Moog Inc. (MOG.A), with a strong backlog, low debt and strong return on equity (ROE), offers a great investment opportunity in the Aerospace sector.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a promising investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for MOG.A’s fiscal 2024 earnings per share has increased 5.3% to $7.33 per share in the past 90 days. The Zacks Consensus Estimate for Moog’s total revenues for fiscal 2024 stands at $3.57 billion, which indicates growth of 7.7% from the fiscal 2023 reported figure.
The company delivered an average earnings surprise of 12.07% in the last four quarters.
ROE
ROE indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Moog’s ROE is 13.81% compared with its industry’s average of 11.67%. This indicates that the company has been utilizing its funds more constructively than its peers in
the industry.
Rising Backlog
Moog’s solid order activities resulted in a backlog of $2.50 billion as of Mar 30, 2024, which witnessed an improvement of 8.7% from the year-ago quarter. This rise was driven by increased orders for its commercial aircraft, space and defense, as well as military aircraft programs.
Dividend History
The company has been increasing shareholder value through dividend payments. On Apr 26, 2024, Moog announced a quarterly dividend of 28 cents per share, resulting in an annual dividend of $1.12 per share. Its current dividend yield is 0.65%, better than the industry’s dividend yield of 0.19%.
Debt Position
Moog’s times interest earned ratio (TIE) at the end of the second quarter of fiscal 2024 was 4.4. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
At the end of the second quarter of fiscal 2024, MOG.A’s total debt to capital was 35.11%, much better than the industry’s average of 53.52%.
Price Performance
In the past six months, Moog shares have risen 21.2% compared with its industry’s average return of 15.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Leidos Holdings, Inc. LDOS, AAR Corp. AIR and Heico Corporation HEI, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Leidos’ long-term earnings growth rate is pegged at 11.1%. The Zacks Consensus Estimate for LDOS’ 2024 sales is pegged at $16.15 billion, which suggests a year-over-year improvement of 4.6%.
AAR delivered an average earnings surprise of 3.96% in the last four quarters. The Zacks Consensus Estimate for AIR’s fiscal 2024 revenues is pegged at $2.32 billion, indicating a year-over-year rise of 16.7%.
Heico’s long-term earnings growth rate is pegged at 19.1%. The Zacks Consensus Estimate for HEI’s fiscal 2024 sales is pegged at $3.87 billion, which indicates a year-over-year improvement of 30.3%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
AAR Corp. (AIR) : Free Stock Analysis Report
Moog Inc. (MOG.A) : Free Stock Analysis Report
Heico Corporation (HEI) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
