We still prefer CAE for your new buying

Article Excerpt

The shares of these two aerospace firms are down since the start of 2024, as investors worry about the impact less-profitable products will have on their earnings. We still prefer CAE for your new buying, as it’s in a better position to rebound as travel volumes continue to recover in the wake of the pandemic. CAE INC. $27 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 318.1 million; Market cap: $8.6 billion; Price-to-sales ratio: 2.2; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 40 countries. CAE recently sold its healthcare operations, which make mannequins and other medical simulators for training health professionals, for $311 million. Meantime, the company continues to see stronger demand from airlines as air travel volumes return to pre-pandemic levels. Sales to military clients also improved. As a result, CAE’s revenue (excluding the healthcare…