Defence stocks have been a terrific hold over the past year. This has been true in the United States and Canada, where both governments have pledged big hikes in defence spending. That impact has been more immediate in the U.S., whereas Canada has taken a long-term approach to its increase.
Firan Technology (TSX:FTG) is a Toronto-based supplier of aerospace and defence electronic products and subsystems. Shares of Firan have climbed 61.1% in 2019 as of close on April 17. The stock is up over 50% from the prior year.
The company released its fourth-quarter and full-year results for 2018 on February 6. Firan achieved record full year sales of $109.4 million compared to $94.7 million in the prior year. It also reported record EBITDA of $10.5 million which was up 38% from 2017.
Net income shot up 127% from the previous year to $2.9 million. The big news for Firan in 2018 was the fact that it secured a multi-million-dollar contract with FlightSafety for KC-46 simulator cockpit assemblies. It also boasts ongoing work with another Canada-based aerospace and defence giant, CAE Inc. (TSX:CAE)
Firan is trading at the high end of its 52-week range. Shares had an RSI of 62 as of close on April 17. This puts it close to overbought territory in the latter half of April. Shareholders should think about taking profits as this hot market extends into the middle of spring.
