CAE Stock Analysis: Buy, Sell, or Hold?
CAE - CAE INC
$25.51
0.28 (1.11%)
▲
5d:
+3.53%
30d:
+0.59%
90d:
-3.99%
BUY
HIGH Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Aug 11, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: CAE shows strong fundamentals and good volume confirmation. Solid entry point despite slightly high pricing.
✅ BUY SIGNAL: CAE shows strong fundamentals and good volume confirmation. Solid entry point despite slightly high pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$31.63
Based on 4.0% avg growth
INTRINSIC VALUE TODAY
$19.64
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 21.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CAE is currently trading at $25.51, which is considered slightly high relative to its 30-day fair value range of $24.80 to $25.65. The stock's valuation (Forward PE: 20.6) is in line with its historical norms (21.0). Remarkably, the market is currently pricing in an annual earnings decline of 0.7% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, CAE is in a strong downtrend. The price is approaching resistance at $25.97. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CAE has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $32.05 (+25.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CAE is in a strong downtrend. The price is approaching resistance at $25.97. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CAE has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $32.05 (+25.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$24.80 -
$25.65
Company Quality Score
64/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
76.2%
All Signals
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 25.6% below Wall St target ($32.05)
Trading Range Analysis
30-Day Trading Range
$24.80 -
$25.65
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$24.59
Resistance Level
$25.97
Current Trend
Strong Downtrend
Technical data as of
Jul 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
20.56
Wall Street Target
$32.05
(+25.6%)
Revenue Growth (YoY)
4.0%
Earnings Growth (YoY)
-48.2%
Profit Margin
6.4%
Valuation Discount vs History
-0.7% cheaper
PE vs Historical
20.6 vs 21.0
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.7%
(market-implied from PE analysis)
1-Year Target
$25.33
(-1%)
2-Year Target
$25.15
(-1%)
3-Year Target
$24.98
(-2%)
3-Yr Target (if PE normalizes)
(PE: 21→21)
$25.51
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 3.9%)
$30.34
(+19%)
Base:
(SPY PE: 20.6, Growth: 3.9%)
$28.64
(+12%)
Bear:
(PE: 17.5, Growth: 3.9%)
$24.35
(-5%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (37x PE), but valuation improves significantly next year (21x PE) as earnings recover.
Trailing PE: 37.10 | Current EPS (TTM): $0.68
Bull Case
$50.64
(+99%)
Analyst growth 82.5%, PE expands to 40.8
Base Case
$46.04
(+81%)
Market implied 82.5%, PE stable at 37.1
Bear Case
$17.16
(-33%)
Severe decline -20.0%, PE contracts to 31.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 20.6 to 21.0
Stabilization Target:
$26.06
(+2.1%)
PE Expansion Potential:
+2.1%
Share & Embed Analysis
Last updated: July 03, 2026 6:15 PM ET
Data refreshes hourly during market hours. Next update: 7:15 PM
Data refreshes hourly during market hours. Next update: 7:15 PM
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Technical Signals Check
Is CAE showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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