Forward sales and earnings growth estimates are strong, it has a decent debt level, improving margins, a growing balance sheet, and it trades at a decent valuation of 18.7X forward earnings and 1.4X book. The stock has mostly been flat over the past several years, but management feels that the momentum of its strategic initiatives over the next few years allows it to envision a continued upward trend in sales volume and profitability beyond the numbers it has achieved in the past. It reported strong results, and we feel that if the aerospace and defense sector increases spending in the coming years, that HRX is well-positioned. We think it is beginning to look interesting here.
5i Research Answer: