Advertisement
ESE vs TDY
Which Stock Would AI Choose? ESCO Technologies (ESE) vs. Teledyne Technologies (TDY) Stock Comparison
Key Takeaways
- ESE (ESCO Technologies) is delivering faster growth, with a record backlog and sharply higher earnings guidance, but trades at a premium valuation that has fueled volatility.
- TDY (Teledyne Technologies) is a larger, more diversified industrial-technology firm with steadier momentum, a strong defense tailwind, and a more moderate valuation.
- Both companies are leveraging defense and aerospace demand, but ESE adds a distinctive electric-utility testing and grid-monitoring franchise.
- ESE's recent relative performance has been stronger, while TDY offers broader diversification across imaging, instrumentation, and engineered systems.
- Risk profiles differ: ESE carries acquisition-financing risk from its Megger deal, while TDY faces supply-chain and tariff-related margin pressure.
Introduction
Investors screening the industrial-technology space frequently encounter two names with similar catalysts but very different profiles: ESE, the St. Louis-based ESCO Technologies, and TDY, California-based Teledyne Technologies. Both are benefiting from rising defense budgets, a recovering commercial-aerospace cycle, and electrification trends, yet they compete for capital in different ways. This stock comparison examines their recent performance, business drivers, and market positioning to help traders and longer-term investors assess which fits their objectives. Understanding how each converts order momentum into earnings, and how the market is pricing that growth, is central to evaluating their relative appeal in the current environment.
ESE Overview and Recent Performance
ESE, or ESCO Technologies, engineers specialized components and systems across three segments: Aerospace & Defense, Utility Solutions, and RF Test & Measurement. Recent market activity has been marked by accelerating order intake, a record backlog, and upward revisions to full-year earnings guidance. In its most recent quarters, the company reported double-digit organic order growth, with strength concentrated in commercial aerospace, U.S. and U.K. Navy programs, and a rebounding Test business tied to data-center and electromagnetic-compatibility (EMC) demand.
Sentiment has been further shaped by the April 2026 agreement to acquire Megger Group for approximately $2.35 billion, a deal that would substantially expand its utility-testing franchise. The pending transaction, combined with an already elevated price-to-earnings (P/E) multiple, has contributed to outsized price swings even on otherwise strong results. Investors appear to be weighing rapid earnings growth against the financing and integration risks of the Megger acquisition.
TDY Overview and Recent Performance
TDY, Teledyne Technologies, is a diversified provider of digital-imaging products, instrumentation, aerospace and defense electronics, and engineered systems. In recent quarters it has posted record sales and earnings, driven by defense, space, and semiconductor-inspection demand, with the Digital Imaging and Aerospace & Defense segments leading growth. The company has raised its full-year outlook as defense backlogs build and short-cycle industrial markets recover.
Recent momentum reflects both organic execution and an active acquisition strategy, including the 2026 purchase of DD-Scientific and the planned Varex Imaging transaction. Teledyne has also secured incremental defense contracts, including unmanned-systems work, that support multi-year revenue visibility. At the same time, supply-chain lead times, tariff exposure, and margin pressure in certain acquired units have tempered near-term enthusiasm, leaving the shares in a balanced position between strong fundamentals and a valuation debate.
Trending AI Robots
For traders seeking a data-driven edge in comparisons like this one, Tickeron's Trending AI Robots page offers a curated view of algorithmic strategies. Tickeron hosts hundreds of AI trading bots that collectively trade thousands of different tickers, but only the most suitable for current market conditions earn a place in this section. The bots vary widely in trading style, strategy, timeframe, performance, and the sets of tickers they monitor, giving investors access to diversified, rules-based approaches across momentum, trend, and mean-reversion models. Exploring the Trending AI Robots can help you identify automated signals aligned with your own market outlook.
Head-to-Head Comparison
The clearest contrast between these two names is growth pace versus diversification. ESE is growing revenue and earnings considerably faster and has demonstrated stronger relative performance over recent months, but that growth is concentrated in a smaller revenue base and carries a higher valuation. TDY is roughly five times larger by revenue, spanning imaging, instrumentation, and engineered systems, which provides broader cyclical balance and a more moderate multiple.
Sector exposure also differs. Both serve defense and aerospace, but ESE adds a dedicated utility grid-monitoring franchise that benefits from electrification and aging infrastructure. TDY, by contrast, leans on digital imaging and short-cycle industrial markets that are still normalizing. On risk, ESE's pending Megger acquisition introduces financing and integration uncertainty, while TDY's chief headwinds are supply-chain constraints, tariffs, and margin execution in acquired units. From a market-sentiment standpoint, both carry consensus "Buy" ratings, though analysts' implied upside varies with each firm's growth assumptions.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor ESE for its stronger trend consistency, accelerating order momentum, and record backlog, which collectively suggest more powerful near-term earnings catalysts. However, that edge is probabilistic rather than definitive: ESE's elevated valuation and acquisition-financing risk introduce greater downside sensitivity, whereas TDY offers more stable, diversified positioning with steadier momentum. An AI-driven assessment would therefore weigh ESE's superior growth and trend against TDY's broader resilience, with the outcome depending on whether the strategy prioritizes momentum or stability.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ESE is a StrongBuy and TDY is a Buy.
ESE sees its Stochastic Oscillator ascending out of oversold territory
On October 28, 2026, the Stochastic Oscillator for ESE moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 58 instances where the indicator left the oversold zone. In 43 of the 58 cases the stock moved higher in the following days. This puts the odds of a move higher at over 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ESE's RSI Indicator exited the oversold zone, 11 of 18 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 61%.
The Moving Average Convergence Divergence (MACD) for ESE just turned positive on November 02, 2026. Looking at past instances where ESE's MACD turned positive, the stock continued to rise in 33 of 47 cases over the following month. The odds of a continued upward trend are 70%.
Following a +2.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where ESE advanced for three days, in 214 of 347 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
ESE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ESE as a result. In 48 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 55%.
The 50-day moving average for ESE moved below the 200-day moving average on October 07, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ESE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
The Aroon Indicator for ESE entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 34 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 45 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. ESE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 93 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.861) is normal, around the industry mean (1.478). P/E Ratio (19.791) is within average values for comparable stocks, (6.015). Projected Growth (PEG Ratio) (12.750) is also within normal values, averaging (5.470). Dividend Yield (0.001) settles around the average of (0.011) among similar stocks. P/S Ratio (5.208) is also within normal values, averaging (32.028).
The Tickeron PE Growth Rating for this company is 93 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Momentum Indicator for TDY turns positive, indicating new upward trend
TDY saw its Momentum Indicator move above the 0 level on October 12, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In 51 of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at 58%.
Technical Analysis (Indicators)
Bullish Trend Analysis
TDY moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TDY crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 6 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 40%.
Following a +3.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where TDY advanced for three days, in 192 of 346 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
The Aroon Indicator entered an Uptrend today. In 120 of 276 cases where TDY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 43%.
Bearish Trend Analysis
The 10-day RSI Indicator for TDY moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 18 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 44%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for TDY moved below the 200-day moving average on October 14, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TDY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
TDY broke above its upper Bollinger Band on October 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 38 (best 1 - 100 worst), indicating steady price growth. TDY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 40 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 74 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 99 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.802) is normal, around the industry mean (1.478). P/E Ratio (31.514) is within average values for comparable stocks, (6.015). TDY's Projected Growth (PEG Ratio) (42.990) is very high in comparison to the industry average of (5.470). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (4.446) is also within normal values, averaging (32.028).
ESE | TDY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 6 | 31 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 93 Overvalued | 99 Overvalued | |
PROFIT vs RISK RATING 1..100 | 34 | 30 | |
SMR RATING 1..100 | 45 | 74 | |
PRICE GROWTH RATING 1..100 | 63 | 38 | |
P/E GROWTH RATING 1..100 | 93 | 40 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ESE's Valuation (93) in the Aerospace And Defense industry is in the same range as TDY (99). This means that ESE’s stock grew similarly to TDY’s over the last 12 months.
TDY's Profit vs Risk Rating (30) in the Aerospace And Defense industry is in the same range as ESE (34). This means that TDY’s stock grew similarly to ESE’s over the last 12 months.
ESE's SMR Rating (45) in the Aerospace And Defense industry is in the same range as TDY (74). This means that ESE’s stock grew similarly to TDY’s over the last 12 months.
TDY's Price Growth Rating (38) in the Aerospace And Defense industry is in the same range as ESE (63). This means that TDY’s stock grew similarly to ESE’s over the last 12 months.
TDY's P/E Growth Rating (40) in the Aerospace And Defense industry is somewhat better than the same rating for ESE (93). This means that TDY’s stock grew somewhat faster than ESE’s over the last 12 months.
| ESE | TDY | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 61% | 1 day ago 44% |
| Stochastic ODDS (%) | 1 day ago 74% | 1 day ago 52% |
| Momentum ODDS (%) | 1 day ago 55% | 1 day ago 58% |
| MACD ODDS (%) | 1 day ago 70% | N/A |
| TrendWeek ODDS (%) | 1 day ago 66% | 1 day ago 57% |
| TrendMonth ODDS (%) | 1 day ago 52% | 1 day ago 49% |
| Advances ODDS (%) | 6 days ago 62% | 6 days ago 55% |
| Declines ODDS (%) | 12 days ago 54% | 13 days ago 52% |
| BollingerBands ODDS (%) | 1 day ago 72% | 1 day ago 35% |
| Aroon ODDS (%) | 1 day ago 53% | 1 day ago 43% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ESE’s FA Score shows that 0 FA rating(s) are green while TDY’s FA Score has 1 green FA rating(s).
- ESE’s FA Score: 0 green, 5 red.
- TDY’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ESE’s TA Score shows that 5 TA indicator(s) are bullish while TDY’s TA Score has 5 bullish TA indicator(s).
- ESE’s TA Score: 5 bullish, 4 bearish.
- TDY’s TA Score: 5 bullish, 5 bearish.
Price Growth
ESE (@Electronic Equipment/Instruments) experienced а +2.33% price change this week, while TDY (@Electronic Equipment/Instruments) price change was +2.24% for the same time period.
The average weekly price growth across all stocks in the @Electronic Equipment/Instruments industry was -3.27%. For the same industry, the average monthly price growth was -13.02%, and the average quarterly price growth was -13.89%.
Reported Earning Dates
ESE is expected to report earnings on Nov 19, 2026.
TDY is expected to report earnings on Jan 27, 2027.
Industries' Descriptions
@Electronic Equipment/Instruments (-3.27% weekly)This industry manufactures electronic products used in various critical and sophisticated technologies, including laser-based systems, circuit and continuity testers, electro-optical measuring instruments and high-speed precision weighing and inspection equipment. Some major companies operating in this business are Canon Inc., Keysight Technologies Inc., and Fortive Corp.
Advertisement
TDY and
Correlation & Price change
A.I.dvisor indicates that over the last year, TDY has been loosely correlated with KEYS. These tickers have moved in lockstep 51% of the time. This A.I.-generated data suggests there is some statistical probability that if TDY jumps, then KEYS could also see price increases.
| Ticker / NAME | Correlation To TDY | 1D Price Change % | ||
|---|---|---|---|---|
| TDY | 100% | +0.26% | ||
| KEYS - TDY | 51% Loosely correlated | -2.69% | ||
| ST - TDY | 50% Loosely correlated | +2.38% | ||
| ESE - TDY | 50% Loosely correlated | +1.41% | ||
| MKSI - TDY | 47% Loosely correlated | -2.72% | ||
| VPG - TDY | 42% Loosely correlated | -4.69% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| OSCV | 41.56 | 0.50 | +1.22% |
| Opus Small Cap Value ETF (OSCV) | |||
| FMY | 11.27 | 0.07 | +0.63% |
| FIRST TRUST MORTGAGE Income FUND | |||
| HAPS | 37.53 | N/A | N/A |
| Harbor Human Capital Factor US Small Cap ETF (HAPS) | |||
| GUNR | 53.09 | -0.44 | -0.82% |
| Northern Trust Morningstar Global Upstream Natural Resources ETF (GUNR) | |||
| SKF | 22.68 | -0.83 | -3.55% |
| ProShares UltraShort Financials (SKF) | |||