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Time to Buy Aerospace Defense Stocks for Higher Highs

Among the Zacks Rank #1 (Strong Buy) list, several Aerospace Defense stocks are standing out and have reached new 52-week highs this week.  

Benefiting from increased global military spending and growing demand for defense technology, these stocks are seeing a pleasant trend of rising earnings estimate revisions, pointing to more upside ahead.

 

The Zacks Aerospace-Defense Industry

Howmet Aerospace (HWM - Free Report)  and Safran (SAFRY - Free Report)  are the two standouts from the Zacks Aerospace-Defense Industry, which is in the top 16% of over 240 Zacks industries. Both provide critical components for aircraft engines, with Howmet and Safran stock sitting on year-to-date gains of +55% and +35% respectively, to outperform the industry’s return of +17%.

Headquartered in France, Safran is attracting investor interest as the company has seen a surge in aircraft orders amid geopolitical uncertainties in Europe. Meanwhile, Pittsburgh-based Howmet has continued its steady top and bottom-line growth thanks to international expansion with operations throughout North America and Europe, Australia, China, and Japan.         

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Zacks Aerospace-Defense Equipment Industry

Placing three stocks on the Zacks Rank #1 (Strong Buy) list, including Astronics (ATRO - Free Report) , Elbit Systems (ESLT - Free Report) , and Triumph Group (TGI - Free Report) , is the Zacks Aerospace-Defense Equipment Industry, currently in the top 17% of all Zacks industries.

Astronics, Elbit, and Triumph have noticeably outperformed their peers, with the Aerospace-Defense Equipment Industry having a return of +14% YTD. Astronics has led the way with gains of nearly +100% this year as a manufacturer of specialized lighting and electronics for the cockpit, cabin, and exteriors of military, commercial transport, and private business jet aircraft.

Furthermore, Elbit has a unique niche as a worldwide leader in Night Vision Goggles Head-Up Displays (NVG-HUD) for use in various types of helicopters, with Triumph producing a wide range of aircraft parts. 

Zacks Investment Research
Image Source: Zacks Investment Research

Notably, the Zacks Aerospace-Defense Equipment industry has a projected EPS growth rate of 18.54% in 2025, with Astronics and Elbit‘s projections being above this level, while Triumph’s annual earnings are expected to increase a respectable 14%.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Bottom Line

Most intriguing to the notion that these aerospace defense stocks could have more upside is that their EPS estimates have trended higher for fiscal 2025 and FY26. Even better, with their appealing growth expected to continue next year, it may still be an ideal time to buy.  

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