A Big Upgrade for BE Aerospace

Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track record of the company behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 115,000 members, many of whom demonstrate better investing insight than published analysts do.

After a fall from CAPS' graces early in the summer, some high-ranking members have hopped back onboard BE Aerospace (Nasdaq: BEAV) and recently upgraded the company through the three and four-star ranks, all the way back up to five stars. A total of 571 members have given their opinion on BE Aerospace, enough to give investors a fine looking glass in which to view what's behind the recent change in sentiment.

No doubt about it -- the outlook for commercial airline carriers is as bleak as it's ever been. True, major airlines such as AMR's (NYSE: AMR) American, Continental (NYSE: CAL), Delta (NYSE: DAL), and UAL's (Nasdaq: UAUA) United are all trying new tricks to become profitable again during a time of soaring fuel costs. And aircraft-cabin interiors manufacturer BE Aerospace tends to rise and fall with the latest whispers concerning manufacturers and carriers -- such as in late June, when analysts opined that a slowdown in jet orders and war spending would hit the industry.

But BE Aerospace isn't as exposed to the struggling airline industry as many investors fear. It brings in revenue from contracts with Boeing (NYSE: BA) and Airbus, and domestic carriers account for only a small portion of the company's backlog. Business jet cabin products also helped it achieve record profits for the second quarter, which nearly doubled to $53.9 million. And with its completed purchase of Honeywell's (NYSE: HON) Consumables Solutions distribution business, the combined distribution segment is expected to generate more than 50% of BE's operating earnings in 2009. With its strong position and added diversity, more than 97% of the CAPS members rating BE Aerospace expect the stock to fly higher and outperform the market.

To see what the very best CAPS analysts are saying now about BE Aerospace -- as well as other winning stocks they are picking -- head on over to CAPS and have a look.

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