TransDigm Group had its Relative Strength (RS) Rating upgraded from 69 to 72 Tuesday — a welcome improvement, but still shy of the 80 or higher score you look for.
IBD's unique RS Rating measures technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Over 100 years of market history shows that the top-performing stocks typically have an 80 or better RS Rating as they launch their biggest climbs. See if TransDigm Group can continue to show renewed price strength and clear that threshold.
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TransDigm Group is working on a flat base with a 1,424.68 entry. See if the stock can break out in volume at least 40% above average. It's a later-stage pattern, and investors should be aware that those involve more risk.
Earnings growth decreased in the most recent quarter from 24% to 22%. But revenue gains moved higher, from 17% to 18%. The company is expected to report its latest performance numbers on or around Feb. 11.
TransDigm Group earns the No. 27 rank among its peers in the Aerospace/Defense industry group. Howmet Aerospace, Embraer ADR and Elbit Systems are among the top 5 highly rated stocks within the group.
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