In a week that saw the Aerospace & Defense industry soar, one stock stood out from the crowd. Héroux-Devtek (HRX) surged an impressive 21.2%, eclipsing the industry average of 7.1%. The stock’s performance was a stark contrast to Bombardier’s slide of 7.0% during the same period.
A Mixed Day for Héroux-Devtek
Despite the impressive weekly gains, Héroux-Devtek experienced a mixed trading day in the Canadian market. The stock opened at $18.47 and saw a price decrease of -1.15 percent. However, the trading volume was robust, with a total of 18,980 shares exchanged. The stock swung between a low of $17.95 and a high of $18.47.
Analysts Bullish on Héroux-Devtek
With a market capitalization of $607.45 million and an annual EPS of $0.70, analysts have given Héroux-Devtek a consensus rating of ‘Moderate Buy’. The landing gear manufacturer reported a 16.1% increase in sales during the quarter, driven by inflation and growth in its defensive businesses. Analysts are optimistic about further margin increases in the future, with the stock rated as a ‘buy’.
Brookfield Asset Management and Finning International
Brookfield Asset Management (BAM) also had a strong quarter, with fee-related EPS up 1% year over year, beating estimates. Analysts predict a 17% compound annual growth rate in EPS over the next five years, driven by revenue tailwinds and increased free cash flow margin.
Finning International (FTT), a heavy equipment dealer, reported a short-term disappointment with revenue falling below expectations. However, analysts remain bullish on its long-term prospects. The company is projected to reach peak earnings of $4, and its stock is trading at a reasonable valuation of 10.78 times earnings.
As we look to the future, the Aerospace & Defense industry continues to show strong growth potential. With companies like Héroux-Devtek and Brookfield Asset Management leading the charge, investors are optimistic about the opportunities that lie ahead.
Note: The above article is written based on the provided summaries and does not represent real-time market data or financial advice. Always consult a financial advisor before making investment decisions.
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