%

Transdigm Group came up with an average positive earnings surprise of 10.71% in the last four quarters. The company’s long-term earnings growth is pegged at 12.60%

HEICO pulled off an average positive earnings surprise of 9.47% in the last four quarters. The company’s long-term earnings growth is pegged at 13.95%

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