Aerospace Stocks Begin to Climb

With the economy on the rebound, it is great to see aerospace stocks leading the way with shares of publicly traded companies making great strides for the first time in several years.

And one of the key reasons why these companies are growing is due to the defense contracts that the government is supplying to the industry. Forbes had this to say about the economic rebound,

“So, how to hedge your bet? With economic recovery now a fact, the mixed suppliers such as Boeing and Rockwell-Collins, which derive about half their business from defense programs, should do pretty well even under the big cut case. The 787 Dreamliner ramp should offset most defense stagnation, which in the case of Boeing came in the form of numerous big-ticket weapons system cancellations last year. Without a successful 787, Boeing would be in a world of hurt but it now looks full speed ahead.”

Some of the brigh spots in the aerospace industry are:

• United Technologies (UTX)
• Goodrich (GR)
• Precision Castparts (PCP)
• BE Aerospace (BEAV)
• Spring AeroSystems
• Hexel (HXL)

As the war expands, it appears that the current rebound is simply the start of a great expansion in the aerospace marketplace.