Small Cap Aerospace Stocks Taking Off (AIR, BEAV, BA)

Strong earnings recently reported by B/E Aerospace (NASDAQ: BEAV) have lifted the sector, ranging from small cap like AAR Corp (NYSE: AIR) to members of the Dow Jones Industrial Average such as Boeing (NYSE: BA).

AAR Corp provides services both the private and public sector around the globe.  It has seven operating subsidiaries coming under four business segments: aviation supply; government and defense services; maintenance, repair and overhaul; and support structure.  .

AAR Corp (AIR) has ascended $0.86 to $22.05, 4.06% higher as aerospace stocks are flying high due to the strength of earnings of B/E Aerospace (BEAV).  Year to date, AAR Corp is up 10.94%.  For the last week of trading, AAR Corp is up 0.81%. 

Now trading around $22, the analyst target over the next year is $26.51.  The price-to-earnings ratio is 12.46, below the average for the Standard & Poor's 500 Index.  Analysts predict that earnings will rise from $1.90 a share in Fiscal Year 2012 to $2.42 a share in Fiscal Year 2013.  AAR Corp is well below its high for the last 52 weeks of trading of $31.66.  AAR Corp pays a dividend of 1.34%.