Why TransDigm Group (TDG) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings outlook changes, utilizing metrics like one-week price change and monthly earnings estimate percentage change [4] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that evaluates stocks based on value, growth, and momentum characteristics [5] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [6][7] Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while stocks with a 3 rank should also have high Style Scores to ensure potential upside [8][9] Company Spotlight: TransDigm Group - TransDigm Group is a leading global designer and supplier of aerospace components, currently holding a 3 (Hold) Zacks Rank with a VGM Score of B [10] - The company is positioned as a growth investment, with a Growth Style Score of B and a projected year-over-year earnings growth of 29.3% for the current fiscal year, supported by upward revisions in earnings estimates [11]