Triumph Group, Inc. TGI, with rising earnings estimates, better solvency, strong liquidity and robust backlog, offers a great investment opportunity in the Zacks Aerospace Defense Equipment industry.

Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.

TGI’s Growth Projections & Surprise History
 

The Zacks Consensus Estimate for TGI’s fiscal 2025 and 2026 earnings per share (EPS) has increased 3% and 5.1%, respectively, over the past 60 days.

The Zacks Consensus Estimate for its fiscal 2026 revenues is pegged at $1.32 billion, which indicates a year-over-year increase of 11.5%.

TGI delivered an average earnings surprise of 159.38% in the trailing four quarters.

TGI’s Solvency
 

TGI’s times interest earned ratio (TIE) at the end of the third quarter of fiscal 2025 was 1.2. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.

TGI’s Liquidity
 

TGI’s current ratio at the end of the third quarter of fiscal 2025 was 2.50, higher than the industry’s average of 1.68. The ratio being greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.

TGI’s Solid Backlog
 

Triumph Group has been receiving a constant stream of orders from its diversified customer base. Due to its wide range of superior products, the company keeps receiving orders from manufacturers of commercial aircraft and other military agencies worldwide, expanding its order book. This must have led to a solid backlog of $1.87 billion as of Dec. 31, 2024.

TGI Stock Price Performance
 

In the past three months, TGI shares have rallied 36.8% compared with its industry’s return of 1.8%.

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Other Stocks to Consider
 

A few other top-ranked stocks from the same sector are HEICO Corporation HEI, Leidos Holdings, Inc. LDOS and TransDigm Group Inc. TDG, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HEI’s long-term (three to five years) earnings growth rate is pegged at 17%. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $4.37, which suggests a year-over-year rise of 19.1%.

Leidos’ long-term earnings growth rate is 7.4%. The Zacks Consensus Estimate for 2025 EPS is pegged at $10.49, which implies an improvement of 2.7% from the 2024 reported figure.

TransDigm Group’s earnings growth rate is pegged at 13.5%. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $37.21, which indicates year-over-year growth of 9.5%.

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Triumph Group, Inc. (TGI) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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