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AAR Corp. (AIR) Hits Fresh High: Is There Still Room to Run?
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Shares of AAR (AIR - Free Report) have been strong performers lately, with the stock up 18.8% over the past month. The stock hit a new 52-week high of $98.92 in the previous session. AAR has gained 18.7% since the start of the year compared to the 41.2% move for the Zacks Aerospace sector and the 49.6% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 6, 2026, AAR reported EPS of $1.18 versus consensus estimate of $1.02.
For the current fiscal year, AAR is expected to post earnings of $4.91 per share on $3.2 in revenues. This represents a 25.83% change in EPS on a 15.23% change in revenues. For the next fiscal year, the company is expected to earn $5.8 per share on $3.41 in revenues. This represents a year-over-year change of 17.99% and 6.51%, respectively.
Valuation Metrics
While AAR has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
AAR has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20X current fiscal year EPS estimates, which is not in-line with the peer industry average of 36.2X. On a trailing cash flow basis, the stock currently trades at 18X versus its peer group's average of 34.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, AAR currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if AAR meets the list of requirements. Thus, it seems as though AAR shares could have a bit more room to run in the near term.
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AAR Corp. (AIR) Hits Fresh High: Is There Still Room to Run?
Shares of AAR (AIR - Free Report) have been strong performers lately, with the stock up 18.8% over the past month. The stock hit a new 52-week high of $98.92 in the previous session. AAR has gained 18.7% since the start of the year compared to the 41.2% move for the Zacks Aerospace sector and the 49.6% return for the Zacks Aerospace - Defense Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 6, 2026, AAR reported EPS of $1.18 versus consensus estimate of $1.02.
For the current fiscal year, AAR is expected to post earnings of $4.91 per share on $3.2 in revenues. This represents a 25.83% change in EPS on a 15.23% change in revenues. For the next fiscal year, the company is expected to earn $5.8 per share on $3.41 in revenues. This represents a year-over-year change of 17.99% and 6.51%, respectively.
Valuation Metrics
While AAR has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
AAR has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20X current fiscal year EPS estimates, which is not in-line with the peer industry average of 36.2X. On a trailing cash flow basis, the stock currently trades at 18X versus its peer group's average of 34.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, AAR currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if AAR meets the list of requirements. Thus, it seems as though AAR shares could have a bit more room to run in the near term.