Is a Breakout in the Charts for Triumph Group (TGI)?

Triumph Group Inc. (TGI) designs and manufactures a broad portfolio of aerostructures, aircraft components, and systems for the aviation industry. It serves a worldwide customer base of players in the commercial, business, and military markets…

Although Triumph Group Inc. (TGI) took a hit during the pandemic, the long-term outlook for the commercial aerospace industry is bullish due to the air travel demand. In fact, the company is seeing sales growth from Airbus commercial programs. Plus, TGI has a strong presence in the U.S. defense market.

The company had $237 million in cash as of the most recent quarter compared with only $5 million in short-term debt. However, TGI has a negative profit margin. Sales have been down an average of 18.3% over the past three years and down 33.5% over the last year.

But analysts expect earnings to rise 2,133.3% for the year, which has led to a Growth Grade of B in our POWR Ratings service. The stock appears overvalued at its current price with a forward P/E of 37.59. TGI’s stock is down for the month, but up 55.7% for the year. It has been in a long-term uptrend since November as seen in the chart below.

Take a look at the 1-year chart of TGI below with the added notations…

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