TransDigm Group is a holding company. Through its subsidiary, TransDigm Inc., Co. is a designer, producer and supplier of aircraft components for use on commercial and military aircraft. Co.'s segments are: Power and Control, which develops, produces and markets systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies; Airframe, which develops, produces and markets systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies; and Non-aviation, which develops, produces and markets products for non-aviation markets.
When researching a stock like TransDigm Group, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from TDG Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for TDG stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the TDG 200 day moving average ("TDG 200 DMA"), while one of the most popular "shorter look-backs" is the TDG 50 day moving average ("TDG 50 DMA"). A chart showing both of these popular moving averages is shown on this page for TransDigm Group. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the TDG 200 DMA and the TDG 50 DMA, we get a moving average convergence divergence indicator ("TDG MACD"). The TDG MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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