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TransDigm Group Incorporated (NYSE:TDG) is one of the best defense stocks that will skyrocket. On April 14, TransDigm Group Incorporated (NYSE:TDG) reiterated it expects net sales of between $2.54 billion and $2.545 billion for the thirteen-week period ended March 28, 2026. The company also expects EBITDA of between $1.33 billion and $1.335 billion.

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The preliminary financial results also coincide with plans for an incremental $1.25 billion debt offering. The company’s wholly owned subsidiary plans to issue $1.25 billion in new debt, consisting of $250 million in new 6.125% senior notes due 2034 and $1 billion in new term loans. The company plans to use net proceeds from the debt offering to fund the purchase of Stellant Systems. Part of the proceeds will also go towards covering $800 million in common share repurchases completed in March.

On the other hand, the company has completed the acquisition of Jet Parts Engineering and Victor Sierra Aviation Holdings for $2.2 billion. The companies TransDigm Group has generated $280 million in revenue in 2025.

TransDigm Group Incorporated (NYSE:TDG) designs and supplies proprietary aerospace components used on nearly all 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.

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