The Meggitt share price has doubled in 12 months. Here’s what I’m doing now

first_img Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Meggitt. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. See all posts by Jabran Khan Get the full details on this £5 stock now – while your report is free. The Meggitt share price has doubled in 12 months. Here’s what I’m doing nowcenter_img Both the past week and past 12 months have been interesting times for Meggitt (LSE:MGGT). The Meggitt share price has experienced some interesting growth in these time periods. Rumours of a takeover caused the spike in share price last week. Based on current levels and takeover rumours, is the Meggitt share price an opportunity right now?An aerospace firm that isn’t suffering too badlyMeggitt Group is one aerospace firm that isn’t faring too badly in the current economic climate. The impact of the Covid-19 pandemic on the aviation and aerospace industry has been well documented. The Meggitt share price, though, hasn’t fared badly, in my opinion.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Meggitt Group is an engineering firm that operates in three core divisions: civil aerospace, defence, and energy. Over 50% of Meggitt’s revenue comes from its aerospace division. The applications of its products include civil aircraft, helicopters, engines, and business jets. It says that its parts are fitted to “almost every jet airliner, regional aircraft, and business jet in service”. Defence generates over 30% of revenue with applications deriving from military aircraft, vehicle, naval, and space markets.Despite the well documented, difficult market conditions, Meggitt hasn’t suffered too much. It has been able to avoid running up high levels of debt. Furthermore, it has not had to raise capital by selling shares.Meggitt share price continues to rise since crashThe share price gain Meggitt experienced at the end of last week was closely linked to takeover rumours. A report emerged from the US that aerospace engineering group Woodward Inc may be considering a deal. Woodward is a £5.7bn market cap firm, compared to £3.6bn Meggitt. There hasn’t been any comment from Meggitt regarding this news though. Today has seen its share price dip nearly 4% as I write.The Meggitt share price has risen nearly 100% in the past 12 months. As I write, shares are trading for 482p per share. This time last year, I could buy shares for 245p per share. Covid-19 caused most shares to crash badly when the world’s airlines were shut.In February of 2020, Meggitt’s share price fell from over 600p per share to around 220p. That’s a 65% drop. Reviewing these figures and timeline, Meggitt’s shares are still cheaper than pre-crash levels at current levels.Buy or avoid?Meggitt has a good track record of performance with a history of double-digit profit levels and good cash generation. Furthermore, many of its products are essential to modern day aerospace vehicles. As I mentioned earlier, it has not been hit too badly by the market crash and pandemic.During the pandemic, I avoided buying airline and aviation stocks. Restrictions are now easing and pent-up demand may even assist in a quicker recovery. Aviation body IATA, however, believes flying levels will not return to 2019 levels until approximately 2024.I am still of the same view and would not want to risk my hard earned money just now. The Meggitt share price is trading on close to 20 times 2022 forecast earnings, which is a bit too expensive for my liking.I would rather look to make a passive income from FTSE 100 stocks. Here are some I like just now that could boost my portfolio. Image source: Getty Images. Jabran Khan | Monday, 10th May, 2021 | More on: MGGT Enter Your Email Address FREE REPORT: Why this £5 stock could be set to surge Simply click below to discover how you can take advantage of this.last_img read more