Stock Analysis | Teledyne Outlook - Technical Neutrality and Mixed Analyst Signals

Market Snapshot

Teledyne (TDY) is in technical neutrality with mixed signals suggesting caution for now. The stock is showing a slight price rise (0.29%) but lacks a strong directional bias according to technical indicators.

News Highlights

Recent headlines include:

• Texas Instruments' $30B Sherman expansion aims to support a 53-acre mixed-use development for workers. The company is nearing completion of its first semiconductor fabrication plant in the area, signaling strong industrial demand.
• European Central Bank President Christine Lagarde emphasized the bank's preparedness to use all tools to maintain financial and price stability amid global tariff developments, which could indirectly influence market sentiment.
• EDS Detectors Market is expected to grow at a CAGR of 8.2% through 2031, with major players like Thermo Fisher Scientific and Bruker leading the charge. This could benefit Teledyne through sector tailwinds.

Analyst Views & Fundamentals

Analysts have issued mixed signals, with two major ratings in the past 20 days—Strong Buy from UBS and Neutral from Morgan Stanley. The simple average rating is 4.00, while the performance-weighted rating is 2.41, indicating weaker historical performance behind the higher expectations. Analysts are not in strong agreement (ratings dispersed), which contrasts with the stock's upward price trend.

Fundamental Highlights

• EV/EBIT: 67.50x (internal diagnostic score: 2.00). This suggests higher valuation relative to earnings, which could concern value investors.
• ROE: 2.03% (score: 2.00). A low return on equity implies weaker profitability relative to shareholder equity.
• Annualized Return on Total Assets: 7.29% (score: 2.00). This shows moderate asset efficiency.
• EBIT/Total Operating Revenue: 18.03% (score: 2.00). A healthy operating margin, though the score reflects broader negative valuation signals.
• Interest Coverage Ratio: 15.31% (score: 2.00). Indicates strong ability to cover interest expenses.

Money-Flow Trends

Big money is flowing out, with all categories (extra-large to small) showing negative trends. The overall fund-flow ratio is 0.45, and the score is 7.52 (internal diagnostic score: 7.52), suggesting a relatively good performance in the context of a negative overall trend. While institutional money is leaving, the strength of the score implies the outflows might not yet signal panic.

Key Technical Signals

Teledyne's technical indicators are mixed:

• WR Oversold (score: 8.75): Suggesting strong bullish potential, with 80% historical win rate.
• WR Overbought (score: 3.48): Mixed signal, with a 52.5% win rate.
• Bullish Engulfing (score: 7.74): Strong bullish signal, historically associated with 75% win rate.
• Bearish Engulfing (score: 1.00): A red flag, with only 28.57% win rate.
• Marubozu White (score: 4.08): A neutral-to-bullish signal with 53.33% historical success.

Recent chart patterns include a Bullish Engulfing on 2025-08-19 and a Marubozu White on 2025-08-26, showing potential for upward movement but no clear confirmation yet.

Key insight: Technical indicators are split, with long and short signals relatively balanced, suggesting a wait-and-see stance. Momentum remains unclear, and volatility is high.

Conclusion

With mixed technical signals and divergent analyst ratings, Teledyne (TDY) remains in a holding pattern. While bullish patterns like WR Oversold and Bullish Engulfing show internal diagnostic strength, bearish signals and weak fundamentals temper optimism. Investors may want to consider waiting for a clearer breakout or improved earnings visibility before committing capital. For now, a watchful eye on market changes and upcoming sector-related news is warranted.