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AerSale Gains 12% YTD: Should Buy, Hold or Sell the Stock Now?

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AerSale Corporation’s (ASLE - Free Report) shares have surged a solid 12.1% year to date, outperforming the Zacks Aerospace-Defense Equipment industry’s rise of 0.5% as well as the broader Zacks Aerospace sector’s gain of 4.9%. It also came above the S&P 500’s decline of 6.3% in the same time frame.

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Shares of other industry players like Astronics (ATRO - Free Report) and Leonardo DRS (DRS - Free Report) have delivered similar stellar performances in the same period. Shares of ATRO and DRS have surged 41.9% and 15%, respectively, year to date.

With the global aircraft fleet expanding and maintenance needs intensifying, aerospace services stocks like ASLE have been gaining momentum lately, as evident from their performance at the bourses.

This might encourage investors to add ASLE to their portfolio right away. However, before making any hasty decision, let’s delve into what has been bolstering the company’s share price performance, whether there is more room for growth in the near future, and the risks (if any) to investing in it.

What’s Been Pushing Up ASLE Stock?

ASLE boasts a proven track record of successfully expanding its capabilities through meaningful acquisitions.

Evidently, in 2024, the company enhanced its MRO capabilities by opening a new facility in Millington, TN, and enhanced its Miami operations, including tripling the size of its aerostructures shop. These expansions are expected to contribute significantly to its future revenues.

More recently, in January 2025, AerSale announced the acquisition of a parts portfolio from the Sanad Group. The portfolio includes high-demand components for widely operated aircraft models, such as the 737NG, A320 Family, A330/340, Boeing 777, Embraer E-Jet and various Quick Engine Change kits. This strategic transaction will help AerSale in serving a diverse and growing global customer base by expanding its inventory breadth with top-quality parts for widely operated aircraft.

The company also brings in innovative products to the market to boost its organic growth. ASLE’s latest issued product is AerAware, which is a next-generation Enhanced Flight Vision System (“EFVS”) that enables a pilot to “see” through low visibility conditions by presenting advanced imaging technology along with real-time aircraft primary flight systems data on an Elbit Systems/Universal Avionics SkyLens Head Wearable Display. This achievement marks the world’s first commercial EFVS system to achieve a 50% visual advantage and the first large transport aircraft to be certified with a complete dual-pilot EFVS solution featuring a Head-Wearable Display.

Such strategic investment and innovation game plans are likely to have boosted investors’ confidence in this stock lately, as evident from its solid price performance over the past year.

Can ASLE Stock Keep Its Winning Streak Alive?

The company’s cash and cash equivalents as of Dec. 31, 2024, totaled $12 million. Its current debt as of the same date was $1 million, while long-term debt totaled $4 million. A comparative analysis of these figures reflects that Aersale boasts a strong solvency position, which, in turn, should enable the company to fund new products like its innovative AerAware Enhanced Flight Vision, along with awarding its investors with hefty returns through programs like share repurchase, just like it did recently.

Evidently, in March 2025, the company signed an agreement to repurchase approximately 6.428 million shares from its long-term private equity sponsor Leonard Green & Partners, L.P.

Looking ahead, we may expect ASLE’s operational results to continue to reflect solid financials buoyed by an impressive global air travel outlook for the next few years. The improving air travel outlook should also boost industry peers, Astronics and Leonardo DRS. While Astronics serves global aerospace providers with innovative technologies and services, Leonardo DRS supplies power systems and electro-optical/infrared systems for a wide range of commercial aerospace customers.

A quick sneak peek at ASLE’s near-term earnings and sales estimates reflects the same. 

ASLE’s Upbeat Estimates

The Zacks Consensus Estimate for 2025 sales suggests year-over-year growth of 6.8%, while that for 2026 sales indicates an improvement of 21.5%.

The 2025 and 2026 bottom-line estimates show a similar improving trend. Moreover, the upward revision in its near-term earnings estimate indicates that investors are gaining confidence in this stock’s earnings capabilities.

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Image Source: Zacks Investment Research

Zacks Investment Research
Image Source: Zacks Investment Research

ASLE Stock Trading at a Discount

In terms of valuation, ASLE’s forward 12-month price-to-earnings (P/E) is 9.38X, a discount to its peer group’s average of 33.90X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared to that of its peer group.

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Image Source: Zacks Investment Research

Risks to Consider Before Choosing ASLE

While AerSale presents strong growth opportunities, it faces several investment risks. A key concern is its reliance on feedstock availability for Used Serviceable Material (“USM”) sales. Tight supply conditions for end-of-life aircraft and engines could constrain AerSale’s ability to scale its USM business, thereby affecting its revenues and margins. Moreover, while innovations like AerAware offer competitive advantages, commercial adoption rates could be slower than anticipated, limiting expected revenue gains. 

Should You Buy ASLE Stock Now?

To conclude, investors interested in ASLE may add this stock to their portfolio, considering its discounted valuation, upbeat near-term sales estimates, impressive share price performance and upward revision in earnings estimates.

The company’s Zacks Rank #1 (Strong Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank stocks here.
 


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