Why Heico Is a Better Aerospace Stock Than Boeing
It has been a difficult start of the year for commercial aerospace, as the COVID-19 pandemic has sunk global travel demand and sent airlines scrambling to cut costs and avoid liquidity issues. Airlines are grounding jets and canceling expansion plans, putting the companies that build planes and supply spare parts under pressure as well.
Aerospace shares have underperformed the broader market and seem likely to remain under pressure well after the pandemic is contained and the broader markets have a chance to stabilize.
The fallen stock prices also have bargain hunters on the lookout, with aerospace giant Boeing (NYSE: BA), down 60% year to date, of particular interest to potential investors. Boeing shares are certainly cheaper than they were a few months ago, but even after the fall, they do not strike me as particularly inexpensive. Here's why a lesser-known aerospace company, Heico (NYSE: HEI), is a much better buy even though its stock has fallen only half as much as Boeing shares have.
Source Fool.com
