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B/E Aerospace at 52-Week High on Positive Demand Outlook
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Shares of B/E Aerospace Inc. scaled a new 52-week high of $53.24 in Thursday’s trading session before closing at $53.11. The stock has delivered a one-year return of about 12.3%.
Over the past 52 weeks, B/E Aerospace’s shares have ranged from a low of $36.38 on Jan 20, 2016 to a high of $53.24 on Oct 6, 2016. The average volume of shares traded over the last three months is 902,476.
What’s Driving the Stock?
The company’s total backlog in the second quarter was nearly $8.9 billion.
Recently, B/E Aerospace secured a contract from a leading international airline to supply first-class suites for the carrier’s Boeing 777 fleet. The contract is worth nearly $450 million and it included an option portion of nearly $190 million.
Traffic growth and high profitability have been pushing aircraft deliveries by the two aircraft majors – Airbus Group SE (EADSY - Free Report) and The Boeing Company (BA - Free Report) . They are also two of B/E Aerospace’s most important customers.
Over the long run, global air traffic has been projected grow 4.5% to 5% on an annual basis, which would fuel demand for B/E Aerospace’s products. In fact, in such a scenario, B/E Aerospace’s Commercial Aircraft, which constitutes over 80% of the company’s business, is expected to surpass expectations. The company expects 2016 earnings around $3.25 per share, while revenues improve 5% from the 2015 levels.
Further, B/E Aerospace has established a strong foothold in China, Middle East and North America. Last year, the company had bagged 75% of the total Chinese orders and 80% of the total North American orders, riding high on its reputation for innovation, quality products, timely delivery and global customer support.
Zacks Rank & Key Picks
B/E Aerospace carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is AAR Corporation (AIR - Free Report) .
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B/E Aerospace at 52-Week High on Positive Demand Outlook
Shares of B/E Aerospace Inc. scaled a new 52-week high of $53.24 in Thursday’s trading session before closing at $53.11. The stock has delivered a one-year return of about 12.3%.
Over the past 52 weeks, B/E Aerospace’s shares have ranged from a low of $36.38 on Jan 20, 2016 to a high of $53.24 on Oct 6, 2016. The average volume of shares traded over the last three months is 902,476.
What’s Driving the Stock?
The company’s total backlog in the second quarter was nearly $8.9 billion.
Recently, B/E Aerospace secured a contract from a leading international airline to supply first-class suites for the carrier’s Boeing 777 fleet. The contract is worth nearly $450 million and it included an option portion of nearly $190 million.
B/E AEROSPACE Price and Consensus
B/E AEROSPACE Price and Consensus | B/E AEROSPACE Quote
Traffic growth and high profitability have been pushing aircraft deliveries by the two aircraft majors – Airbus Group SE (EADSY - Free Report) and The Boeing Company (BA - Free Report) . They are also two of B/E Aerospace’s most important customers.
Over the long run, global air traffic has been projected grow 4.5% to 5% on an annual basis, which would fuel demand for B/E Aerospace’s products. In fact, in such a scenario, B/E Aerospace’s Commercial Aircraft, which constitutes over 80% of the company’s business, is expected to surpass expectations. The company expects 2016 earnings around $3.25 per share, while revenues improve 5% from the 2015 levels.
Further, B/E Aerospace has established a strong foothold in China, Middle East and North America. Last year, the company had bagged 75% of the total Chinese orders and 80% of the total North American orders, riding high on its reputation for innovation, quality products, timely delivery and global customer support.
Zacks Rank & Key Picks
B/E Aerospace carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is AAR Corporation (AIR - Free Report) .
AAR Corp. has witnessed one upward estimate revision for fiscal 2017 over the last 60 days. The stock carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>