Let's get serious here, Precision Castparts is a class act... and management is running a tight ship. I feel like a lot of the abuse their stock price has endured has come from a downfall in commercial aerospace, which shouldn't be the case. I'm looking at strong growth once again from aircraft engine parts as a driver for PCP to once again trounce earnings.
Do they deserve to be under $100? It feels downright criminal to me. I'm feeling good reason to buy now and ride it out till earnings, which I feel will be perfectly fine. If you look at the post-earnings transcript (which was positive), nothing has really changed save a downgrade on Boeing and some cancelled orders that aren't going to burn PCP.
Thoughts about quarterly earnings?
Earnings is all about guidance, if this forcast is worse than the last the stock is likely to go down. The market is forward looking and it won't amount to a hill of beans if this quarter is great and the guidance is lower, which is possible. Also, this is a bear market and the market is not going to award even the good stocks as high an earning multiple as it would normally. Everything could stay the same with the company and PE contraction can make price per share go down.
Been through this many times since I first owned PCP and still own some of my original purchase in 1979. I don't expect to ever sell most of it. One of those stock I've never been wrong on, except when I sold some about 10 years ago.
I agree with you, the fact the PCP is under 100 is only because aerospace is getting beaten up, but that really should not effect PCP. I feel they will beat estimates or atleast meet them. It is a very well run company who everybody likes. check around everybody is bullish on the stock. Down 6th day in a row, I predict bounce