Triumph Group (NYSE: TGI) designs, engineers, manufactures, repairs, overhauls and distributes aircraft components, such as hydraulic, mechanical and electromechanical control systems, aircraft and engine accessories, structural assemblies, auxiliary power units and aircraft instruments. Customers include original equipment makers and aftermarket manufacturers in the commercial, military, and air cargo markets.

The firm surprised the Street earlier in the month, when it reported Q4 EPS of $1.26 and revenues of $321.2 million. Analysts had been looking for $1.04 and $302.1 million. Management also guided FY08 EPS to $4.85-$5.05 ($4.12 consensus) and FY08 revenues to $1.25-$1.35 billion ($1.13 billion consensus). The CEO noted that quarterly sales had set a new company record and that backlog had reached a record $1.3 billion.

The news popped the stock out of an April "cup" into the May "handle" of a Cup & Handle formation. The price is now showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle."

Brokers recommend the issue with six "strong buys" and three "buys." Analysts see a 20% average annual growth rate, through the next five years. The TGI P/E ratio (15.95), PEG ratio (0.81), Price to Sales ratio (0.98), Price to Book ratio (1.63), Sales Growth rate (23.63%) and EPS Growth rate (46.51%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $48.25 and $86.38. A stop-loss of $59.80 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.