Precision Castparts is the world leader in structural investment castings, forged components, and airfoil castings for aircraft engines and industrial gas turbines. The security comes back upon contact with important technical level that might give fresh impetus to a rebound.

In 2013, the profitability of the company should improve as the net margin growth shows. It should be at 18.3% in 2014 against 17.5% for 2013 and sales are expected to increase. To date, PER for 2013 is estimated at 16.1x and at 14.1x for 2014.

From a technical viewpoint, the trend is neutral in the short term. The security is trading between USD 158.3 and USD 177.5. The latest downtrend pushed the security upon contact with important levels (in the long and mid-term).These supports, at USD 158.4 and the slant, could stop the bearish trend of these last days.

As a result, active investors can take immediately a long position in Precision Castparts thanks to the close proximity of the USD 158.4 support area and the slant. The target price is USD 169.7 and in case of breakout of this level, the second target price would be the long-term resistance at USD 177.5. If there is a breakdown of the USD 158.3 support, investors should close their positions.