Should You Hold Park Aerospace Corp. (PKE)?

3 days ago 4

Soumya Eswaran

Thu, November 27, 2025 astatine 8:18 AM CST 4 min read

Prosper Stars & Stripes, a long/short equity fund, precocious released its third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the 3rd 4th of 2025, Prosper Stars & Stripes achieved a nett instrumentality of +9.8%. In comparison, its long/short equity hedge money adjacent group, arsenic indicated by the HFRX Equity Hedge (Total) Index (the “HFRX”), reported a full instrumentality of +3.8%. Additionally, the long-only small-cap Russell 2000 Index (the “Russell”) had a full instrumentality of +12.4%. Year to date, the money returned +8.6% compared to a full instrumentality of +13.6% for the HFRI and +10.4% for the Russell. The Composite’s agelong publication delivered beardown show successful some the 3rd 4th and year-to-date 2025. The abbreviated publication detracted from show some successful the 3rd 4th and year-to-date successful 2025. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Prosper Stars & Stripes highlighted stocks specified arsenic Park Aerospace Corp. (NYSE:PKE). Headquartered successful Westbury, New York, Park Aerospace Corp. (NYSE:PKE) is an aerospace company. The one-month instrumentality of Park Aerospace Corp. (NYSE:PKE) was 2.78%, and its shares gained 28.52% of their worth implicit the past 52 weeks. On November 26, 2025, Park Aerospace Corp. (NYSE:PKE) banal closed astatine $19.60 per share, with a marketplace capitalization of $390.154 million.

Prosper Stars & Stripes stated the pursuing regarding Park Aerospace Corp. (NYSE:PKE) successful its 3rd 4th 2025 capitalist letter:

"Park Aerospace Corp. (NYSE:PKE) was the second-best contributor successful the agelong publication during the 3rd 4th of 2025. Park develops and manufactures hot-melt precocious composite materials utilized to nutrient composite structures for the aerospace and defence industries. The company’s operations are anchored by a long-term, sole sourced statement to nutrient composite materials for motor nacelles and thrust reverses connected the LEAP-1A engine. An motor nacelle houses the motor and provides structural, thermal, and acoustic qualities. The LEAP-1A powers astir 60-70% of each A320 household of aircraft. Airbus wants to ramp up by gathering 78 planes per period compared to the existent 50 per period mean successful 2024. Park besides has breathtaking opportunities with Kratos for its Valkyrie loyal wingman program. Park besides has a increasing presumption successful the aerospace and defence industries that historically has produced EBITDA margins northbound of 20%. Recently, the institution announced a worldly concern for caller capableness for expanded accumulation of ablative compositive components, i.e. coagulated rocket centrifugal nozzles and vigor shields for the Patriot (“PAC-3”) rocket systems. The US is down to 25% of their desired levels of supply5 adding to unit to rapidly summation production. Park absorption confirmed this constituent connected their past net telephone saying the US Army is looking to summation procurement by 4x. The company’s subject income represented 42% of FY25 income and we expect this fig to summation implicit the adjacent fewer years. We valued PKE astatine 25x FY26 EBITDA which volition thrust the banal into the mid to precocious $20s implicit the adjacent 12 months."