Here's Why TransDigm Group (TDG) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1] - The Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score emphasizes a company's financial health and future growth potential [4] - Momentum Score helps investors capitalize on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with attractive value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings forecasts [10] Company Spotlight: TransDigm Group - TransDigm Group is a prominent designer and supplier of aerospace components for commercial and military aircraft, with a diversified product range [11] - Currently rated 3 (Hold) by Zacks, TransDigm has a VGM Score of B and a Momentum Style Score of A [11][12] - The stock has seen a 4.6% increase over the past four weeks, with upward revisions in earnings estimates for fiscal 2025 [12] - The Zacks Consensus Estimate for TransDigm's earnings has risen by $0.08 to$37.27 per share, with an average earnings surprise of 6.5% [12]