What changed
$TDG — WATCHLIST 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $2.5B | EPS $9.85 vs $9.47 🟢 | Margin 46.3%
💡 Consensus expects FY EPS of ~$40, implying modest growth. The beat was in-line with historical pattern, suggesting no meaningful surprise. The market correctly prices in TDG's quality, leaving little room for positive surprise without acceleration in organic growth or accretive deals.
📉 Reward/risk: 2.5:1
🏢 Business Quality: 9/10 - TDG is a best-in-class aerospace components company with proprietary products, sole-source positions, high switching costs, industry-leading margins (gross margin 59%, op margin 46%), and a proven M&A strategy.
📊 Valuation: rich - Trading at ~31x forward P/E and ~19x EV/EBITDA, above historical averages (P/E 25-28x range), and in line with premium peers.
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/TDG0612