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We recently published a list of Top 10 Stocks to Watch as Investors Brace for Potential Recession. In this article, we are going to take a look at where TransDigm Group Incorporated (NYSE:TDG) stands against other top stocks to watch as investors brace for potential recession.
President Donald Trump’s new reciprocal tariff announcement is hammering stock markets around the world as countries face a new reality and trade dynamics. The rising volatility has increased recession risks. Goldman Sachs recently said that it sees a 35% chance of a recession in the next 12 months, up from 20% previously. The bank also cut its 2025 GDP forecast to just 1% and raised its year-end unemployment rate outlook by 0.3 percentage points to 4.5%.
China and key European countries are beginning to respond to the latest tariffs and will likely impose retaliatory tariffs on US products, causing a further downturn in consumer sentiment. Kara Reynolds, an economist at American University, told ABC News that a pullback in spending from consumers and businesses due to these uncertainties can tip the US into a recession.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks currently on Wall Street’s radar. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An aerial view of an aircraft factory, showing a flurry of activity on the factory floor.
TransDigm Group Incorporated (NYSE:TDG)
Number of Hedge Fund Investors: 71
Jed Ellerbroek from Argent Capital said in a latest program that he’s bullish on TransDigm Group Incorporated (NYSE:TDG). Here is how he explained his bullish thesis for the aerospace company:
“One of our favorites is the Aerospace aftermarket, and so we own a company called TransDigm. There are smaller-cap companies that we own in our midcap and small-cap strategies. Those businesses cater to airplane aftermarket demand, so they’re selling replacement aircraft products to airlines and SS. That business is growing rapidly today—it’s always growing, but it’s growing especially well these days because Boeing has had trouble delivering new airplanes to clients.”
