Shares of aerospace and defense company TransDigm (NYSE:TDG)
fell 12.5% in the afternoon session after the company reported third-quarter financial results that fell short of analyst expectations for both revenue and earnings.
Join us in exploring the top gainers and losers within the S&P500 index in the middle of the day on Tuesday as we examine the latest happenings in today's session.
Wondering what's happening in today's session regarding gap up and gap down stocks? Explore the S&P500 index on Tuesday to uncover the stocks that are gapping in the S&P500 index.
Aerospace and defense company TransDigm (NYSE:TDG) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 9.3% year on year to $2.24 billion. The company’s full-year revenue guidance of $8.79 billion at the midpoint came in 0.9% below analysts’ estimates. Its non-GAAP profit of $9.60 per share was 3.1% below analysts’ consensus estimates.
Whether you see them or not, industrials businesses play a crucial part in our daily activities. Still, their generally high capital requirements expose them to the ups and downs of economic cycles,
and the industry’s six-month return of 3% has fallen short of the S&P 500’s 5.4% rise.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at aerospace stocks, starting with TransDigm (NYSE:TDG).
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Since June 2020, the S&P 500 has delivered a total return of 88%. But one standout stock has more than doubled the market - over the past five years, TransDigm has surged 217% to $1,460 per share. Its momentum hasn’t stopped as it’s also gained 15.7% in the last six months, beating the S&P by 16.3%.
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution.
While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
