- USAP reported improving revenue and margins in the fourth quarter, as the aerospace inventory correction cycle is over and companies are looking to increase build rates.
- USAP generates around 60% of revenue from the aerospace market, the backlog is growing, and management is looking to add two more VIM furnaces to increase its premium alloy capacity.
- The long-term track record here doesn't make this a quality buy-and-hold name, but the leverage to the aerospace recovery cycle should support a higher stock price.
For further details see:
With Aerospace Recovering, Universal Stainless & Alloy Products Should See A Meaningful Ramp