Yahoo Finance The Zacks Analyst Blog Highlights Elbit, AerSale, AAR, HEICO and Curtiss-Wright
For Immediate Release
Chicago, IL – June 25, 2024 – 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: Elbit Systems Ltd. ESLT, AerSale Corp. ASLE, AAR Corp. AIR, HEICO Corp. HEI and Curtiss-Wright Corp. CW.
Here are highlights from Monday’s Analyst Blog:
Top 5 Aerospace Defense Equipment Stocks to Buy for 2nd-Half 2024
The aerospace defense equipment industry has maintained its northbound journey amid supply-chain woes. Nevertheless, improving defense budget funding from the U.S. administration and impressive year-over-year projections for global air passenger numbers are likely to boost this space in the second half of 2024.
The aerospace defense equipment industry comprises companies that primarily design and manufacture heavy-built products like commercial as well as military jets and helicopters, tankers and other combat vehicles, missiles, combatant ships as well as auxiliary ships, submarines, bombs, guns, space transportation vehicles, military satellites and a few more.
The industry stood its ground on the back of steady government support. Importantly, in March 2024, the fiscal 2025 defense budget request was submitted by President Joe Biden. This included a funding proposal of $849.8 billion for the U.S. Department of Defense, which reflected a 1% increase from the fiscal 2024 enacted funding amount.
Steadily improving global air traffic data in recent times has been boosting the near-term growth prospects of the industry. As stated in the latest report published by the IATA in June, total travelers are expected to reach 4.96 billion in 2024 — a record high. Total revenues are expected to reach $996 billion in 2024 — a record high, reflecting an improvement of 9.7% year over year.
The Zacks-defined Aerospace – Defense Equipment Industry is currently in the top 14% of the Zacks Industry Rank. In the past year, the industry has provided 28.1% returns, while its year-to-date return is 15.2%. Since it is ranked in the top half of Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.
Our Top Picks
We have narrowed our search to five aerospace defense equipment stocks that have strong growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks sports either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for defense, homeland security, and commercial aviation applications primarily in Israel, North America, the Asia-Pacific, Europe, Latin America, and internationally.
ESLT operates through five segments: Aerospace; C4I and Cyber, Intelligence, Surveillance, Target Acquisition and Reconnaissance and Electronic Warfare, Land, and Elbit Systems of America.
Zacks Rank #1 ESLT has an expected revenue and earnings growth rate of 7.3% and 11.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 17.7% over the last 30 days.
AerSale Corp. provides aftermarket commercial aircraft, engines, and parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul service providers worldwide. ASLE operates in two segments, Asset Management Solutions and Technical Operations (TechOps).
Zacks Rank #1 ASLE has an expected revenue and earnings growth rate of 13.2% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.4% over the last 60 days.
AAR Corp. provides various products & services to the aviation & defense industries worldwide. AIR’s principal customers are The Boeing Co. and Airbus. AIR has two business segments: Aviation Services and Expeditionary Services.
Zacks Rank #2 AAR has an expected revenue and earnings growth rate of 17.2% and 24.1%, respectively, for the current year (ending May 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last 60 days.
HEICO Corp. has witnessed improved demand for its commercial aerospace products and services in the last couple of quarters, buoyed by a recovery in commercial air travel. The expectation of continued recovery in domestic and international travel demand bodes well for HEI’s growth in the coming days.
HEI’s disciplined acquisition strategy has also been driving its overall performance. Wencor’s takeover has boosted HEI’s position in the aircraft aftermarket space. The stock has a strong solvency position in the short run.
Zacks Rank #2 HEICO has an expected revenue and earnings growth rate of 30.3% and 15.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last seven days.
Curtiss-Wright Corp. is a diversified multinational company that designs and overhauls precision components. CW provides highly engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies.
CW’s products & services are offered to the aerospace, defense, general industrial and power generation markets. CW has three business segments: Aerospace & Industrial, Defense Electronics, and Naval & Power.
Zacks Rank #2 Curtiss-Wright has an expected revenue and earnings growth rate of 6.3% and 9.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 60 days.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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AAR Corp. (AIR) : Free Stock Analysis Report
Elbit Systems Ltd. (ESLT) : Free Stock Analysis Report
Curtiss-Wright Corporation (CW) : Free Stock Analysis Report
Heico Corporation (HEI) : Free Stock Analysis Report
AerSale Corporation (ASLE) : Free Stock Analysis Report
