Teledyne Technologies Outperforms Market with 6.52% Annualized Return Over Past 10 Years, Worth $528.77 if Invested $100 in 2013

Teledyne Technologies (TDY) has outperformed the market over the past 10 years with an annualized return of 18.23%, compared to the market's 11.71%. If $100 was invested in TDY 10 years ago, it would be worth $528.77 today, based on the current stock price of $550.13. Compounded returns can significantly impact cash growth over time, making it crucial to consider long-term investment strategies.

Teledyne Technologies (TDY) has demonstrated remarkable performance over the past decade, with an annualized return of 18.23% compared to the market's 11.71% [1]. This strong track record is evident in the growth of a $100 investment in TDY ten years ago, which would now be worth $528.77, based on the current stock price of $550.13 [1].

Teledyne's Q2 2025 earnings report highlights the company's operational strength, with revenue surging 10.2% year-over-year to $1.51 billion and non-GAAP EPS of $5.20, beating analyst expectations by 3% [2]. The company's EBITDA margins hit 27.9%, a significant 19% beat over expectations. This robust performance is driven by growth in various segments, including marine instruments, environmental instruments, and defense electronics.

However, the stock fell 4.2% post-earnings, raising questions about potential buying opportunities. The company's P/E ratio of 31.58 is 19% above its 10-year average, but its valuation metrics remain in line with industry norms. Teledyne's strong balance sheet, with $1.2 billion in undrawn credit and a $2 billion stock buyback authorization, positions it well to reward shareholders while maintaining flexibility.

Management's caution about short-cycle demand volatility due to potential U.S. trade policy changes in Q3 is a significant factor to consider. If customers are front-loading orders to avoid potential tariffs, Q3 could see a flatline or even a dip in sales. The company's guidance for flat Q3 sales reflects this prudence, but long-cycle businesses like FLIR defense systems remain robust.

For long-term investors, the current dip could present a compelling buying opportunity. However, the stock's elevated valuation and near-term demand risks must be carefully considered. The key is to time the entry, potentially capitalizing on further dips due to short-term volatility, while remaining confident in the company's long-term resilience in defense and industrial tech.

References:
[1] https://www.benzinga.com/insights/news/25/08/46985780/heres-how-much-100-invested-in-teledyne-technologies-10-years-ago-would-be-worth-today
[2] https://www.ainvest.com/news/teledyne-q2-2025-earnings-buying-opportunity-growth-cautions-2508/