Indicators argue for a technical correction after the last bullish movement recorded in past sessions.
From a fundamental viewpoint the financial structure shows weaknesses. The security seems highly overvalued compared to other securities in its sector with a P/E ratio of 23.14x for 2013 and 20.21x for 2014. The continued downward revisions on EPS during the last 6 months create some visibility problem on the stock.
Graphically, the share is in a period of technical rebound that allowed it to reach the USD 157.9 mid-term resistance. This area could trigger a sell signal for investors in case of profit-taking. The USD 149.1 support area will be considered as a potential target in the coming sessions.
Therefore, the proximity of mid-term resistance suggests a consolidation or a correction phase in the coming sessions. The most offensive investors will open a short position close to USD 157.9 to target a return on the USD 149.1 support. It should protect the position with a stop loss set above USD 157.9.
TransDigm Group Inc. specializes in the design, manufacturing and marketing of aerospace systems and components. Net sales break down by family of products as follows:
- engine components and control systems (50.3%): mechanical and electromechanical actuators and control systems, pumps and engine control systems, power regulators, ignition systems, thermal management systems, fluid management systems, batteries and power supply systems, motion sensors, data recording, analysis and processing systems, etc. The group also offers winches, lifting systems and cargo handling systems;
- cabin systems and equipment (47%): cockpit safety components and systems, locking systems and devices, connectors, audio control systems, specialized sanitary equipment, seat belts and safety devices, interior fittings (seats, display systems, on-board entertainment systems, etc.) lighting systems, parachutes, freight delivery systems, etc. ;
- other (2.7%): non-aeronautical systems and equipment.
At the end of September 2023, the group operated approximately 100 production sites worldwide.
The United States accounts for 64.8% of net sales.
TRANSDIGM GROUP INC. 
