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We have retained our Outperform recommendation on the aerospace giant, Triumph Group Inc. (TGI - Analyst Report), due to its strong third quarter 2013 results. The stock currently holds a Zacks Rank #2 (Buy).

Why the Reiteration?

Triumph reported a solid third quarter 2013 results with EPS of $1.46, surpassing the Zacks Consensus Estimate of $1.38, by a comfortable margin of 5.8%. The earnings also increased year over year by 13.2%. This increment was a result of a sound organic growth of the company coupled with good cost control measures taken in the quarter.

The company also reported a strong backlog of $4.1 billion exiting the third quarter 2013. This is expected to boost up the revenue generation in the upcoming quarters.

In the last thirty days, most of the estimates for fiscal 2013 have been revised upwards with none moving down. A similar trend was observed for fiscal 2014.

Triumph also acquired Embee Incorporated in December 2012, which is expected to contribute roughly $50.0 million in annual revenue. Also, subsequent to the quarter, Triumph also announced its plans to acquire Goodrich Pump & Engine Control Systems (GPECS), scheduled for completion in the current quarter. The acquisition is expected to contribute roughly $195.0 million to the annual revenue.

Moreover, the aviation market in general is expected to expand due to an increase in demand of general aviation aftermarket parts and services. Also, with an increase in energy costs, the demand for fuel-efficient jets is bound to increase. The company is likely to benefit from its fuel control and technologically advanced jets.

Other Stocks to Consider

Other stocks worth a look in the industry are Alliant Techsystems Inc. (ATK - Analyst Report), Esterline Technologies Corp. (ESL - Snapshot Report) and CAE Inc. (CAE - Snapshot Report); all of them carrying a Zacks Rank #2.

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