The story: National and regional airlines around the world are rapidly expanding fleets with new aircraft orders. Existing airlines are gearing up to do battle by making sure critical parts get replaced on or ahead of schedule to minimize downtime and delays.
A key beneficiary: Heico, the largest independent designer, manufacturer and distributor of Federal Aviation Administration-approved jet engine and aircraft component replacement parts in the world.
The stock is in a buying range after finding support at its 10-week line. Volume has been light on the rebound, but it's in good company. Its industry group, Aerospace/Defense-Equipment, has advanced from 140 th out of 197 groups to 92 nd in the past month. Lufthansa Technik AG owns 20% of Heico.
The absence of flight (as in escape) explains much of the success of Geo Group. The private prison operator is also riding a low-volume bounce off its 10-week line.
The company's earnings per share grew 94%, 144% and 79% in the past three quarters. That's sharply better than the prior three periods, when EPS went from a decline of 43% to flat.
Quarterly sales growth accelerated the past few quarters to 49% in the third quarter, Geo's best performance in at least five years.
Copyright 2005 LexisNexis, a division of Reed Elsevier Inc. All rights reserved.
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