Stock of the Day

January 21, 2020

Teledyne Technologies (TDY)

$491.27
-$9.72 (-1.9%)
Market Cap: $23.35B

About Teledyne Technologies

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.

Teledyne Technologies Bull Case

Here are some ways that investors could benefit from investing in Teledyne Technologies Incorporated:

  • The company reported earnings per share (EPS) of $5.52, exceeding analysts' expectations of $5.23, indicating strong financial performance and effective management.
  • Teledyne Technologies Incorporated achieved a revenue of $1.50 billion, surpassing the consensus estimate of $1.45 billion, showcasing its ability to grow and capture market share.
  • With a current stock price of $504.38, the shares are trading near their 52-week high of $522.50, suggesting strong investor confidence and potential for further appreciation.
  • Analysts have set an average price target of $538.00 for the stock, with several brokerages upgrading their ratings to "buy," indicating positive sentiment and potential upside.
  • The company has a solid return on equity of 9.94% and a net margin of 14.45%, reflecting efficient operations and profitability, which are attractive metrics for investors.

Teledyne Technologies Bear Case

Investors should be bearish about investing in Teledyne Technologies Incorporated for these reasons:

  • Insider selling has been significant, with company insiders selling 32,190 shares valued at $16,386,864 in the last quarter, which may raise concerns about the company's future prospects.
  • The stock has experienced a recent decline of 0.8%, which could indicate potential volatility and uncertainty in the market.
  • Despite recent growth, the company has a price-to-earnings (P/E) ratio of 29.27, which may be considered high, suggesting that the stock could be overvalued compared to its earnings.
  • Teledyne Technologies Incorporated has a beta of 1.03, indicating that its stock price is slightly more volatile than the market, which could pose risks for conservative investors.
  • Company insiders now own only 2.14% of the stock, which may suggest a lack of confidence from those closest to the company regarding its future performance.

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