As we discussed in the previous part of this series, the aerospace industry contributed a return of 0.83% to FEZ’s performance on Wednesday, January 13. Aerospace stock Airbus (EADSY) returned 0.83%.
Things turned around for Airbus
- Airbus’s chief executive officer, Fabrice Brégier, said at the airline’s annual conference that the company is relaxed about China. The company is expecting huge demand from Asia.
- According to Brégier, air transportation demand will increase in Asia due to lower crude oil prices. The company should benefit significantly because of lower crude oil prices.
- The company expects optimistic growth in 2016, which it had delivered in 2015.
- Airbus also plans to introduce a bigger version of its A350 aircraft to compete with Boeing’s 777x market share.
Airbus is currently trading at 59.49 euros. Its 52-week high is 68.50 euros and its 52-week low is 44.17 euros. The stock returned 50% in 2015. Its current price-to-earnings ratio is 16.43x, which is cheaper than its peer Boeing (BA).
Airbus is currently trading 7% below its 50-day moving average, 4% below its 20-day moving average, and at par with its 100-day moving average. The stock is now rising and trading near its 100-day moving average. It’s trading between relative strength indexes of 70 and 30. This shows that the stock is trading in neither overbought nor oversold territory.
Analysts’ estimates indicate an upside of 20% for Airbus over the coming 12-month period from its current levels as of January 13, 2016.
In the next part of this series, we’ll analyze the performance of FEZ’s bottom stocks on January 13, 2016.