HXL Should I Buy
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Hexcel Corp (HXL) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company has strong growth prospects, supported by improving aerospace production rates, a solid financial performance in Q4 2025, and positive sentiment from hedge fund activity. While the stock is currently overbought (RSI at 80.55), the long-term outlook and analyst upgrades suggest a favorable entry point, especially given the investor's long-term horizon.
The stock is in a bullish trend with MACD positively expanding and moving averages showing strength (SMA_5 > SMA_20 > SMA_200). RSI at 80.55 indicates overbought conditions, but the stock is trading near its resistance level (R1: 91.028). Pivot support is at 86.009, providing a solid base.
Analysts have upgraded ratings and raised price targets, with multiple firms projecting a price target of $90-$
Hedge funds are significantly increasing their positions, with a 593.28% increase in buying activity.
Strong Q4 2025 financial performance, including a 700% YoY increase in net income and 757.14% YoY EPS growth.
Improving aerospace production rates at Boeing and Airbus, which directly benefit Hexcel.
Insiders are selling shares, with a 578.83% increase in selling activity over the last month.
Margins remain a concern, with gross margin dropping 1.52% YoY in Q4
The stock is currently overbought, as indicated by RSI of 80.55, which may lead to short-term pullbacks.
Hexcel delivered strong Q4 2025 results, with revenue increasing 3.69% YoY to $491.3 million, net income surging 700% YoY to $46.4 million, and EPS growing 757.14% YoY to $0.6. However, gross margin dropped slightly to 24.63%, down 1.52% YoY.
Analyst sentiment is largely positive, with multiple upgrades and raised price targets. RBC Capital, UBS, and Truist have price targets of $94-$99 with Buy ratings. BofA upgraded the stock to Neutral, citing improving widebody aircraft production. Morgan Stanley projects 27% annual earnings growth through 2028, significantly above peers.
