4 Aerospace Sector Stocks With Rising Inventory Turnover

Screen Criteria:

All of the Aerospace companies mentioned below have reported improving inventory turnover ratios.

Average Weekly Returns:

Average 1-Week Return of All Stocks Mentioned Below: 0.16%

Average 1-Month Return of All Stocks Mentioned Below: -0.47%

Analysis of List Alpha:

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Week): 1 out of 4 (25.0%)

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Month): 0 out of 4 (0.0%)

Chart: Distribution of 1-Week Returns For All Stocks Mentioned Below


Chart: Distribution of 1-Month Returns For All Stocks Mentioned Below



(List sorted by monthly performance, from best to worst)

1. CAE Inc. (CAE): Designs, manufactures, and supplies simulation equipment and services; and develops integrated training solutions to the military, commercial airlines, business aircraft operators, aircraft manufacturers, and healthcare education and service providers worldwide. Revenues increased by 18.66% during the most recent quarter ($514.4M vs. $433.5M y/y), while the size of inventory changed by 14.25% ($162.8M vs. $142.5M y/y). Inventory, as a percentage of current assets, decreased from 13.52% to 13.4% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

2. Triumph Group, Inc. (TGI): Engages in the design, engineering, manufacture, repair, overhaul, and distribution of aircraft components. Revenues increased by 18.68% during the most recent quarter ($938.18M vs. $790.53M y/y), while the size of inventory changed by 8.95% ($891.35M vs. $818.13M y/y). Inventory, as a percentage of current assets, decreased from 64.19% to 62.34% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

3. TASER International Inc. (TASR): Develops, manufactures, and sells electronic control devices (ECD) for use in the law enforcement, military, corrections, private security, and personal defense markets. Revenues increased by 18.01% during the most recent quarter ($28.77M vs. $24.38M y/y), while the size of inventory changed by -32.58% ($10.43M vs. $15.47M y/y). Inventory, as a percentage of current assets, decreased from 22.23% to 16.43% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

4. Embraer SA (ERJ): Engages in the development, production, and sale of jet and turboprop aircraft for civil and defense aviation markets. Revenues increased by 3.0% during the most recent quarter ($1,404.5M vs. $1,363.6M y/y), while the size of inventory changed by -9.98% ($2,581.6M vs. $2,867.7M y/y). Inventory, as a percentage of current assets, decreased from 50.24% to 45.48% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

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