TransDigm Reported Earnings Last Week. Here's How This Quiet Aerospace Stock Turned $10,000 Into a Fortune.

"Hidden gem" describes a high-performing banal that isn't generating overmuch fanfare. In the hidden gem family, immoderate names are undiscovered Hope Diamonds. That's the 45.5-carat gem with an estimated worth of up to $350 million.

Admittedly, describing that level of jewelry prestige for immoderate banal takes immoderate liberties, but it is befitting of immoderate names successful the unheralded camp. TransDigm (NYSE: TDG) is simply a premier example.

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First, let's code the caller goings-on astatine this aerospace and defence parts supplier. The institution reported fiscal third-quarter results past week, telling investors income jumped 23% to $2.74 cardinal portion adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) roseate 19% to $1.5 billion.

The concern banal pulled backmost pursuing the report, extending its 2026 nonaccomplishment to astir 8%. As of Aug. 7, TransDigm trades 16.3% beneath its 52-week high, but the stock's past indicates its caller weakness whitethorn besides beryllium a buying opportunity. Speaking of history...

TransDigm's past matters

Acknowledging that fiscal markets are forward-looking enterprises, a speedy TransDigm past acquisition is worthy the clip due to the fact that it reveals however this nondescript aerospace banal is the explanation of a compounder and a millionaire maker.

The institution was formed successful 1993 with starting equity of $25 million. After that, nary further equity was raised, but present we are discussing a banal with a marketplace capitalization of $69 billion. TransDigm went nationalist successful 2006 astatine $21 share, and it closed astatine $1,225.25 past Friday. So adjacent if we're generous and disregard the stock's lethargy successful 2026, it delivered an annualized instrumentality of 23.1% done the extremity of 2025.

Investors who missed TransDigm's archetypal decennary arsenic a nationalist institution weren't cheated if they got progressive with the banal 10 years ago. Since then, the shares person risen astir sixfold, beating the Nasdaq-100 index successful the process portion thumping the largest concern exchange-traded money (ETF).

It's harmless to accidental TransDigm is simply a serial compounder, and portion of the crushed it attained that presumption is due to the fact that it's a serial acquirer. Over the years, it has acquired dozens of purveyors of "mission-critical" aerospace and defence components. It's astir guaranteed that the adjacent clip you question by air, the level you're connected volition person astatine slightest a fewer parts manufactured by a TransDigm company. Put differently, TransDigm puts the "wide" successful "wide moat."