The factors in favour of a rise in the EADS share price:
If, like many other particular stock market investors, you want to take a long position on the course of EADS shares, you should of course decide which way you are going to trade. The possibility of a long-term uptrend or on the contrary, of a long-term bearish movement is based on the strengths or on the weaknesses of this American company and of its capacity to face the future. So, let’s start by listing EADS’ advantages and strong points which are leaning for a long term upward movement.
First of all, we can of course, underline the fact that the group EADS has a well thought strategy concerning its activities. The group carries out different activities in a variety of fields as we have just mentioned before, which allows it to diversify its sources of income. Thanks to this wide range of activities, the company is more protected against the risk associated with a single sector.
We can also mention as an undeniable strengths EADS’ innovation capacity. Research is in fact paramount to cope with the high competition in the technological sectors and EADS has already shown that it is takes this element seriously in the past. Each year, the American group consecrates a big part of its profits to investing in R&D, which enables it to develop more effective and innovating products and solutions and thus maintain its place among the leaders in the market.
EADS is already the holder of several patents concerning the latest advanced technologies. In addition, it has been able to seduce many customers around the world thanks to its ability to offer products and services that meet the needs of specific companies.
Always among EADS main strengths, we can mention the efforts that it has made concerning the external development of the company. EADS has adopted a strategy of multiple acquisitions in different fields of activities and in various countries. That was particularly the case with the reacquisition of some of its suppliers such as ND, SatCom, GmbH, and SES Astra. The acquisition of its suppliers obviously gives EADS a better control of its costs of production and it also guarantees the supply of products, services and raw materials necessary for its activities.
Of course, the ranking of EADS on the international market is another strength that should be mentioned. The American company is still the world’s leader in the sector of civil aviation, which allows it to have more weight among its customers and partners, but also to get numerous large scale and interesting contracts. It should also be noticed that the subsidiary Eurocopter, which belongs to EADS, is also an international leader in its sector of activity.