B/E Aerospace Inc (BEAV): Today's Featured Aerospace/Defense Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

B/E Aerospace ( BEAV) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 0.4%. By the end of trading, B/E Aerospace rose $1 (1.7%) to $60.28 on average volume. Throughout the day, 899,211 shares of B/E Aerospace exchanged hands as compared to its average daily volume of 801,700 shares. The stock ranged in a price between $59.04-$60.36 after having opened the day at $59.25 as compared to the previous trading day's close of $59.28. Other companies within the Aerospace/Defense industry that increased today were: Aerosonic Corporation ( AIM), up 6%, Edac Technologies Corporation ( EDAC), up 4.6%, Innovative Solutions and Support ( ISSC), up 3.4%, and Sifco Industries ( SIF), up 2.7%.
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B/E Aerospace, Inc. designs, manufactures, sells, and services cabin interior products for commercial aircraft and business jets worldwide. It operates in three segments: Commercial Aircraft, Consumables Management, and Business Jet. B/E Aerospace has a market cap of $6.23 billion and is part of the industrial goods sector. The company has a P/E ratio of 26.2, above the S&P 500 P/E ratio of 17.7. Shares are up 20% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate B/E Aerospace a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates B/E Aerospace as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the aerospace/defense industry could consider iShares DJ US Aerospace & Def Idx ( ITA) while those bearish on the aerospace/defense industry could consider ProShares Short Dow 30 ( DOG).

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