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The Zacks Analyst Blog Highlights: Teledyne, Safran, Engility and CAE

For Immediate Release

Chicago, IL –November 27, 2018 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Teledyne Technologies Inc. TDY, Safran SA SAFRY, Engility Holdings, Inc. EGL and CAE Inc. CAE.

Here are highlights from Tuesday’s Analyst Blog:

4 Defense Stocks Up More than 8% Year to Date

U.S. defense stocks have been witnessing a solid rally over the past couple of years. Rising geopolitical tensions across the globe along with President Trump’s supportive policy reforms remain the major drivers for this space. 

Interestingly, while the recent geopolitical tussle between the United States and some of its long-standing opponents has been a growth inhibitor for a few American industries, in case of defense stocks, it has acted as a catalyst.

Solid Q3 Earnings Picture

As of Nov 21, 90.9% of the companies in the Zacks Aerospace sector, which includes defense stocks, reported Q3 results. Notably, 70% of these stocks came up with earnings and revenue beat. Sector behemoths like Lockheed Martin and Boeing beat earnings estimates. No doubt, encouraging quarterly results have set the stage for the addition of defense stocks to one’s portfolio.

Lucrative Foreign Market

With technological upgrades, America’s combat-proven weaponries are becoming all the more lethal, thereby boosting their value in the international weapons market. According to the latest report from Aerospace Industries Association (AIA), United States led global exports in the aerospace and defense industry in 2017 accounted for 34% of the industry’s total exports. We expect this winning streak to continue.

4 Hot Choices

We have selected four defense stocks that have gained more than 8% on a year-to-date basis and the rally is expected to continue, thanks to the aforementioned factors. It is imperative to mention in this context that each of these stocks outperformed the S&P 500 Index. The index has lost 1.5% year to date. In such circumstances, adding defense stocks to one’s portfolio seems prudent. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Teledyne Technologies Inc. is an industrial conglomerate. The current-year earnings growth rate expectation for this Zacks Rank #1 stock is 37%. The company surpassed the Zacks Consensus Estimate in the past four quarters with the average surprise being 12.92%. Its shares have gained 19.2% year to date.

Safran SA is an aircraft-engine maker. The long-term earnings growth rate expectation for this Zacks Rank #1 stock is 11%. The company boasts a P/E ratio of 22.82, which is cheaper than the industry’s ratio of 39.6%. Its shares have gained 19.7% year to date.

Engility Holdings, Inc. is a leading provider of integrated solutions and services. The long-term earnings growth rate expectation for this Zacks Rank #2 stock is 5%. The company surpassed the Zacks Consensus Estimate in the last four quarters with the average surprise being 19.98%. Its shares have gained 9% year to date.

CAE Inc. is a worldwide leader in training for the civil aviation, defense and security, and healthcare markets. The fiscal-year earnings growth rate expectation for this Zacks Rank #2 stock is 8%. The company surpassed the Zacks Consensus Estimate in the last four quarters with the average surprise being 4.28%. Its shares have gained 8.5% year to date.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

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