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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) have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 4.2% and 5.5% during the said period, respectively.

Teledyne Technologies provides instrumentation, digital imaging, aerospace and defense electronics along with engineered systems in the United States, the U.K., Denmark, Canada, France and the Netherlands.

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

Zacks Rank &Surprise History

The stock currently sports a Zacks Rank #1 (Strong 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 10.65%.

Earnings Estimate Revision

Teledyne Technologies’ earnings estimates for 2019 and 2020 have moved up 5.63% and 9.17% on a year-over-year basis to $9.38 and $10.24, respectively.The company’s 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.

Price Movement

In the past 12 months, Teledyne Technologies’ shares have rallied 31.6% compared with the industry’s rise of 6.7%.

Solid Backlog

Higher contract wins from the Pentagon as well as other U.S. allies for cost-effective defense solutions are primary growth catalysts for Teledyne Technologies. In fact, the contract wins bolster the company’s backlog. As of Dec 31, 2018, it had a funded backlog of $1,568.8 million compared with $1,250.2 million at Dec 31, 2017.An impressive backlog trend indicates favorable revenue growth prospects for the company in the upcoming quarters.

Other Key Picks

Some other top-ranked stocks from the same industryare Triumph Group, Inc (TGI - Free Report) , AeroVironment, Inc (AVAV - Free Report) and Heico Corporation (HEI - Free Report) . Triumph Group sports a Zacks Rank of 1, while AeroVironment and Heico holds a Zacks Rank of 2 (Buy).

Triumph Group pulled off an average positive earnings surprise of 1.64% in the last four quarters. The company’s long-term earnings growth is pegged at 4.80%

AeroVironment came up with an average positive earnings surprise of 294.51% in the last four quarters. The company’s long-term earnings growth is pegged at 25%

Heico pulled off an average positive earnings surprise of 4.80% in the last four quarters. The company’s long-term earnings growth is pegged at 12.10%

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