Topic: How To Invest

Q: I have profited from your advice over the years. What’s your recommendation on TransDigm Group? Thanks.

Article Excerpt

A: TransDigm Group Inc., $1,366.53, symbol TDG on New York (Shares outstanding: 56.0 million; Market cap: $77.0 billion; www.transdigm.com) designs, produces, and supplies engineered components for use in commercial and military aircraft. Its products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, and specialized pumps and valves. The company continues to make acquisitions to expand its operations. In May 2023, TransDigm completed the purchase of Calspan Corp., a Buffalo, New York-based testing and technology service provider for the aerospace, defence and automotive industries. The purchase price was $725 million. Calspan operates seven facilities in the U.S., including a state-of-the-art transonic wind tunnel in Buffalo. It generated $200 million in revenue for 2023. Calspan should be a good fit for TransDigm: it strengthens TransDigm’s aftermarket offerings in aerospace and defence. In June 2024, TransDigm completed acquisition of the electron device business of Communications and Power Industries; it paid $1.39 billion in cash. That business manufactures electronic components and subsystems for the aerospace and defence…