These 2 Special Situations Have Undeniable Long-Term Upside
There's nothing unique about these aerospace-focused companies, but there is something special about their investment propositions. Both stocks require investors to think differently about why they invest in the company. So let's examine why advanced composites materials company Hexcel (NYSE: HXL) and aerospace giant Boeing (NYSE: BA) are such unusual investments right now.
Hexcel is a manufacturer of advanced composites that offer strength and weight advantages over conventional metals. As such, they help reduce fuel costs without sacrificing structural integrity.
The company stands out from most of its peers in two different ways. Aerospace suppliers tend to generate revenue from the original equipment manufacturer (OEM) and aftermarket sales. In addition, OEM sales are usually closely tied to aircraft production rates and manufacturers like Boeing and Airbus.
Source Fool.com