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Here's Why You Should Add TDY Stock to Your Portfolio Right Now

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Key Takeaways

  • TDY shows solid investment appeal with strong aerospace exposure, low debt and healthy liquidity.
  • TDY delivered an average earnings surprise of 2.75% over the past four quarters.
  • TDY benefits from rising defense spending, air travel recovery and strategic acquisitions.

Teledyne Technologies’ (TDY - Free Report) robust presence in the aerospace market, solid liquidity and low debt are strong upsides. Given its growth prospects, TDY makes for a solid investment option in the Aerospace sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.

Growth Projections & Surprise History of TDY

The Zacks Consensus Estimate for 2026 earnings per share is pegged at $23.81, which indicates year-over-year growth of 10.7%.

The consensus estimate for 2026 sales stands at $6.35 billion, which suggests a year-over-year jump of 4.6%.

TDY’s long-term (three-to-five years) earnings growth rate is 9.9%.

It delivered an average earnings surprise of 2.75% in the last four quarters.

TDY Stock’s Debt Position

Currently, the company’s total debt-to-capital is 19.35%, better than the industry’s average of 43.68%.

TDY’s times interest earned (TIE) ratio at the end of the third quarter of 2025 was 17.32. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.

TDY’s Liquidity

TDY’s current ratio at the end of the third quarter of 2025 was 1.79. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.

TDY’s Improving Defense and Aerospace Business Outlook

Teledyne is well-positioned to benefit from rising global defense spending amid ongoing geopolitical tensions. Increased U.S. budget allocations for defense, including higher funding for space, naval and advanced military programs, support demand for Teledyne’s engineered systems used in space applications and its undersea interconnect solutions for naval defense. Strong defense spending in Europe is also driving growth, with the company generating nearly $500 million in revenues from the region.

At the same time, a steady recovery in commercial air travel is supporting Teledyne’s aerospace business. Higher aftermarket sales, strong OEM orders for future deliveries and robust growth in the Aerospace and Defense Electronics segment continue to lift results. Strategic acquisitions, including Maretron and Saab’s TransponderTech business, are further expanding Teledyne’s product portfolio and market reach, adding incremental revenues and strengthening its long-term growth prospects across defense, aerospace and marine end markets.

TDY Stock Price Performance

Shares of TDY have gained 15.1% in the past year compared with the industry’s 41.4% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Other top-ranked stocks from the same industry are AAR Corp. (AIR - Free Report) , CurtissWright (CW - Free Report) and Woodward (WWD - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AAR delivered an average earnings surprise of 11.26% in the last four quarters. The Zacks Consensus Estimate for AIR’s fiscal 2026 sales is pinned at $3.14 billion, which indicates year-over-year growth of 12.9%.

CurtissWright delivered an average earnings surprise of 7.75% in the last four quarters. The consensus estimate for CW’s 2026 sales is pegged at $3.68 billion, which calls for year-over-year growth of 6.9%.

Woodward delivered an average earnings surprise of 14.66% in the last four quarters. The Zacks Consensus Estimate for WWD’s 2026 sales stands at $4.25 billion, which implies year-over-year growth of 7.3%.

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