BE Aerospace (BEAV) makes products that fill out the interior of jet aircraft, such as seats, galleys and overhead bins. Its product line includes seats, footrests, reading lights, head supports, airplane coffee makers and warming ovens, galley systems, wastewater systems and much more. It tends to do well as a multiple of large aircraft makers like Boeing (BA). In that way it is similar to Precision Castparts (PCP), which makes engineered products used in aircraft manufacturing. BEAV tends to do better than both of those larger companies because it starts from a lower base and its business model is highly geared to perform especially well in up-cycles.
Click to EnlargeShares have risen briskly this year, though the journey has been dotted with touches of its 40-day average. It touched that support and rebounded Thursday, then opened lower on Friday and shot up at the close. I’m anticipating that this bullish trend will continue.
Recommendation: Buy BEAV under $63.50 for a $68.15 target.
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InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage, which aims to capture profits of 15% to 40% and often as much at 100% to 200% in less than 90 days.
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