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Here's Why You Should Add Teledyne Technologies (TDY) Stock

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Earnings estimates for Teledyne Technologies Incorporated (TDY - Free Report) for 2019 and 2020 have moved up 6.64% and 11.19% on a year-over-year basis to $9.47 and $10.53, respectively. Revenue estimates for 2019 and 2020 rose 6.69% and 4.17% on a year-over-year basis to $3.10 billion and $3.23 billion, respectively.

Let’s focus on the factors that make the stock an appropriate pick at the moment.

Zacks Rank &Surprise History

The stock currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has an average four-quarter positive earnings surprise of 6.79%.

Price Performance & Long-Term Growth

In the past 12 months, Teledyne Technologies’ shares have rallied 26.5% compared with the industry’s rise of 13.8%.

The company’s long-term (3 to 5 years) earnings growth is pegged at 7.50%.

Debt/Capital &Current Ratio

Teledyne Technologies is consistently striving to preserve balance-sheet strength. Currently, the company has a current ratio of 1.54. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 23.57%, lower than the Zacks S&P 500 composite’s level of 43.02% and the industry’s 28.59%.

Solid Backlog

Higher contract wins from the Pentagon and other U.S. allies for cost-effective defense solutions are growth drivers and boost Teledyne Technologies' backlog. Sales in each segment and major product categories increased during the first quarter of 2019. Backlog continued to grow as orders exceeded sales for the fifth consecutive quarter. An impressive backlog trend indicates revenue growth in the upcoming quarters.

Other Key Picks

Some other top-ranked stocks from the same industry are Aerojet Rocketdyne Holdings, Inc , Astronics Corporation (ATRO - Free Report) and Heico Corporation (HEI - Free Report) . All the three stocks sport a Zacks Rank of 1(Strong Buy).

Aerojet Rocketdyne pulled off an average positive earnings surprise of 36.67% in the last four quarters. The company’s long-term earnings growth is pegged at 5.50%

Astronics came up with an average positive earnings surprise of 22.55% in the last four quarters. The company’s long-term earnings growth is pegged at 10%

Heico pulled off an average positive earnings surprise of 9.47% in the last four quarters. The company’s long-term earnings growth is pegged at 12.10%

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