CAE remains your better choice

Article Excerpt

The easing of COVID-19 travel restrictions continues to benefit these two aerospace stocks. However, CAE’s exposure to both military and healthcare customers makes it a better pick than business jet maker Bombardier. CAE INC. $31 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 317.9 million; Market cap: $9.9 billion; Price-to-sales ratio: 2.5; Dividend suspended in March 2020; TSINetwork Rating: Average; is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 35 countries and makes medical-simulators for training health professionals. CAE continues to benefit from stronger demand for simulators and training from airlines as air travel volumes return to pre-pandemic levels. It’s also seeing better demand from military clients. The company’s revenue in its fiscal 2023 third quarter ended December 31, 2022, gained 20.2%, to $1.02 billion from $848.7 million a year earlier. The higher revenue also pushed up earnings before unusual items by 47.4%, to $0.28 a..