Valued at a market cap of approximately $71 billion, Ohio-based TransDigm Group Incorporated (TDG) stands at the forefront of the aerospace industry as a premier designer and supplier of highly engineered aircraft components. Its expansive portfolio includes critical components like actuators, ignition systems, power conditioning devices, specialized pumps, advanced cockpit displays, and a wide array of safety and performance products.

But, shares of this aircraft component manufacturer appear to be lagging behind the broader market. Over the past year, TDG has gained roughly 28%, slightly overpowered by the broader S&P 500 Index’s ($SPX) 31.8% annual return during the same time frame. Meanwhile, in 2024, the stock is up 23.5% compared to SPX’s 25.8% YTD growth. 

However, when narrowing the focus, the stock seems to have soared beyond the iShares Global Industrials ETF’s (EXI) 26.9% return over the past 52 weeks and 17.8% gain on a YTD basis.

Following the company’s fiscal 2024 Q4 earnings results revealed on Nov. 7, which blew past both Wall Street’s top and bottom line projections, shares of TransDigm closed up more than 1% in two of its consecutive trading sessions. During the quarter, the company’s net sales of $2.2 billion jumped an impressive 18% year over year and narrowly edged past Street forecasts, while its adjusted EPS of $9.83 also demonstrated a notable 22% year-over-year improvement and comfortably sailed past estimates by almost 6%. 

For the current fiscal year, ending in September 2025, analysts expect TDG’s EPS to increase 9.8% year over year to $34.86. The company’s earnings surprise history is impressive. It surpassed the consensus estimates in each of the last four quarters. 

Among the 21 analysts covering the stock, the consensus view is a “Strong Buy,” which is based on 15 “Strong Buy,” one “Moderate Buy,” and five “Hold” ratings.  This configuration has remained fairly steady over the past three months. 

On Nov. 14, J.P. Morgan (JPM) cut TDG’s price target from $1555 to $1500 and maintained a “Neutral” rating on the stock. This newly issued target by J.P. Morgan implies a potential upside of nearly 20.1% from current price levels. 

Meanwhile, the average analyst price target of $1499.65 also indicates a modest 20% potential upside from the current price levels. However, the Street-high price target of $1660 suggests that TDG could rally as much as 32.9% from here.