TransDigm Group Incorporated (NYSE:TDG) is among the 10 Best Defense Stocks to Buy in the S&P 500. On January 16, the company announced it had reached an agreement with Vance Street Capital to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings for approximately $2.2 billion.
The takeover will include certain tax benefits. It is set to further expand the company’s position in the aerospace aftermarket, following December’s $960 million acquisition of Stellant Systems, Inc. from Arlington Capital Partners.
Aftermarket businesses have become one of the most lucrative areas of the sector, given the rising demand for aircraft parts and maintenance as airlines look to extend the life of their fleets.
Both Jet Parts Engineering and Victor Sierra Aviation had a combined revenue of $280 million in 2025, according to a press release by TransDigm Group Incorporated (NYSE:TDG).
In other news, UBS on January 15 lifted its price target on the stock to $1,804 from $1,798, while reiterating the firm’s Buy rating. Based on the ratings of 13 analysts, TDG is a consensus Strong Buy, with a one-year average share price of $1,604.25, representing an upside of 10.64% as of Monday’s close.
TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.
While we acknowledge the potential of TDG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 14 Best Booming Stocks to Buy Right Now and 7 Best Defense Dividend Stocks to Buy.
Disclosure: None.