Transdigm Group Incorporated Stock Buy Hold or Sell Recommendation
| TDG Stock | USD 1,346 16.28 1.22% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Transdigm Group Incorporated is 'Strong Hold'. Macroaxis provides Transdigm Group buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TDG positions.
Check out Transdigm Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Transdigm and provide practical buy, sell, or hold advice based on investors' constraints. Transdigm Group Incorporated. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.
Transdigm |
Execute Transdigm Group Buy or Sell Advice
The Transdigm recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Transdigm Group Incorporated. Macroaxis does not own or have any residual interests in Transdigm Group Incorporated or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Transdigm Group's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Transdigm Group Trading Alerts and Improvement Suggestions
| Transdigm Group has a poor financial position based on the latest SEC disclosures | |
| Over 97.0% of the company shares are owned by institutional investors |
Transdigm Group Returns Distribution Density
The distribution of Transdigm Group's historical returns is an attempt to chart the uncertainty of Transdigm Group's future price movements. The chart of the probability distribution of Transdigm Group daily returns describes the distribution of returns around its average expected value. We use Transdigm Group Incorporated price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Transdigm Group returns is essential to provide solid investment advice for Transdigm Group.
| Mean Return | 0.09 | Value At Risk | -2.21 | Potential Upside | 2.15 | Standard Deviation | 1.43 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Transdigm Group historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Transdigm Group Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Transdigm Group or Aerospace & Defense sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Transdigm Group's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Transdigm stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.09 | |
β | Beta against Dow Jones | 0.08 | |
σ | Overall volatility | 1.43 | |
Ir | Information ratio | 0.13 |
Transdigm Group Volatility Alert
Transdigm Group Incorporated has relatively low volatility with skewness of -0.09 and kurtosis of -0.54. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Transdigm Group's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Transdigm Group's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Transdigm Group Fundamentals Vs Peers
Comparing Transdigm Group's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Transdigm Group's direct or indirect competition across all of the common fundamentals between Transdigm Group and the related equities. This way, we can detect undervalued stocks with similar characteristics as Transdigm Group or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Transdigm Group's fundamental indicators could also be used in its relative valuation, which is a method of valuing Transdigm Group by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Transdigm Group to competition |
| Fundamentals | Transdigm Group | Peer Average |
| Return On Asset | 0.11 | -0.14 |
| Profit Margin | 0.22 % | (1.27) % |
| Operating Margin | 0.49 % | (5.51) % |
| Current Valuation | 96.92 B | 16.62 B |
| Shares Outstanding | 56.08 M | 571.82 M |
| Shares Owned By Insiders | 0.39 % | 10.09 % |
| Shares Owned By Institutions | 96.83 % | 39.21 % |
| Number Of Shares Shorted | 1.02 M | 4.71 M |
| Price To Earning | 92.83 X | 28.72 X |
| Price To Sales | 9.15 X | 11.42 X |
| Revenue | 7.94 B | 9.43 B |
| Gross Profit | 4.89 B | 27.38 B |
| EBITDA | 3.87 B | 3.9 B |
| Net Income | 1.72 B | 570.98 M |
| Cash And Equivalents | 3.47 B | 2.7 B |
| Cash Per Share | 70.27 X | 5.01 X |
| Total Debt | 24.9 B | 5.32 B |
| Debt To Equity | 5.42 % | 48.70 % |
| Current Ratio | 4.69 X | 2.16 X |
| Book Value Per Share | (111.59) X | 1.93 K |
| Cash Flow From Operations | 2.04 B | 971.22 M |
| Short Ratio | 3.83 X | 4.00 X |
| Earnings Per Share | 28.36 X | 3.12 X |
| Price To Earnings To Growth | 4.03 X | 4.89 X |
| Target Price | 1505.15 | |
| Number Of Employees | 16.6 K | 18.84 K |
| Beta | 1.38 | -0.15 |
| Market Capitalization | 74.6 B | 19.03 B |
| Total Asset | 25.59 B | 29.47 B |
| Retained Earnings | (7.36 B) | 9.33 B |
| Working Capital | 3.69 B | 1.48 B |
| Current Asset | 2.93 B | 9.34 B |
| Current Liabilities | 752.6 M | 7.9 B |
Note: Disposition of 261 shares by Robert Small of Transdigm Group at 1341.0912 subject to Rule 16b-3 [view details]
Transdigm Group Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Transdigm . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Transdigm Group Buy or Sell Advice
When is the right time to buy or sell Transdigm Group Incorporated? Buying financial instruments such as Transdigm Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Transdigm Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Transdigm Group. If investors know Transdigm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Transdigm Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Transdigm Group is measured differently than its book value, which is the value of Transdigm that is recorded on the company's balance sheet. Investors also form their own opinion of Transdigm Group's value that differs from its market value or its book value, called intrinsic value, which is Transdigm Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Transdigm Group's market value can be influenced by many factors that don't directly affect Transdigm Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Transdigm Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Transdigm Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Transdigm Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.