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Spirit AeroSystems - AI Stock Analysis

Analysis generated June 22, 2024

Spirit AeroSystems is one of the world’s largest designers and manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. With a diversified product portfolio, Spirit AeroSystems is primarily known for its supply of fuselages, underwing components, and flight control surfaces. The company has been a significant contributor in the aerospace sector and maintains long-standing relationships with major aircraft manufacturers such as Boeing and Airbus.

Fundamental Analysis

For the latest quarter, Spirit AeroSystems reported a revenue of $1.7 billion. This revenue figure represents a decrease of 6.07% compared to the previous quarter, which may indicate underlying issues that need addressing. However, it’s essential to note the positive year-over-year growth of 18.96%, which demonstrates the company’s resilience and ability to recover from the pandemic-driven lows.

Net income for the last quarter was concerningly reported at $617 million, a decrease of 917.90% compared to the previous quarter. This drastic decline is alarming and may point to substantial one-time charges or operational inefficiencies. Similarly, the EBITDA for the last quarter stood at $591 million, reflecting a decrease of 628.24% quarter-over-quarter and a year-over-year decrease of 119.09%.

The current P/E ratio is 17.25, which appears to be within a normal range. This indicates that, among peers, Spirit AeroSystems is neither overvalued nor undervalued, suggesting a balanced market sentiment towards the stock.

Technical Analysis

Today's stock price stands at $33.56, marking a 6.61% increase compared to a month ago. This uptick indicates a positive short-term momentum. Over the longer term, the stock price has increased by 19.43% in the past year, suggesting a reinforced bullish sentiment.

The technical indicators further add weight to this bullish outlook. The SMA10 has improved from 30.52 to 30.90, suggesting a potential upward trend in price movement. The RSI is at 64.3, which is in the neutral zone but is closer to the overbought territory, indicating that the stock is experiencing moderate positive momentum without excessive market exuberance.

Alternative Data Analysis

Spirit AeroSystems is currently hiring for 188 open positions, a significant 43% reduction in job postings over the last couple of months. This may indicate a strategic move towards cost-cutting or margin improvement, but it isn't generally a favorable sign for a growing company. Correspondingly, the business outlook has also declined by 6%, reinforcing concerns about the company's short-term trajectory.

In terms of customer engagement, Spirit AeroSystems receives an estimated 150,000 visitors to its website without any significant variation in recent months. Social media engagement also remains static with 2,000 Instagram followers and 11,000 Twitter followers. This stagnation might be a point of concern in a highly competitive and innovation-driven industry.

Finally, the AltIndex's AI predictive score for Spirit AeroSystems stands at 49, signaling a 'hold' recommendation. This score is derived from a comprehensive analysis of fundamental, technical, and alternative data points.

Conclusion and Recommendation

Based on an extensive analysis of Spirit AeroSystems' fundamentals, technical indicators, and alternative data, the stock presents a balanced outlook. While there are notable concerns regarding last quarter's financial performance, especially in terms of net income and EBITDA declines, the year-over-year growth in revenue paints a more optimistic picture overall. The technical analysis indicates a current bullish trend that could appeal to short-term investors.

However, the alternative data presents a mixed picture with a decrease in job postings and a downward adjustment in the business outlook. The neutral AI score of 49 further recommends a hold position.

Therefore, my recommendation would be to hold Spirit AeroSystems' stock, keeping a close eye on upcoming quarterly results and any potential catalysts that could affect the stock’s trajectory. Investors should also monitor industry trends and macroeconomic factors that could further impact the aerospace sector.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.