Topic: How To Invest

What is Pat’s commentary for the week of May 10, 2022

Article Excerpt

The outbreak of COVID-19 and a weakening global economy sharply slowed air travel volumes and demand for new planes in both 2020 and 2021. However, the outlook for CAE—a leading provider of flight simulators and pilot-training services—remains bright. Airlines and their service providers still face challenges from COVID-19 variants and restriction on many international destinations. However, CAE will continue to gain as the industry moves back toward normal. As a leader, the company now has roughly 70% of the global flight simulator market and is well-positioned to remain the top global choice for pilot training on commercial aircraft. Meantime, a couple of CAE’s markets—outside of the commercial airline industry—should continue to offset short-term turbulence caused by the COVID-19 virus: First, demand for the company’s military training operations will remain steady, if not accelerate because of the Russian invasion of Ukraine; and second, CAE continues to expand its line of medical simulators and training programs. Our Successful Investor research department drew up this Inner…