#7 - AAR Corp. (NYSE:AIR)
AAR Corp. (NYSE: AIR) is a small-cap stock packing a nice punch for investors. The company is headquartered in Illinois and provides parts such as engine and airframe parts to companies in the defense sector.
Like many companies that relied on the aviation sector, AAR saw its revenue and earnings drop at the onset of the Covid-19 pandemic. But what’s behind them and the company is posting year-over-year increases in earnings per share. And that strong earnings growth is projected to continue at over 20% for the next five years.
Not surprisingly, AIR stock has made up all of its losses at the start of the pandemic Analysts tracked by MarketBeat give the stock a consensus price target of $54.50, which is a 10% increase from its current price. And on January 9, 2023, Truist Financial affirmed its buy rating on the stock while boosting its price target from $52 to $57.
About AAR
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes.
Read More - Current Price
- $69.60
- Consensus Rating
- Buy
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $81.00 (16.4% Upside)
Institutional investors are legendary for saying one thing and doing another. One way for savvy investors to get a sense of what institutions are buying is to look at the holdings in sector ETFs. In the case of defense stocks, one of the most popular is the iShares U.S. Aerospace & Defense ETF (BATS:ITA).
The fact sheet for this ETF, and other ETFs like it, list the top holdings for the ETF. This gives you an idea of the stocks that they believe will be among the best performing in the sector. And several stocks on this list are among the largest holdings of the ITA ETF.
But investing is also about diversification. That's why this list includes several stocks that may not be on the radar of the institutions now. And that makes it a good time to accumulate some shares at a lower price.
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