5 New Stock Picks of Billionaire George Soros

In this article, we discuss 5 new stock picks of billionaire George Soros. If you want our detailed analysis of these stocks, go directly to 10 New Stock Picks of Billionaire George Soros. 

5. TransDigm Group Incorporated (NYSE:TDG)

Soros Fund Management’s Stake Value: $14,953,000

Percentage of Soros Fund Management’s 13F Portfolio: 0.20%

Number of Hedge Fund Holders: 63

Soros Fund Management purchased 23,500 shares of TransDigm Group Incorporated (NYSE:TDG) in Q4 2021, worth approximately $15 million, representing 0.20% of the firm’s total 13F securities. TransDigm Group Incorporated (NYSE:TDG) is an Ohio-based company that manufactures engineered aerospace components.

Publishing its Q4 results on February 8, TransDigm Group Incorporated (NYSE:TDG) announced earnings per share of $3.00, missing estimates by $0.17. The $1.19 billion revenue missed estimates by roughly $42 million. 

On February 9, Morgan Stanley analyst Kristine Liwag raised the price target on TransDigm Group Incorporated (NYSE:TDG) to $801 from $762 and kept an Overweight rating on the shares. Though the company reported a top and bottom line miss in fiscal Q1 driven by its Defense segment, EBITDA margins remained strong, commercial aftermarket activity continued to strengthen, and sequential bookings growth outpaced sales growth in the quarter, the analyst told investors in a bullish note. 

A total of 63 hedge funds were bullish on TransDigm Group Incorporated (NYSE:TDG) in Q3 2021, up from 57 funds in the quarter prior. Stockbridge Partners held a significant stake in TransDigm Group Incorporated (NYSE:TDG) as of September 2021, with 1.5 million shares worth approximately $971 million. 

Here is what Vulcan Value Partners has to say about TransDigm Group Incorporated (NYSE:TDG) in its Q2 2021 investor letter:

“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”