Thursday, June 26, 2014

Reasons to Like Precision Castparts

A quick look at aerospace-focused component manufacturer Precision Castparts'   share price reveals much about the market's mood in 2014. After a good 2013, the stock is down 6% this year. It's almost as if the market has already priced in a cyclical recovery in the aerospace sector, and is now asking, "What next"? Indeed, the share price of its major customer, The Boeing Company  is also down year to date, while its peer Triumph Group  is also down. Is the market right to worry, or is this weakness a potential buying opportunity?


Boeing and Triumph Group give mixed results
It's no secret in the investing world that industry peer groups tend to move together, but that doesn't mean that the movements always make sense. In this case, Precision Castparts' prospects actually have gotten better in 2014, while Boeing and Triumph Group have both had issues as the year developed.

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