HXL - These 3 Unique Stocks Have Undeniable Long-Term Upside
2023-08-10 06:58:00 ET
Advanced composites provider Hexcel (NYSE: HXL) , work process technology company Trimble (NASDAQ: TRMB) , and sensing and power solutions company ON Semiconductor (NASDAQ: ON) are companies going places. They all offer unique investment propositions for long-term investors. Here's why all three are attractive stocks to buy.
I've covered Hexcel and its recent second-quarter results in more length elsewhere . The earnings report wasn't well received, and the stock sold off in its aftermath. However, I think the market is wrong. Hexcel raised every aspect of its full-year guidance bar except ree cash flow , but that was because of a conscious decision to buy a facility it's leasing. The market may also have worried about the sequential decline in gross margin, but it comes mainly from a solid first-quarter margin.
Longer term, its key customers Boeing and Airbus continue to ramp up airplane production, and Boeing's CEO Dave Calhoun believes composites will play a significant role in the next plane Boeing develops, as well as newer airplanes such as the Airbus A220-500 and larger business jets.
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These 3 Unique Stocks Have Undeniable Long-Term Upside