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Forget AI, Buy 5 High-Flying Old Economy Stocks for a Strong Portfolio
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Key Takeaways
Old economy stocks like HWM, NEM, SFM, GE, and CW are rising amid tech sector weakness and market uncertainty.
HWM, NEM, and SFM each show double-digit earnings growth and recent estimate upgrades driving investor appeal.
GE and CW are capitalizing on defense, aviation, and energy trends while enhancing shareholder returns.
The artificial intelligence (AI)-driven, astonishing bull run of 2023 and 2024 has suffered setbacks in 2025. The Fed’s ambiguity over further rate cuts this year, fears of a near-term recession and the availability of a low-cost Chinese AI platform have unnerved investors.
Moreover, severe concerns related to the Trump administration’s tariff and trade policies significantly dented market participants’ confidence in risky assets like equities. The technology sector has suffered the most since these stocks, especially the AI-focused ones, have skyrocketed in the last two years.
Meanwhile, a long list of old-economy stocks has popped in the past three months. Here, we recommend five such stocks with a favorable Zacks Rank that have strong potential in the second half of 2025.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Howmet Aerospace Inc.
Zacks Rank #1 Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets.
Robust orders for engine spares for the F-35 program, spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies.
Howmet Aerospace has an expected revenue and earnings growth rate of 8.5% and 28.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 30 days.
Newmont Corp.
Zacks Rank #1 Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio providing opportunities for significant synergies. NEM also remains focused on improving operational efficiency and returning value to its shareholders.
Newmont has received full funds approval for its Ahafo North project, which has reached the execution stage. Commercial production for the project is expected to commence in second-half 2025. NEM remains committed to Ghana, investing $950 million to $1,050 million in development capital for Ahafo North.
Newmont has an expected revenue and earnings growth rate of 2% and 20.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.7% over the last 30 days.
Sprouts Farmers Market Inc.
Zacks Rank #1 Sprouts Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller-format stores. These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both top and bottom lines grew year over year.
Buoyed by the performance, Sprouts Farmers provided a decent 2025 view. SFM expects net sales to rise between 10.5% and 12.5% with comps anticipated to increase in the range of 4.5-6.5%. SFM’s strong sales growth, margin expansion and disciplined financial management position it as a compelling investment opportunity.
Sprouts Farmers has an expected revenue and earnings growth rate of 13.7% and 35.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 30 days.
GE Aerospace
Zacks Rank #2 GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company.
GE’s portfolio-reshaping actions are likely to unlock values for its shareholders. GE raised its dividend by 28.6% to 36 cents per share in February 2025. For 2025, GE expects organic revenues to grow in the low-double-digit range from the year-ago level.
GE Aerospace has an expected revenue and earnings growth rate of -6.8% and 19.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
Curtiss-Wright Corp.
Zacks Rank #2 Curtiss-Wright has been benefiting from the global shift toward alternative energy, particularly in nuclear power. CW continues to play a key role in the construction of new nuclear power plants, driven by new AP1000 orders, with the potential to build 20-25 reactors in Central and Eastern Europe.
The clean energy transition, especially in developing nations with limited power infrastructure, is expected to drive long-term growth in commercial nuclear energy. Increasing submarine demand, along with growing commercial air traffic, is also benefiting CW. The company boasts a solid solvency position.
Curtiss-Wright has an expected revenue and earnings growth rate of 8.5% and 15.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days.
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Forget AI, Buy 5 High-Flying Old Economy Stocks for a Strong Portfolio
Key Takeaways
The artificial intelligence (AI)-driven, astonishing bull run of 2023 and 2024 has suffered setbacks in 2025. The Fed’s ambiguity over further rate cuts this year, fears of a near-term recession and the availability of a low-cost Chinese AI platform have unnerved investors.
Moreover, severe concerns related to the Trump administration’s tariff and trade policies significantly dented market participants’ confidence in risky assets like equities. The technology sector has suffered the most since these stocks, especially the AI-focused ones, have skyrocketed in the last two years.
Meanwhile, a long list of old-economy stocks has popped in the past three months. Here, we recommend five such stocks with a favorable Zacks Rank that have strong potential in the second half of 2025.
These companies are: Howmet Aerospace Inc. (HWM - Free Report) , Newmont Corp. (NEM - Free Report) , Sprouts Farmers Market Inc. (SFM - Free Report) , GE Aerospace (GE - Free Report) and Curtiss-Wright Corp. (CW - Free Report) . Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Howmet Aerospace Inc.
Zacks Rank #1 Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets.
Robust orders for engine spares for the F-35 program, spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies.
Howmet Aerospace has an expected revenue and earnings growth rate of 8.5% and 28.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 30 days.
Newmont Corp.
Zacks Rank #1 Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio providing opportunities for significant synergies. NEM also remains focused on improving operational efficiency and returning value to its shareholders.
Newmont has received full funds approval for its Ahafo North project, which has reached the execution stage. Commercial production for the project is expected to commence in second-half 2025. NEM remains committed to Ghana, investing $950 million to $1,050 million in development capital for Ahafo North.
Newmont has an expected revenue and earnings growth rate of 2% and 20.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.7% over the last 30 days.
Sprouts Farmers Market Inc.
Zacks Rank #1 Sprouts Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller-format stores. These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both top and bottom lines grew year over year.
Buoyed by the performance, Sprouts Farmers provided a decent 2025 view. SFM expects net sales to rise between 10.5% and 12.5% with comps anticipated to increase in the range of 4.5-6.5%. SFM’s strong sales growth, margin expansion and disciplined financial management position it as a compelling investment opportunity.
Sprouts Farmers has an expected revenue and earnings growth rate of 13.7% and 35.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 30 days.
GE Aerospace
Zacks Rank #2 GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company.
GE’s portfolio-reshaping actions are likely to unlock values for its shareholders. GE raised its dividend by 28.6% to 36 cents per share in February 2025. For 2025, GE expects organic revenues to grow in the low-double-digit range from the year-ago level.
GE Aerospace has an expected revenue and earnings growth rate of -6.8% and 19.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days.
Curtiss-Wright Corp.
Zacks Rank #2 Curtiss-Wright has been benefiting from the global shift toward alternative energy, particularly in nuclear power. CW continues to play a key role in the construction of new nuclear power plants, driven by new AP1000 orders, with the potential to build 20-25 reactors in Central and Eastern Europe.
The clean energy transition, especially in developing nations with limited power infrastructure, is expected to drive long-term growth in commercial nuclear energy. Increasing submarine demand, along with growing commercial air traffic, is also benefiting CW. The company boasts a solid solvency position.
Curtiss-Wright has an expected revenue and earnings growth rate of 8.5% and 15.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days.