Is It Time To Consider Buying Teledyne Technologies Incorporated (NYSE:TDY)?

Teledyne Technologies Incorporated (NYSE:TDY) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$489 at one point, and dropping to the lows of US$437. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Teledyne Technologies' current trading price of US$456 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Teledyne Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Teledyne Technologies

Is Teledyne Technologies Still Cheap?

According to our valuation model, Teledyne Technologies seems to be fairly priced at around 18% below our intrinsic value, which means if you buy Teledyne Technologies today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $552.94, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Teledyne Technologies’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Teledyne Technologies generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a negative profit growth of -2.7% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Teledyne Technologies. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? TDY seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on TDY for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on TDY should the price fluctuate below its true value.

If you'd like to know more about Teledyne Technologies as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Teledyne Technologies has 1 warning sign and it would be unwise to ignore it.

If you are no longer interested in Teledyne Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.