Yahoo Finance Here's How Much a $1000 Investment in TransDigm Group Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in TransDigm Group (TDG) ten years ago? It may not have been easy to hold on to TDG for all that time, but if you did, how much would your investment be worth today?
TransDigm Group's Business In-Depth
With that in mind, let's take a look at TransDigm Group's main business drivers.
Incepted in 1993, TransDigm Group is a leading global designer, producer and supplier of highly engineered aerospace components that are used in commercial and military aircraft. The company, through its well-diversified business, offers a broad range of products to its customers. TransDigm currently has four reportable segments:
The Airframe segment produces systems and components like engineered latching and locking devices, security components and systems, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, military personnel parachutes and cargo delivery systems. These are used in non-power airframe applications utilizing airframe and cabin structure technologies.It contributed 47% to the company's total sales in fiscal 2023.
The Power & Control segment develops products like mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, and lifting devices and cargo loading and handling systems. These are used in controlling power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. It contributed 50.3% to the company's total sales in fiscal 2023.
The Non-aviation segment's products include seat belts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, and refueling systems for heavy equipment used in mining, construction and other industries. It contributed 2.7% to the company's total sales in fiscal 2023.
Esterline Technologies became a reportable segment of TransDigm, post its acquisition in March 2019. Notably, Esterline includes a collection of approximately 20 reporting units that primarily develop, produce and market products for the aerospace and defense industry. Each Esterline reporting unit is included in one of TransDigm's segments.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in TransDigm Group ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in May 2014 would be worth $7,071.88, or a gain of 607.19%, as of May 23, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 180.42% and the price of gold went up 76.55% over the same time frame.
Looking ahead, analysts are expecting more upside for TDG.
TransDigm ended second-quarter fiscal 2024 on an impressive note, with both its earnings and revenues surpassing the Zacks Consensus Estimate. Being, an equipment supplier of renowned military jet makers, the company should gain from the enhanced U.S. defense budget. Thanks to steadily growing air traffic, its commercial aftermarket revenues witnessed an 8% year-over-year improvement in the fiscal second quarter. This trend is expected to continue to boost TransDigm’s growth in fiscal 2024. The company boasts a solid solvency position. In the past year, its shares have outperformed the industry. However, rising jet fuel prices and supply-chain constraints continue to affect the commercial aerospace industry and, thereby, may hurt TransDigm’s results. The stock is expensive compared to its industry.
Shares have gained 6.81% over the past four weeks and there have been 8 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
