How Is Teledyne Technologies' Stock Performance Compared to Other Technology Stocks?

Teledyne Technologies Incorporated (TDY), headquartered in Thousand Oaks, California, is a leading provider of sophisticated instrumentation. With a market cap of $24.1 billion, the company provides aerospace and defense electronics, digital imaging products and software, monitoring instrumentation for marine and environmental applications, harsh environment interconnect products, and subsystems for satellite communications. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and TDY fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the scientific & technical instruments industry. TDY's diversified product portfolio through strategic acquisition effectively enhances its technological capabilities and market reach. The company’s innovation and investment in R&D, global presence, and long-term contracts has enabled it to maintain a competitive edge over its peers.

Despite its notable strength, TDY slipped 13.4% from its 52-week high of $595.99, achieved on Oct. 7. Over the past three months, TDY stock declined 5.3%, underperforming the Technology Select Sector SPDR Fund’s (XLK) 10.1% gains during the same time frame.

In the longer term, shares of TDY rose 3.1% on a six-month basis and climbed 9.6% over the past 52 weeks, underperforming XLK’s 23.5% gains on a six-month basis and 26.1% returns over the last year. 

To confirm the bearish trend, TDY has been trading below its 200-day moving average since mid-November, with slight fluctuations. The stock has been trading below its 50-day moving average since late October.

On Oct. 22, TDY shares closed down more than 5% after reporting its Q3 results. Its adjusted EPS of $5.57 topped Wall Street expectations of $5.50. The company’s revenue was $1.54 billion, topping Wall Street forecasts of $1.52 billion. The company expects full-year adjusted EPS in the range of $21.45 to $21.60.

In the competitive arena of scientific & technical instruments, Keysight Technologies, Inc. (KEYS) has taken the lead over TDY, showing resilience with a 30.1% uptick on a six-month basis and 26% gains over the past 52 weeks.

Wall Street analysts are reasonably bullish on TDY’s prospects. The stock has a consensus “Moderate Buy” rating from the 11 analysts covering it, and the mean price target of $620.90 suggests a potential upside of 20.3% from current price levels.