Entries filed under 'Manufacturing'

    Research in Action: Changing Flights on Aerospace Stocks

    May 9, 2014 12:32 PM by Rama Bondada

    Now that some of the world's leading aircraft manufacturers have had quite a run over the last two years, certain aftermarket companies appear more attractive.  

    For an aerospace and defense analyst, there's nothing like watching mega cap stocks jump 80%. That's what two leading aerospace companies did over the last two years, thanks to sharply higher demand from emerging markets; a healthier airline industry; and dramatic improvements in lightweight composite materials, fuel efficiency, and avionics.

    While the order backlog for major aerospace companies remains strong, the two biggest manufacturers have held the rate of production flat to give the rest of the supply chain a chance to catch up. As a result, I’ve shifted my focus to aftermarket companies that supply a wide variety of high-margin products that remain very much in demand. 

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