We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Aerospace sector is currently ranked third out of 16 Zacks sectors as the growth narrative is vastly improving for many of these stocks.
Among the sector, the Zacks Aerospace-Defense Equipment Industry stands out hosting a number of highly ranked stocks and currently in the top 24% of over 250 Zacks industries. Here are several of these top aerospace stocks to consider right now.
AAR (AIR - Free Report) : Standing out in terms of value and momentum after impressively surpassing its quarterly top and bottom line expectations last Friday is Illinois-based AAR Corporation.
As a global provider of products and services to the aviation and defense industries AAR’s primary customers are Boeing (BA - Free Report) and Airbus Group (EADSY - Free Report) . Last week, AAR’s fiscal first-quarter earnings of $0.78 a share beat expectations by 7% with sales of $549.70 million topping estimates by 8%.
Image Source: Zacks Investment Research
Furthermore, Q1 earnings climbed 28% year over year with sales soaring 23% from the prior year quarter. AAR’s stock is up +31% YTD with the company expecting high double-digit percentage growth on its top and bottom lines in its current fiscal 2024 while trading reasonably at 16.9X forward earnings.
Image Source: Zacks Investment Research
Bae Systems (BAESY - Free Report) : London-based Bae Systems is also an attractive option among the Zacks Aerospace sector with its operations including the development, support, and delivery of advanced defense and aerospace systems.
Bae Systems stock is starting to check boxes in terms of value and growth with earnings now projected to jump 16% in FY23 and rise another 12% in FY24 to $3.56 per share. Considering Bae Systems' expansive bottom-line its stock trades very attractively at a 15.7X forward earnings multiple which is a steep discount to the industry average of 30.6X and nicely beneath the S&P 500’s 19.6X.
Image Source: Zacks Investment Research
Plus, Bae Systems stock is up a respectable +16% this year with annual earnings estimates nicely up over the last 60 days offering a further catalyst for more short-term upside and supportive of its attractive P/E valuation.
Top-line expansion is also intriguing as Bae Systems' FY23 sales are anticipated at $30.87 billion versus $26.30 billion last year. Even better, FY24 sales are forecasted to climb another 10%.
Image Source: Zacks Investment Research
Transdigm Group (TDG - Free Report) : Rounding out the list is Transdigm Group, a global leader in highly engineered aerospace components based in Ohio.
Transdigm’s aerospace components are used in commercial and military aircraft with the company’s growth trajectory very expansive. Transdigm’s stock has soared +33% in 2023 as earnings are projected to climb 47% this year at $25.30 per share compared to EPS of $17.14 a share in 2022.
Better still, Transdigm’s bottom line is expected to expand another 21% in FY24 to $30.75 per share. The stellar EPS growth makes Transdigm’s 26.4X forward earrings multiple look reasonable.
Image Source: Zacks Investment Research
On the top line, FY23 sales projections of $6.58 billion would be a 21% increase from last year with fiscal 2024 sales expected to rise another 11%. Fiscal 2024 projections of $7.33 billion in sales would also represent 44% growth over the last five years with 2020 sales at $5.10 billion.
Image Source: Zacks Investment Research
Bottom Line
The growth and outlook for these aerospace stocks is very enticing to investors amid recent stock market volatility as inflationary concerns still dwell. More reassuring is that AAR, Bae Systems, and Transdigm stock are trading at reasonable valuations which further boasts their strengthening prospects.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Time to Buy These Highly Ranked Aerospace Stocks
The Zacks Aerospace sector is currently ranked third out of 16 Zacks sectors as the growth narrative is vastly improving for many of these stocks.
Among the sector, the Zacks Aerospace-Defense Equipment Industry stands out hosting a number of highly ranked stocks and currently in the top 24% of over 250 Zacks industries. Here are several of these top aerospace stocks to consider right now.
AAR (AIR - Free Report) : Standing out in terms of value and momentum after impressively surpassing its quarterly top and bottom line expectations last Friday is Illinois-based AAR Corporation.
As a global provider of products and services to the aviation and defense industries AAR’s primary customers are Boeing (BA - Free Report) and Airbus Group (EADSY - Free Report) . Last week, AAR’s fiscal first-quarter earnings of $0.78 a share beat expectations by 7% with sales of $549.70 million topping estimates by 8%.
Image Source: Zacks Investment Research
Furthermore, Q1 earnings climbed 28% year over year with sales soaring 23% from the prior year quarter. AAR’s stock is up +31% YTD with the company expecting high double-digit percentage growth on its top and bottom lines in its current fiscal 2024 while trading reasonably at 16.9X forward earnings.
Image Source: Zacks Investment Research
Bae Systems (BAESY - Free Report) : London-based Bae Systems is also an attractive option among the Zacks Aerospace sector with its operations including the development, support, and delivery of advanced defense and aerospace systems.
Bae Systems stock is starting to check boxes in terms of value and growth with earnings now projected to jump 16% in FY23 and rise another 12% in FY24 to $3.56 per share. Considering Bae Systems' expansive bottom-line its stock trades very attractively at a 15.7X forward earnings multiple which is a steep discount to the industry average of 30.6X and nicely beneath the S&P 500’s 19.6X.
Image Source: Zacks Investment Research
Plus, Bae Systems stock is up a respectable +16% this year with annual earnings estimates nicely up over the last 60 days offering a further catalyst for more short-term upside and supportive of its attractive P/E valuation.
Top-line expansion is also intriguing as Bae Systems' FY23 sales are anticipated at $30.87 billion versus $26.30 billion last year. Even better, FY24 sales are forecasted to climb another 10%.
Image Source: Zacks Investment Research
Transdigm Group (TDG - Free Report) : Rounding out the list is Transdigm Group, a global leader in highly engineered aerospace components based in Ohio.
Transdigm’s aerospace components are used in commercial and military aircraft with the company’s growth trajectory very expansive. Transdigm’s stock has soared +33% in 2023 as earnings are projected to climb 47% this year at $25.30 per share compared to EPS of $17.14 a share in 2022.
Better still, Transdigm’s bottom line is expected to expand another 21% in FY24 to $30.75 per share. The stellar EPS growth makes Transdigm’s 26.4X forward earrings multiple look reasonable.
Image Source: Zacks Investment Research
On the top line, FY23 sales projections of $6.58 billion would be a 21% increase from last year with fiscal 2024 sales expected to rise another 11%. Fiscal 2024 projections of $7.33 billion in sales would also represent 44% growth over the last five years with 2020 sales at $5.10 billion.
Image Source: Zacks Investment Research
Bottom Line
The growth and outlook for these aerospace stocks is very enticing to investors amid recent stock market volatility as inflationary concerns still dwell. More reassuring is that AAR, Bae Systems, and Transdigm stock are trading at reasonable valuations which further boasts their strengthening prospects.