3 Reasons Why Growth Investors Shouldn't Overlook TransDigm (TDG)

Core Viewpoint - The article highlights TransDigm Group (TDG) as a promising growth stock, supported by its strong earnings and cash flow growth, as well as positive earnings estimate revisions, making it a solid choice for growth investors [2][9]. Earnings Growth - TransDigm has a historical EPS growth rate of 14.7%, with projected EPS growth of 21.5% for the current year, surpassing the industry average of 16.8% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 47.7%, significantly higher than the industry average of 7.6%. Its annualized cash flow growth rate over the past 3-5 years stands at 8.3%, compared to the industry average of 5.4% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for TransDigm, with the Zacks Consensus Estimate for the current year increasing by 1.4% over the past month [8]. Overall Assessment - TransDigm has achieved a Growth Score of B and holds a Zacks Rank 2 due to favorable earnings estimate revisions, indicating its potential as an outperformer in the growth investment space [9].