#6 - CAE (NYSE:CAE)
CAE Inc. (NYSE: CAE) is a mid-cap defense stock that merits consideration. The company has a lofty forward P/E ratio of around 24x earnings. Along with its mid-cap status, that can help explain the short interest, which has increased since August and is keeping CAE stock from rising above a level of support around $20.40.
However, with projected earnings growth of over 29%, analysts are projecting a 67% increase in the company’s stock next year.
How likely is that to happen? It seems more likely now than it did earlier this year. That's because, in October 2023, CAE sold its healthcare business. That consolidates the business into Civil Aviation and Defense and Security. According to the company, the move was being made to allow the company to "allocate capital and resources to secure the many attractive growth opportunities on the horizon in our much larger, core simulation and training markets."
About CAE
CAE Inc, together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions.
Read More - Current Price
- $22.86
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $25.00 (9.4% Upside)
