Is Teledyne Technologies Stock Outperforming the Nasdaq?

Valued at a market cap of $23.5 billion, Teledyne Technologies Incorporated (TDY) provides enabling technologies for industrial growth markets including aerospace and defense, factory automation, air and water quality environmental monitoring, electronics design and development, oceanographic research, deepwater oil and gas exploration and production, and medical imaging and pharmaceutical research. The company is headquartered in Thousand Oaks, California.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Teledyne fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the scientific & technical instruments industry. The company's strengths lie in its diversified portfolio, strong R&D capabilities, and long-standing relationships with government agencies like NASA and the U.S. Department of Defense. It benefits from high barriers to entry due to its expertise in niche, high-tech products such as advanced imaging systems, avionics, and autonomous underwater vehicles.

This tech company is currently trading 2.8% below its 52-week high of $522.50, reached on Jan. 31. Shares of TDY have surged 6.9% over the past three months, considerably outpacing the broader Nasdaq Composite’s ($NASX) 9.2% decline during the same time frame.

In the longer term, Teledyne has rallied 19.7% over the past 52 weeks, outperforming NASX’s 10.7% uptick. Moreover, on a YTD basis, shares of TDY are up 9.4%, compared to NASX’s 5.8% loss.

To confirm its bullish trend, TDY has been trading above its 200-day moving average since late July, 2024, and has remained above its 50-day moving average since mid-July, 2024, with some fluctuations. 

On Jan. 22, shares of TDY soared 6.5% following its Q4 earnings release as the company delivered better-than-expected adjusted earnings of $5.52 per share and revenue of $1.5 billion. Notably, the company achieved record sales and non-GAAP EPS in the quarter. Its top line improved 5.4% from the year-ago quarter, primarily due to growth across all its reportable segments. This growth was fueled by improved shorter-cycle businesses throughout 2024, coupled with robust demand in its longer-cycle defense, space, and energy divisions. Furthermore, the adjusted earnings also saw a 1.5% year-over-year improvement.

For fiscal 2025, Teledyne expects non-GAAP EPS in the range of $21.10 to $21.50, representing a robust 6.9% to 9% increase compared to the year-ago quarter, further bolstering investor confidence. 

Teledyne’s outperformance becomes more evident when compared to its rival, Keysight Technologies, Inc.’s (KEYS) 2.8% gain over the past 52 weeks and 1.2% decline on a YTD basis. 

Looking at TDY’s recent outperformance relative to the Nasdaq, analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the nine analysts covering it, and the mean price target of $572.78 suggests a 12.8% premium to its current levels.