An ascending triangle pattern has formed in the chart of Triumph Group Inc . (NYSE:TGI). The stock hit a resistance line multiple times and if it breaks through, a breakout is expected to occur. Read more to learn how to profit from this trade.Triumph Group Inc. (TGI) designs and manufactures a broad portfolio of aerostructures, aircraft components, and systems for the aviation industry. It serves a worldwide customer base of players in the commercial, business, and military markets.
Although the company took a hit during the pandemic, the long-term outlook for the commercial aerospace industry is bullish due to the air travel demand. In fact, the company is seeing sales growth from Airbus commercial programs. Plus, TGI has a strong presence in the U.S. defense market.
The company had $237 million in cash as of the most recent quarter compared with only $5 million in short-term debt. However, TGI has a negative profit margin. Sales have been down an average of 18.3% over the past three years and down 33.5% over the last year.