- Should You Buy, Hold or Sell ISSC Stock Ahead of Q2 Earnings?
May 12, 2026
Innovative Solutions and Support ISSC is slated to release second-quarter fiscal 2026 results on May 14, 2026, before market open.
The Zacks Consensus Estimate for earnings is pegged at 20 cents per share, suggesting a decline of 33.3% from the prior-year quarter’s reported figure of 30 cents. The consensus estimate for sales is pegged at $22.2 million, suggesting an improvement of 1.1% from the prior-year quarter’s reported figure of $21.9 million.Zacks Investment Research
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ISSC’s earnings beat estimates in two of the three trailing quarters, the average surprise being 106.94%.Zacks Investment Research
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Earnings Whisper for ISSC Stock
Our proven model does not conclusively predict an earnings beat for ISSC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ISSC has an Earnings ESP of 0.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Defense Releases
TransDigm Group Incorporated TDG reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Teledyne Technologies Inc. TDY reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
TDY’s total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Key Factors to Consider for ISSC’s Q2 Results
Higher commercial aftermarket sales are likely to have bolstered ISSC’s second-quarter sales.
Higher service volumes related to the IRUs and radio product lines are also likely to have bolstered ISSC’s sales in the to-be-reported quarter.
In February 2026, the company acquired the Moog S-TEC Model 3100 general aviation fixed-wing autopilot product line, which is likely to have supported its sales growth in the to-be-reported quarter. The acquisition expanded the company’s integrated flight control capabilities and strengthened its portfolio of advanced avionics and mission-critical aerospace systems.
Story Continues
Price Performance & Valuation
ISSC’s shares have surged a solid 188.3% in the past year, outperforming the Zacks Aerospace-Defense Equipment industry’s growth of 26.5% as well as the broader Zacks Aerospace sector’s rise of 12.6%. It also came in above the S&P 500’s gain of 30.7% in the same time frame.Zacks Investment Research
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Shares of TransDigm Group and Teledyne Technologies have lost 15.7% and gained 26.6%, respectively.
From a valuation perspective, ISSC’s forward 12-month price-to-sales (P/S) is 4.01X, a discount to its industry’s average of 12.09X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry.Zacks Investment Research
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Its industry peers are currently trading at a premium compared with ISSC. While the forward 12-month price/sales multiple for TransDigm Group is 6.33X, the same for Teledyne Technologies is 4.40X.
Investment Thesis
Despite challenges such as supply-chain disruptions, inflationary pressure on raw materials and labor costs, and ongoing macroeconomic uncertainties, Innovative Solutions continues to benefit from solid demand across the aerospace and defense markets. The company’s expanding portfolio of advanced avionics, flight control and communication systems positions it well to capitalize on rising aircraft modernization and upgrade activities.
ISSC’s strategic acquisitions, including the February 2026 purchase of the Moog S-TEC Model 3100 autopilot product line, are expected to strengthen its integrated flight control capabilities and support long-term revenue growth. In addition, healthy demand from both commercial and military customers, along with improving air travel trends, should continue to drive the company’s financial performance.
Backed by strong growth opportunities in the aerospace sector, expanding product offerings and favorable market demand, ISSC currently appears well-positioned.
What Should an Investor do Now?
ISSC appears well-positioned ahead of its fiscal second-quarter results, supported by strength in commercial aftermarket sales, contributions from recently acquired product lines and healthy demand across the aerospace and defense markets. The company’s strong stock price performance over the past year also reflects improving investor confidence and solid fundamentals.
Strategic acquisitions are expected to support long-term growth by expanding ISSC’s avionics and flight control capabilities. Supported by favorable market demand, growth opportunities and an attractive valuation, ISSC stock appears to be a solid choice for investors right now.
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- Should You Buy, Hold or Sell Astronics Stock Ahead of Q1 Earnings?
May 11, 2026
Astronics Corporation ATRO is slated to release first-quarter 2026 results on May 12, 2026, after market close.
The Zacks Consensus Estimate for earnings is pegged at 55 cents per share, suggesting an improvement of 25% from the prior-year quarter’s reported figure of 44 cents. The consensus estimate for sales is pegged at $222.8 million, suggesting an improvement of 8.2% from the prior-year quarter’s reported figure of $205.9 million.Zacks Investment Research
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ATRO has an impressive earnings surprise history. Its earnings beat estimates in each of the four trailing quarters, the average surprise being 31.72%.Zacks Investment Research
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Earnings Whisper for ATRO Stock
Our proven model does not conclusively predict an earnings beat for ATRO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ATRO has an Earnings ESP of 0.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Defense Releases
TransDigm Group Incorporated TDG reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Teledyne Technologies Inc. TDY reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
TDY’s total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Key Factors to Consider for ATRO’s Q1 Results
Higher commercial transport sales, backed by increased demand for cabin power and in-flight entertainment as well as connectivity products from the airlines, as a result of rapidly growing global commercial air traffic, are likely to have bolstered ATRO’s Aerospace business segment’s sales. Higher sales from military aircraft markets, driven by increased demand for lighting and safety products, are also likely to have bolstered this unit’s sales in the to-be-reported quarter.
Lower sales of radio test sets are likely to have impacted Astronics’ Test Systems unit.
Strong sales performance from ATRO’s Aerospace businesses, which constitute approximately 90% of its total revenues, is also likely to have boosted its overall top-line performance in the quarter.
Factors like strong gross profit margin expansion earned from continued sales volume growth and favorable operating leverage in the Aerospace unit are expected to have bolstered ATRO’s first-quarter earnings.
Story Continues
Price Performance & Valuation
Astronics’ shares have surged a solid 157.2% in the past year, outperforming the Zacks Aerospace-Defense Equipment industry’s growth of 25.9% as well as the broader Zacks Aerospace sector’s rise of 12.1%. It also came in above the S&P 500’s gain of 31.8% in the same time frame.Zacks Investment Research
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Shares of TransDigm Group and Teledyne Technologies have lost 14.3% and gained 25.8%, respectively.
From a valuation perspective, ATRO’s forward 12-month price-to-sales (P/S) is 2.72X, a discount to its industry’s average of 11.98X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry.Zacks Investment Research
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Its industry peers are currently trading at a premium compared with ATRO. While the forward 12-month price/sales multiple for TransDigm Group is 6.33X, the same for Teledyne Technologies is 4.40X.
Investment Thesis
Although growth prospects in the global aerospace and defense industry remain strong, Astronics continues to face a few challenges that investors should watch closely. These include ongoing supply-chain issues, rising raw material and labor costs, as well as a shortage of skilled workers.
Despite these headwinds, the continued recovery and expansion of global commercial air travel remain major growth drivers for ATRO. The company’s upcoming first-quarter results are expected to reflect these positive trends, supported by healthy revenue and earnings growth.
In addition, Astronics has a solid presence in the defense market, which helps diversify its business and offers stability during periods of market uncertainty.
What Should an Investor do Now?
ATRO appears well-positioned ahead of its first-quarter results, supported by expectations of year-over-year earnings growth, strong momentum in its Aerospace segment and an impressive earnings surprise history. The company has also delivered strong stock price performance over the past year, reflecting improving investor confidence and solid business fundamentals.
Strength in commercial aerospace demand, supported by growing global air travel and higher demand for cabin power, connectivity and safety products, is expected to drive its quarterly performance. Combined with its diversified presence in the defense market, these factors make Astronics an attractive stock. Investors looking for exposure in the aerospace and defense sector may consider adding ATRO stock to their portfolios right now.
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- AVAV Slides 28.4% in 3 Months: Buy, Hold or Take Profits?
May 11, 2026
AeroVironment, Inc. AVAV shares have fallen 28.4% over the past three months, underperforming the Zacks Aerospace-Defense Equipment industry’s decline of 0.1%. However, the company is gaining from strong defense spending trends and a robust backlog position. Strategic acquisitions are further enhancing AeroVironment’s manufacturing, propulsion and unmanned systems capabilities, supporting stronger long-term growth visibility.Zacks Investment Research
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In contrast, some stocks from the same industry, such as Teledyne Technologies Inc. TDY and TransDigm Group Inc. TDG, have also underperformed the industry. Over the past three months, shares of TDY and TDG have declined 3.9% and 6.2%, respectively.
With AVAV shares falling over the past three months, investors may be reassessing the stock’s outlook. Let’s examine the key factors shaping its performance and evaluate its investment prospects.
Tailwinds Supporting AVAV’s Growth
AeroVironment continues to benefit from rising U.S. and allied defense spending focused on uncrewed systems, loitering munitions and advanced mission technologies. The company generates a significant portion of revenues from government and defense contracts, supported by flexible structures such as IDIQ and Other Transaction Authority agreements that help accelerate deployment timelines and strengthen long-term customer relationships. Its Precision Strike & Defensive Systems business remains a major growth driver, aided by the increasing demand for Switchblade systems and related battlefield technologies.
AeroVironment exited third-quarter fiscal 2026 with a funded backlog of $1.1 billion, while fiscal year-to-date bookings reached $2.1 billion, reflecting strong order momentum. The company also highlighted total awards of $4.5 billion during the first nine months of fiscal 2026, providing solid revenue visibility heading into fiscal 2027. The company’s strong backlog profile, combined with a healthy book-to-bill ratio, supports continued demand visibility across its defense and autonomous systems portfolio.
AeroVironment is expanding its aerospace and manufacturing capabilities through strategic acquisitions. In March 2026, the company acquired Empirical Systems Aerospace, Inc. (ESAero), a producer of unmanned aircraft systems and advanced air mobility platforms. ESAero’s expertise in electric and hybrid propulsion, rapid prototyping and advanced manufacturing is expected to strengthen AeroVironment’s drone and loitering munition capabilities while supporting long-term growth across next-generation defense technologies.
Story Continues
Challenges Ahead of AVAV Stock
AeroVironment remains heavily dependent on contracts from U.S. defense agencies, making its revenues vulnerable to shifts in government spending priorities, contract delays or reductions in defense budgets. Since many government contracts can be modified or terminated at the customer’s discretion, the company faces limited revenue visibility and potential cash flow pressure.
The company also operates in a rapidly evolving and intensely competitive defense technology market. Any inability to develop innovative solutions or successfully commercialize products could weaken its competitive position against larger and better-capitalized peers.
Continued investments in research and development may weigh on margins, while returns on such spending remain uncertain.
Earnings Estimates for AVAV Stock
The Zacks Consensus Estimate for AVAV’s fiscal 2026 earnings per share (EPS) indicates a decrease of 6.67% over the past 60 days.Zacks Investment Research
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The Zacks Consensus Estimate for Teledyne Technologies’ 2026 EPS calls for a rise of 0.46% in the past 60 days. The estimate for TransDigm Group’s fiscal 2026 EPS implies an increase of 0.13% over the same period.
Debt Position of AVAV
Currently, AeroVironment’s total debt to capital is 14.56%, much better than the industry’s average of 43.21%. It indicates that the company can run its business efficiently with much lower debt levels than its industry peers.Zacks Investment Research
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AVAV’s Liquidity Position
AVAV has a current ratio of 5.51 compared with its industry’s average of 2.17. The ratio, being more than one, indicates that AVAV possesses sufficient capital to pay off its short-term debt obligations.Zacks Investment Research
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Its industry peers, Teledyne Technologies and TransDigm Group, also maintain current ratios above one. TDY has a current ratio of 1.76, while TDG holds 3.52.
AVAV Stock Trades at a Discount
AeroVironment is currently trading at 3.83X, a discount compared to its industry’s 11.98X on a forward 12-month Price/Sales basis.Zacks Investment Research
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What Should Investors Do Now?
AeroVironment continues to benefit from rising global defense demand, supported by strong momentum in unmanned systems, loitering munitions and autonomous technologies. Its expanding backlog and strategic acquisitions are expected to strengthen manufacturing capabilities and support long-term revenue visibility.
Given AVAV’s recent share-price weakness and exposure to government spending risks, new investors may prefer waiting for a better entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider staying invested, supported by its discounted valuation, lower debt levels and healthy liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Kratos Defense Q1 Earnings and Revenues Surpass Estimates
May 7, 2026
Kratos Defense & Security Solutions, Inc. KTOS reported first-quarter 2026 adjusted earnings of 16 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 26.3%. The bottom line also increased 33.3% from the year-ago quarter’s 12 cents.
Kratos Defense reported GAAP earnings of 7 cents per share compared with 3 cents in the year-ago quarter.
KTOS’ Total Revenues
Total revenues were $371 million, which outpaced the Zacks Consensus Estimate of $344 million by 7.7%. The figure also rose 22.6% from $302.6 million recorded in the year-ago quarter.
Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise
Kratos Defense & Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. Quote
Operational Update of Kratos Defense
Kratos Defense’s selling, general and administrative expenses increased 19.9% year over year. Research and development expenses rose 7% compared with the prior-year quarter. Depreciation expenses climbed 46.2% year over year.
Expenses related to the amortization of intangible assets rose 176.2% from the year-ago figure.
The company reported operating income of $4.7 million, which decreased from the year-ago quarter’s $6.6 million.
It posted a consolidated book-to-bill ratio of 1.6 to 1, with bookings worth $605.2 million.
The total backlog at the end of the first quarter of 2026 was $1.635 billion compared with $1.212 billion at the end of the fourth quarter of 2025.
KTOS’ Segmental Performance
Unmanned Systems: Revenues from this segment totaled $82.6 million compared with $63.1 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.
Kratos Government Solutions: Revenues from this segment amounted to $288.4 million compared with $239.5 million in the year-ago quarter. This increase was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products businesses, with organic revenue growth rates of 45.8%, 20.3% and 12.3%, respectively, year over year.
Financial Details of KTOS
As of March 29, 2026, cash and cash equivalents totaled $1.46 billion, up from $0.56 billion as of Dec. 28, 2025.
The company reported other current liabilities of $24.4 million as of March 29, 2026 compared with $9 million recorded as of Dec. 28, 2025.
The net cash used in operating activities amounted to $27.4 million during the first three months of 2026 compared with $29.2 million in the same period of 2025.
Kratos Defense’s Guidance
KTOS projects second-quarter 2026 revenues to be in the range of $400-$410 million. The Zacks Consensus Estimate for revenues is pegged at $401.3 million, which is at the lower end of the company’s guided range.
KTOS now expects 2026 revenues to be in the $1.7-$1.76 million range compared with the previous range of $1,595-$1,675 billion. The Zacks Consensus Estimate for revenues is pegged at $1.68 billion, lower than the company’s guided range.
Kratos Defense now expects operating cash flows to be in the range of $60-$70 million and free cash flow use to be in the band of $85-$105 million for 2026.
Story Continues
KTOS’ Zacks Rank
Kratos Defense currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
TransDigm Group Incorporated TDG reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Teledyne Technologies Inc. TDY reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Hexcel Corporation HXL reported first-quarter 2026 adjusted earnings of 59 cents per share, which improved 59.5% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 42 cents by 40.5%.
The company’s net sales totaled $501.5 million, which beat the Zacks Consensus Estimate of $487 million by 3%. The top line also witnessed an improvement of 9.9% from the year-ago quarter’s figure of $456.5 million.
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- Rocket Lab to Release Q1 Earnings: How to Approach the Stock Now?
May 6, 2026
Rocket Lab Corporation RKLB is expected to report first-quarter 2026 results on May 7, after market close.
The Zacks Consensus Estimate for earnings is pegged at a loss of 4 cents per share, indicating a year-over-year rise of 66.7%. The Zacks Consensus Estimate for revenues is pinned at $191.4 million, calling for a jump of 56.2% from the year-ago reported figure.Zacks Investment Research
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RKLB’s Earnings Surprise History
RKLB’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in three, the average surprise being 4.29%.Zacks Investment Research
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What Our Quantitative Model Predicts for RKLB
Our proven model does not conclusively predict an earnings beat for Rocket Lab this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, RKLB carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank stocks here.
Recent Defense Releases
Teledyne Technologies Inc. TDY reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
Total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line also jumped 7.6% from $1.45 billion reported in the year-ago quarter.
TransDigm Group Incorporated TDG reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Factors That Might Have Impacted RKLB’s Q1 Performance
Higher revenues driven by growth in the number of launch missions, together with solid revenue contributions stemming from strong bookings recorded in prior quarters, are likely to have supported the Launch Services business segment’s top line.
Solid growth in spacecraft and satellite manufacturing is likely to have contributed to revenues for the Space Systems business segment.
Rocket Lab’s first-quarter performance may have benefited from the acquisitions of Optical Support, Inc. (“OSI”) and Precision Components Limited (“PCL”), which expanded its optical payload and precision manufacturing capabilities. The deals are likely to have strengthened Rocket Lab’s position in defense, missile tracking and space systems programs. OSI may have supported higher defense-related contract opportunities, while PCL is expected to have aided Electron and Neutron production. The acquisitions are also likely to have enhanced RKLB’s vertically integrated operations and strengthened revenue generation prospects.
However, higher operating expenses related to continued investments in the Neutron program, and increased research and development spending are likely to have pressured operating margins, limiting overall earnings growth.
Story Continues
RKLB Stock Price Performance
Over the past three months, the stock has risen 3.9% against the industry’s decline of 6.9%.Zacks Investment Research
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RKLB Stock Trading at a Premium
Rocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 46.09X compared with the industry average of 11.64X.Zacks Investment Research
Image Source: Zacks Investment Research
RKLB Stock’s Poor ROIC
The image below shows that RKLB stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.Zacks Investment Research
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Investment Viewpoint
Rocket Lab is gaining momentum in 2026, driven by increased hypersonic test missions and major defense contract wins. After completing three HASTE missions in 2025, it plans more in 2026 while expanding its role in U.S. defense programs through contracts like the SDA Tranche III Tracking Layer and the Missile Defense Agency’s SHIELD IDIQ.
RKLB has reiterated that SDA revenue pacing is frequently constrained by subcontractor deliveries, with optical terminal availability cited as an industry bottleneck. The company expects roughly 37% of the fourth-quarter 2025 backlog to convert within 12 months, including conservative Tranche III estimates, but supplier-driven timing can still shift revenue milestones across quarters. These constraints risk pushing recognition to later periods, increasing volatility and potentially moderating the cadence of cash inflows from large program ramp-ups.
Endnote on RKLB
Rocket Lab is benefiting from growing demand for launch services, spacecraft manufacturing and defense-related space programs, supported by strategic acquisitions and expanding deep-space capabilities. The company remains exposed to risks tied to U.S. government budget cycles, procurement delays and regulatory approvals, which may affect program execution and revenue timing. Elevated operating expenses related to Neutron development, and ongoing research and development investments continue to pressure margins and contribute to recurring losses.
Given its premium valuation, poor ROIC and continued earnings pressure, investors should avoid this stock at the moment.
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- TransDigm Group Incorporated (TDG) Reports Financial Results For Q2 2026
May 6, 2026
TransDigm Group Incorporated (NYSE:TDG) is among the 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds. On May 5, the company reported financial results for the second quarter of fiscal 2026.TransDigm Group Incorporated (TDG) Reports Financial Results For Q2 2026
Net sales grew 18% from the prior year to $2,544 million. Net income totalled $536 million, up 12% year-over-year, with the company attributing the gain to higher sales, effective use of its value-driven operational strategy, and deferred compensation expenses. Adjusted EPS came in at $9.85, up 8% from the same period in fiscal 2025.
Given the strong quarterly performance and recent acquisitions of Jet Parts Engineering and Victor Sierra, TransDigm Group Incorporated (NYSE:TDG) said it was raising the full-year guidance at the midpoint for sales by $420 million, adjusted EPS by $1.14, and EBITDA by $210 million.
Wall Street has a Moderate Buy rating on TDG with an average share price upside potential of 20%, as of the close of business on May 5. On the other hand, 79 hedge funds hold a stake in the company, as of Q4 2025, according to Insider Monkey’s database. This is up from 68 in the prior quarter, reflecting growing institutional interest.
TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.
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- This TransDigm Group Insider Reduced Their Stake By 58%
May 6, 2026
Looking at TransDigm Group Incorporated's (NYSE:TDG ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.
The Last 12 Months Of Insider Transactions At TransDigm Group
In the last twelve months, the biggest single sale by an insider was when the insider, Kevin Stein, sold US$16m worth of shares at a price of US$1,440 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1,191). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Kevin Stein.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for TransDigm Group NYSE:TDG Insider Trading Volume May 6th 2026
I will like TransDigm Group better if I see some big insider buys. While we wait, check out this freelist of undervalued and small cap stocks with considerable, recent, insider buying.
Does TransDigm Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. TransDigm Group insiders own about US$255m worth of shares (which is 0.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About TransDigm Group Insiders?
The fact that there have been no TransDigm Group insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of TransDigm Group, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TransDigm Group. Our analysis shows 3 warning signs for TransDigm Group (2 make us uncomfortable!) and we strongly recommend you look at them before investing.
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Of course TransDigm Group may not be the best stock to buy. So you may wish to see this freecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- Rocket Lab to Release Q1 Earnings: How to Approach the Stock Now?
May 6, 2026 · zacks.com
RKLB heads into Q1 results with launch and space systems momentum, but Neutron and R&D spending, premium valuation and recurring losses may have weighed on the stock.
- TransDigm Group Incorporated (TDG) Q2 2026 Earnings Call Transcript
May 5, 2026 · seekingalpha.com
TransDigm Group Incorporated (TDG) Q2 2026 Earnings Call Transcript
- TransDigm's Q2 Earnings Surpass Estimates, Sales Increase Y/Y
May 5, 2026
TransDigm Group Incorporated TDG reported second-quarter fiscal 2026 adjusted earnings of $9.85 per share, which topped the Zacks Consensus Estimate of $9.32 by 5.7%. The bottom line also improved 8% from the prior-year quarter’s figure of $9.11.
The company reported GAAP earnings of $9.20 per share compared with $8.24 in the year-ago quarter.
TransDigm’s Q2 Sales Discussion
Sales amounted to $2.54 billion, up 18% from $2.15 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.42 billion by 4.9%.
Organic sales, as a percentage of net sales, grew 11%.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
TDG’s Operating Results
The gross profit was $1.51 billion, up 18.6% from the year-ago quarter’s level of $1.27 billion.
TDG’s interest expenses increased 28% year over year to $484 million.
Net income increased 11.9% year over year to $536 million.
During the fiscal second quarter of 2026, TDG repurchased 602,070 shares of its common stock at an average price per share of $1,201 for a total amount of $723 million. For the 26 week period ended March 28, 2026, the company repurchased 687,282 shares of its common stock at an average price per share of $1,207 for a total amount of $829 million.
TransDigm’s Financial Position
Cash and cash equivalents as of March 28, 2026, amounted to $3.89 billion, up from $2.81 billion recorded as of Sept. 30, 2025.
Long-term debt as of March 28, 2026, totaled $31.15 billion, up from $29.2 billion as of Sept. 30, 2025.
Cash from operating activities amounted to $967 billion compared with $900 billion in the year-ago period.
TDG’s 2026 Guidance
The company now expects its net sales to be in the range of $10.300-$10.420 billion compared with the previous guidance of $9.845-$10.035 billion. The Zacks Consensus Estimate is pegged at $10.04 billion, which is lower than the company’s newly guided range.
TDG expects fiscal 2026 adjusted earnings to be in the band of $38.83-$40.21 per share compared with its previous guidance of $37.42-$39.34 per share. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $39.15 per share, higher than the midpoint of the company’s revised guided range.
TDG’s Zacks Rank
TransDigm currently has a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Release
Teledyne Technologies Inc. TDY reported first-quarter 2026 adjusted earnings of $5.80 per share, which surpassed the Zacks Consensus Estimate of $5.48 by 5.9%. The bottom line also improved 17.2% from $4.95 recorded in the year-ago quarter.
TDY’s total sales were $1.56 billion, which beat the Zacks Consensus Estimate of $1.51 billion by 3.3%. The top line jumped 7.6% from $1.45 billion reported in the year-ago quarter.
Lockheed Martin Corporation LMT reported first-quarter 2026 adjusted earnings of $6.44 per share, which missed the Zacks Consensus Estimate of $6.67 by 3.5%. The bottom line increased 11.5% from the year-ago quarter's reported figure of $2.22.
LMT’s net sales were $18.02 billion, which missed the Zacks Consensus Estimate of $18.12 billion by 0.6%. The top line inched up 0.3% from $17.96 billion reported in the year-ago quarter.
Textron Inc. TXT reported first-quarter 2026 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 11.3%. The bottom line also rose 13.3% from $1.28 in the year-ago quarter.
TXT reported total revenues of $3.7 billion, which beat the Zacks Consensus Estimate of $3.51 billion by 5.4%. The top line also increased 11.8% from the year-ago quarter’s level of $3.31 billion.
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This article originally published on Zacks Investment Research (zacks.com).
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