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The Zacks Analyst Blog Highlights: Raytheon Technologies, Triumph Group, Transdigm Group and The Boeing Company

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For Immediate Release

Chicago, IL – June 9, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Raytheon Technologies (RTX - Free Report) , Triumph Group (TGI - Free Report) , Transdigm Group (TDG - Free Report) and The Boeing Company (BA - Free Report) .

Here are highlights from Monday’s Analyst Blog:

4 Aerospace Stocks to Gain as U.S. Air Travel Increases

As in major countries across the world, a gradual rise in air travel has been observed in the United States over the past few weeks. While this came as a major boost for U.S. carriers, which were suffering due to the COVID-19 impact, Aerospace stocks that serve the commercial aftermarket also breathed a sigh of relief.  

Notably, in the first 14 days of May 2020, close to 2.5 million people passed through checkpoints at U.S. airports, according to the Transportation Security Administration data. This indicates a surge of 63% from the same period in April. No doubt this has raised hopes for a possible rebound in U.S. air travel.

Will Air Travel Grow Further?

With more states easing travel restrictions and a slow yet steady rise in air passengers, major U.S. airlines recently announced plans to increase the number of domestic flights, ahead of the peak summer season.

Notably, American Airlines said that it is planning to fly more than 55% of its July 2019 domestic flight schedule in July 2020, after average daily passenger numbers increased from about 32,000 in April to more than 110,000 in late May.

OAG, which tracks the airline industry and flight schedules, says that the four biggest U.S. carriers, American Airlines, United Airlines, Delta Airlines and Southwest Airlines are boosting their schedules in June by 27% from May. The majority of this increase is driven by additional domestic flights.

Surely these statistics indicate a rise in passenger air travel within the United States.

How Will Aerospace Stocks Benefit?

With increasing air travel, demand for aftermarket services are also  expected to improve modestly, leading to growth opportunities for aerospace stocks that serve the commercial aftermarket.

Notably, aftermarket services comprise a wide range of offerings, from spare parts, software maintenance to field operations, end-of-life services and many more. As more passengers start to travel, demand for repair and overhaul services are projected to increase. This in turn will boost sales for companies operating in the aviation aftermarket industry.

Stocks to Gain

Herein we have mentioned four Aerospace stocks that are involved in commercial aftermarket service. Their share prices have gained substantially over the past month, outperforming the broader market.

Raytheon Technologies’ business segment, Pratt & Whitney offers comprehensive engine repair and overhaul services and support. Its well-established network also provides a complete menu of related engine services. The company’s share price has risen a solid 26.7% over the past month, while the Zacks S&P 500 composite gained 8.7%.

Triumph Group offers a comprehensive suite of aftermarket support services for commercial aircraft. It provides integrated planeside repair solutions for airplane structures, components and accessories, fuel tanks, bladders and auxiliary power units. The company’s share price has surged a whopping 96.9% over the past month.

Transdigm Group generates approximately 55% of its revenues from aftermarket sales. In March 2019, the company acquired Esterline Technologies, which has significant aftermarket exposure.  The company’s share price has surged 40.7% over the past month.

The Boeing Company’s subsidiary, Aviall is a leading solutions provider of after-market supply chain and logistics services for the commercial aerospace industry. It offers more than 2 million parts, including extensive lines of aviation oils, tires, batteries, hardware and more. The company’s share price has rallied 59.4% over the past month.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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