HXL - 3 Aerospace & Defense Stocks to Buy Hand Over Fist in February
2024-02-02 06:32:00 ET
With aerospace giants like RTX and General Electric already reporting and giving estimates for another year of solid growth in the original equipment manufacturer (OEM) and aftermarket, it's time to turn to some aerospace-related stocks the market may be dismissing too quickly. In this context, I think Delta Air Lines (NYSE: DAL) and lesser-known aerospace suppliers Hexcel (NYSE: HXL) and Carpenter Technology (NYSE: CRS) are worth picking up for investors looking for aerospace exposure.
The main reason why aerospace suppliers expect a strong year is because the air travel recovery is continuing, which means more airline profits, leading to more aircraft deliveries and airplane servicing. It makes sense to look at an airline like Delta Air Lines.
The stock was hit in January after its fourth-quarter 2024 earnings were released. In summary, the market took a dim view of management lowering its earnings and free cash flow (FCF) guidance for 2024. Instead of earnings per share above $7, management now expects $6 to $7 (Wall Street analysts have a consensus of $6.48). Instead of FCF above $4 billion, management now expects $3 billion to $4 billion (Wall Street has $3.39 billion).
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3 Aerospace & Defense Stocks to Buy Hand Over Fist in February