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Thousand Oaks, California-based Teledyne Technologies Incorporated (TDY) provides enabling technologies to sense, transmit, and analyze information for industrial growth markets. With a market cap of $22.3 billion, it serves various industries and sectors including aerospace and defense, factory automation, air and water quality environmental monitoring, energy, healthcare, and more.
Teledyne Technologies has underperformed the broader market over the past year. TDY stock is up 7.3% on a YTD basis and 19.9% over the past year, lagging behind the S&P 500 Index’s ($SPX) 26.2% gains in 2024 and 32.1% returns over the past year.
TDY stock has also underperformed the Technology Select Sector SPDR Fund’s (XLK) 22% gains on a YTD basis and 27.3% returns over the past year.
TDY stock prices surged 6% after its impressive Q3 earnings release on Oct. 23. The company achieved record orders and sales during the quarter. Teledyne has continued to observe robust demand in its longer-cycle defense, space, and energy businesses. Furthermore, sales for most of its shorter-cycle commercial businesses have stabilized or are recovering, and year-over-year comparisons have begun to ease. This has led to a 2.9% year-over-year growth in net sales to $1.4 billion, which surpassed Wall Street’s topline expectations by a notable 1.3%. Moreover, the company has also observed robust growth in profitability, with its net income to shareholders surging 31.9% year-over-year to $262 million and its adjusted EPS of $5.10 surpassing analysts’ consensus estimates by 2.6%.
For the current fiscal year, ending in December, analysts expect TDY to report a 1.2% year-over-year dip in adjusted EPS to $19.45. The company’s earnings surprise history is mixed. It has surpassed analysts’ bottom-line estimates on three of the past four quarters while missing on another occasion.
TDY stock has a consensus “Strong Buy” rating overall. Out of the eight analysts covering the stock, six recommend “Strong Buy,” one advises “Moderate Buy,” and one suggests a “Hold” rating.
This configuration is more bullish than a month ago when five analysts recommended “Strong Buy” ratings.
On Nov. 11, Needham analyst James Ricchiuti maintained a “Buy” rating while raising the price target to $550, indicating a 14.8% upside potential to current price levels.
TDY’s mean price target of $535.25 represents a premium of 11.7% to current price levels. Meanwhile, the Street-high price target of $565 suggests a potential upside of 17.9%.
