2 Under-the-Radar Growth Stocks
In a volatile year for the stock market, one sector in the industrial world has been noteworthy for its consistency and ability to reward investors: Aerospace. It has been the standout segment in the results of large industrial conglomerates like GE, Honeywell, and United Technologies even as growth has slowed in other industrial sectors such as automotive, semiconductors, and even food and beverage.
As such, investors looking for smaller and more aerospace-focused companies won't be surprised to see that HEICO (NYSE: HEI) and Hexcel (NYSE: HXL) are up big in 2019. Let's look at both stocks to see whether their outperformance can continue, and which is the better buy.
The case for a long-term investment in the industry is based on the startling turnaround in airline profitability since the last recession. From being an industry that struggled to cover its cost of capital in previous decades, the worldwide commercial airline industry has significantly restructured and is now going through a period of unprecedented profitability -- best seen in the multiyear backlogs at Boeing (NYSE: BA) and Airbus.
Source Fool.com
