5 Best Industrial Stocks to Buy Now

2. TransDigm Group, Inc. (NYSE:TDG)

No of HFs: 64

Total Value of HF Holdings: $6.12 Billion

The top hedge fund holder of this stock is Chase Coleman And Feroz Dewan’s Tiger Global Management LLC which had $834 million invested in the stock at the end of September. An insider purchased 1 share at around $600 in December 2020. The stock is down 7% since then. Vulcan Value Partners mentioned TDG in their Q2 2020 investor letter:

“TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Most of its products are small volume, low cost items that are sole sourced from TransDigm. It is economically unlikely for a new company to compete on any particular product because volumes on individual components are not large enough to justify the investment in manufacturing facilities and regulatory approval. The company produces high levels of free cash flow, has long equity duration, a strong business model, and an effective, shareholder-oriented management team who are good capital allocators.”