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General Electric Company (GE), Hexcel Corporation (HXL), Cytec Industries Inc (CYT): A Trio Of Light Plane Winners

Engines

Another way to save fuel is to use more efficient engines. General Electric is using new materials within its jet engines to make that happen. Specifically, the company is using lightweight ceramics. General Electric Company (NYSE:GE) notes that if you remove a pound from a spinning object you can also take as much as three pounds from the parts used to support the object. Engines are heavy, so you are talking about huge weight savings that will translate directly to large fuel savings. General Electric Company (NYSE:GE)’s ceramics push is making that happen.

General Electric Company (NYSE:GE) shares have moved up over the past couple of years as it has started to refocus on its industrial business, divest non-core assets like NBC, and recover from the financial crisis. While such large divestitures complicate the top line, the bottom line has been improving since 2009. Although the finance arm is still too large, management is slowly changing that, too. A P/E around 16 suggests that this industrial giant is fairly priced. And an around 3.3% dividend yield is ample payment to wait for an eventual turnaround that appears to have already started.

Weighty

General Electric Company (NYSE:GE) is probably the best option of the three for income investors. It is also the cheapest from a valuation perspective. However, advances in airplanes will likely have the least impact on this diversified giant. As such, growth investors will probably prefer Hexcel Corporation (NYSE:HXL) or Cytec Industries Inc (NYSE:CYT). Like General Electric Company (NYSE:GE), Cytec Industries Inc (NYSE:CYT) has seen a lot of change on the corporate front and it’s priced at a premium valuation when compared to Hexcel Corporation (NYSE:HXL).

The article A Trio Of Light Plane Winners originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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