Why Hexcel (HXL) Stock Is Falling Today

What Happened:

Shares of aerospace and defense company Hexcel (NYSE:HXL) fell 5.9% in the morning session after the company reported second quarter earnings results. Its full-year EPS forecast was underwhelming and its full-year revenue guidance was lowered to slightly below Wall Street's estimates. On the other hand, Hexcel blew past analysts' revenue and EPS estimates during the quarter. Zooming out, we think the quarter was fine, but the guidance is weighing on shares.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hexcel? Access our full analysis report here, it's free.

What is the market telling us:

Hexcel's shares are somewhat volatile and over the last year have had 4 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Hexcel is down 13% since the beginning of the year, and at $63.36 per share it is trading 17.8% below its 52-week high of $77.08 from July 2023. Investors who bought $1,000 worth of Hexcel's shares 5 years ago would now be looking at an investment worth $793.41.

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