AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. It operates through Aviation Services and Expeditionary Services segments. The Aviation Services segment engages in lease and sale of new, overhauled and repaired engine, and airframe parts and components, as well as aircrafts; and offers customized flight hour component inventory and repair, warranty claim management, and outsourcing programs for engine and airframe parts and components. This segment also provides fleet management and operations of customer-owned aircraft for the U.S. Department of State; customized performance-based supply chain logistics programs, which includes material planning, sourcing, logistics, information and program management, airframe and maintenance planning, and component repair, and overhaul services for U.S. Department of Defense and foreign governments. Further, it offers airframe inspection, maintenance, repair and overhaul, painting services, line maintenance, modifications, structural repairs, avionics service and installation, exterior and interior refurbishment, and engineering services and support; and repair and overhaul components including landing gears, wheels, and brakes for commercial and military aircraft; and operates six airframe maintenance facilities and one landing gear overhaul facility. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

AAR Corp. демонстрирует смешанную фундаментальную картину. В то время как P/E и другие мультипликаторы явно указывают на переоцененность по сравнению с отраслью, показатели ROE и ROA значительно ниже медианных значений, что указывает на низкую эффективность использования капитала. С одной стороны, компания показывает довольно высокий уровень выручки и чистой прибыли, что может указывать на ее стабильное положение на рынке. Однако, высокая долговая нагрузка и низкие маржи прибыли представляют собой серьезные риски, особенно в условиях увеличения процентных ставок. Дивидендная доходность остается нулевой, что также может настораживать инвесторов. В то же время, стабильный рост выручки и чистой прибыли в последние годы может быть положительным сигналом, хотя и с учетом высоких мультипликаторов. Таким образом, AAR Corp. требует осторожного подхода к оценке, особенно в свете ее финансовых рисков и проблем с рентабельностью.

AAR Corp.

Key Points
Boeing's free cash flow swung from negative to positive in 2025.
The company has more than 6,100 commercial airplane orders in its backlog.
Boeing's partnership with the U.S. military is expanding in a newly released multi-year framework.
The Boeing Company (NYSE: BA) sought to close what was a tumultuous chapter in its history. From production halts to outright tragedies, Boeing is entering, hopefully, a much better era. Boeing has three tailwinds in particular that make its stock a buy in 2026.
A staggeringly large backlog, a new seven-year framework with the Department of Defense, and warming relations with China are all reasons why Boeing will rebound in 2026 and in the years ahead.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Boeing's ready for a smoother ride
Boeing's backlog has grown to an astronomical $682 billion. This includes more than 6,100 commercial airplane orders. A backlog of this size provides excellent long-term revenue visibility and demand that is unlikely to fizzle out anytime soon.
On April 1, Boeing announced its new initiative with the U.S. Department of Defense to triple production of PAC-3 missile seeker components. The deal is a positive sign that the company's relationship with the government is durable and likely to grow if defense spending continues to increase.
Lastly, Boeing is closing in on a massive 500 jet deal with China. If this sale closes, it would be one of the largest in company history. Chinese airlines have mostly purchased aircraft from Airbus (ETR: AIR) in recent years, but Boeing is working to regain international market share.
There was hope the deal would close after President Donald Trump met with China's President Xi in a meeting originally scheduled for the end of March, but it was postponed due to the ongoing conflict in Iran. The meeting was rescheduled for mid-May.
Boeing's financials are still in recovery mode but showing improvement. For the full year 2025, Boeing's revenue reached $89.5 billion, a 34% year-over-year increase. The manufacturer made 600 commercial deliveries, which was its highest total since 2018.
Free cash flow also impressively swung from negative to positive, going from a loss of $12 billion to $1.06 billion in 2025 as well. This steep recovery is expected to continue through 2026. This trajectory should help Boeing reduce its debt load and reward patient investors.
The stock is lifting higher
Boeing's stock has also increased by over 20% in the past 12 months on the company's financial turnaround. The analysts' consensus is optimistic. The average price target for Boeing is now $270. As of April 2, the stock is trading slightly above $200, suggesting plenty of room to run.
With a giant backlog, robust defense contracts, and potential to claw back market share from Airbus overseas, Boeing's runway is clear and ready for takeoff. It's a compelling recovery story for an American institution.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Tailwinds Making Boeing's Stock a Buy in 2026

Key Points
Senior VP and General Counsel Jessica Garascia sold 6,284 shares of Common Stock on March 26, 2026, for a transaction value of ~$705,000 at a weighted average price around $112.20 per share.
This transaction represented 17.53% of Jessica Garascia’s direct Common Stock holdings at the time of sale, reducing her direct position to 29,557 shares.
The activity was entirely direct and derivative in nature, reflecting an option exercise with immediate disposition of the underlying shares.
Jessica A. Garascia, Senior Vice President, General Counsel and Secretary of AAR Corp. (NYSE:AIR), reported the exercise and immediate sale of 6,284 shares of Common Stock for a transaction value of approximately $705,000, according to a SEC Form 4 filing.
Transaction summary
Shares sold (direct)
6,284
Transaction value
$705,000
Post-transaction shares (direct)
29,557
Post-transaction value (direct ownership)
~$3.28 million
Transaction value based on SEC Form 4 weighted average purchase price ($112.20); post-transaction value based on March 26, 2026 market close.
Key questions
What was the nature of this transaction, and what does the derivative context indicate?
The transaction involved the exercise of 6,284 stock options, with all shares immediately sold; this reflects a liquidity event rather than a discretionary open-market sale.
How did this sale impact Jessica Garascia’s direct Common Stock holdings and ownership percentage?
Her direct Common Stock holdings were reduced by 17.53%, from 35,841 shares pre-transaction to 29,557 shares post-transaction.
How does the scale of this sale compare to Garascia’s recent trading activity?
This sale exceeded the recent median sale size of 4,209 shares (drawn from four sales since July 2024), reflecting a step-up in sale proportion explained by the shrinking holdings base.
What is the remaining equity exposure for the insider, and does the transaction suggest any change in long-term alignment?
Garascia continues to hold 29,557 shares of Common Stock directly, maintaining active equity exposure; the transaction appears to be a routine option exercise for liquidity rather than a strategic shift in long-term ownership.
Company overview
Revenue (TTM)
$3.13 billion
Net income (TTM)
$171.00 million
Employees
5,700
1-year price change
101.14%
* 1-year price change is calculated using March 26, 2026 as the reference date.
Company snapshot
AAR Corp. provides aftermarket aviation services, including inventory management, parts distribution, maintenance, repair, and overhaul (MRO), as well as engineering solutions and expeditionary logistics support.
It generates revenue through service contracts, parts sales and leasing, and performance-based logistics programs for both commercial and defense customers.
The company serves a global client base comprising commercial airlines, cargo carriers, aircraft leasing companies, OEMs, and military/government agencies.
AAR Corp. operates at scale as a leading independent provider of aviation services, leveraging a diversified portfolio across commercial and defense end markets. The company’s strategy focuses on integrated supply chain solutions and MRO capabilities, positioning it as a key partner for airlines and government entities seeking operational efficiency and reliability.
Its competitive advantage lies in its broad service offering, global reach, and established relationships with both commercial and military customers.
What this transaction means for investors
General Counsel Jessica Garascia’s March 26 sale of AAR Corp. stock isn’t a cause for concern. Some of her stock options vested, and she chose to dispose of the shares. She still retained almost 30,000 shares after the transaction, suggesting she is not in a rush to sell her holdings.
Garascia’s sale comes on the heels of AAR stock reaching a 52-week high of $122.97 on March 25. The stock rose as the company reported excellent business performance for its fiscal third quarter ended Feb. 28.
AAR announced fiscal Q3 sales of $845.1 million, which represented a 25% year-over-year increase. Moreover, the company achieved a dramatic reversal from a net loss of $8.9 million in the previous year’s fiscal third quarter to net income of $68 million this year.
Thanks to its strong Q3 net income, AAR’s price-to-earnings ratio has dropped to a low point over the past year. This suggests its stock is at a compelling valuation to make picking up shares worthwhile. That said, because the stock is not far from its 52-week high, now isn’t a bad time to sell although shareholders may want to hold onto the stock given the company’s strong performance.
Should you buy stock in Aar right now?
Before you buy stock in Aar, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Aar wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is AAR Corp. Stock a Sell or Buy After a Senior VP Dumped Over 6,000 Shares Worth $705,000?

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AAR (AIR) Q3 2026 Earnings Call Transcript

(RTTNews) - AAR CORP. (AIR), Tuesday reported third-quarter net income of $68.0 million, or $1.71 per share, compared to a net loss of $8.9 million, or $0.25 per share.
The prior year quarter included a pre-tax charge of $63.7 million associated with the divestiture of the Company's Landing Gear Overhaul business. Adjusted earnings per share in the third quarter of fiscal year 2026 were $1.25, compared to $0.99 in the third quarter of the prior year.
Consolidated third-quarter sales increased 25% to $845.1 million, compared to $678.2 million in the same quarter last year.
Sales to commercial customers increased 27%, or $130 million, primarily due to double-digit organic growth across new parts Distribution within the Company's Parts Supply segment and the impact of the Company's acquisitions of HAECO Americas and ADI. Sales to government customers increased 19% over the same period last year, primarily due to increased order volume for new parts Distribution activities and the impact of ADI's sales to government customers.
Looking forward to the fourth quarter, the company expects sales growth of 19-21% and organic sales growth of 6-8%. For the full year 2026, the company expects sales growth of about 19% and organic sales growth of about 12%, compared to prior estimate of total sales growth of approaching 17% and organic sales growth of approaching 11%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AAR Swings To Profit In Q3

The following companies are expected to report earnings after hours on 03/24/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
AAR Corp. (AIR)is reporting for the quarter ending February 28, 2026. The aerospace and defense company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.21. This value represents a 22.22% increase compared to the same quarter last year. In the past year AIR has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 15.69%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AIR is 21.34 vs. an industry ratio of 46.70.
KB Home (KBH)is reporting for the quarter ending February 28, 2026. The building (residential/commercial) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.52. This value represents a 65.10% decrease compared to the same quarter last year. KBH missed the consensus earnings per share in the 1st calendar quarter of 2025 by -4.49%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for KBH is 12.94 vs. an industry ratio of 13.70.
Worthington Enterprises, Inc. (WOR)is reporting for the quarter ending February 28, 2026. The building company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.94. This value represents a 3.30% increase compared to the same quarter last year. The last two quarters WOR had negative earnings surprises; the latest report they missed by -9.72%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for WOR is 14.37 vs. an industry ratio of 15.50.
Braze, Inc. (BRZE)is reporting for the quarter ending January 31, 2026. The internet software company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.19. This value represents a 18.75% decrease compared to the same quarter last year. BRZE missed the consensus earnings per share in the 4th calendar quarter of 2025 by -7.41%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BRZE is -21.26 vs. an industry ratio of -36.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Integra Resources Corp. (ITRG)is reporting for the quarter ending December 31, 2025. The consensus earnings per share forecast from the 5 analysts that follow the stock is $0.06. ITRG reported earnings of $0.02 per share for the same quarter a year ago; representing a a increase of 200.00%.Absci Corporation (ABSI)is reporting for the quarter ending December 31, 2025. The biomedical (gene) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.16. This value represents a 36.00% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 18 days. Zacks Investment Research reports that the 2025 Price to Earnings ratio for ABSI is -3.62 vs. an industry ratio of -4.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Draganfly Inc. (DPRO)is reporting for the quarter ending December 31, 2025. The aerospace and defense company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.13. This value represents a 83.54% increase compared to the same quarter last year. DPRO missed the consensus earnings per share in the 4th calendar quarter of 2024 by -21.54%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for DPRO is -5.60 vs. an industry ratio of -52.90, implying that they will have a higher earnings growth than their competitors in the same industry.
MaxCyte, Inc. (MXCT)is reporting for the quarter ending December 31, 2025. The biomedical (gene) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.08. This value represents a 20.00% increase compared to the same quarter last year. The last two quarters MXCT had negative earnings surprises; the latest report they missed by -9.09%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for MXCT is -2.29 vs. an industry ratio of -4.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Fractyl Health, Inc. (GUTS)is reporting for the quarter ending December 31, 2025. The drug company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.19. This value represents a 63.46% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for GUTS is -0.46 vs. an industry ratio of -2.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Spectral AI, Inc. (MDAI)is reporting for the quarter ending December 31, 2025. The medical instruments company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.12. This value represents a 100.00% decrease compared to the same quarter last year. The last two quarters MDAI had negative earnings surprises; the latest report they missed by -44.44%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for MDAI is -3.91 vs. an industry ratio of -5.10, implying that they will have a higher earnings growth than their competitors in the same industry.
TELA Bio, Inc. (TELA)is reporting for the quarter ending December 31, 2025. The biomedical (gene) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.18. This value represents a 21.74% increase compared to the same quarter last year. The days to cover, as reported in the 2/27/2026 short interest update, increased 569.15% from previous report on 2/13/2026. Zacks Investment Research reports that the 2025 Price to Earnings ratio for TELA is -0.99 vs. an industry ratio of -4.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Intrusion Inc. (INTZ)is reporting for the quarter ending December 31, 2025. The computer networks company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.09. This value represents a 75.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for INTZ is -2.76 vs. an industry ratio of 11.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for March 24, 2026 : AIR, KBH, WOR, BRZE, ITRG, ABSI, DPRO, MXCT, GUTS, MDAI, TELA, INTZ

AAR Corp.’s AIR robust presence in the aerospace Maintenance, Repair and Overhaul (MRO) market, solid liquidity and low debt are strong upsides. Given its growth prospects, AIR makes for a solid investment option in the Aerospace sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History of AIR
The Zacks Consensus Estimate for fiscal 2026 earnings per share is pegged at $4.85, which indicates year-over-year growth of 24%.
The consensus estimate for fiscal 2026 sales is pegged at $3.20 billion, which indicates year-over-year growth of 15.2%.
It delivered an average earnings surprise of 11.26% in the last four quarters.
AAR’s Debt Position
Currently, the company’s total debt to capital is 37.90%, better than the industry’s average of 43.79%.
AIR’s times interest earned (TIE) ratio at the end of the second quarter of fiscal 2026 was 2.75. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
AIR’s Liquidity
AIR’s current ratio at the end of the fiscal second quarter was 2.85. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.
AIR’s Focus on the MRO Market
The commercial aerospace industry has been seeing a steady rise in aircraft usage, which has increased the need for aircraft maintenance. In the fiscal second quarter, the company’s Repair & Engineering segment recorded a sales improvement of 6.9%, backed by strong demand for its airframe MRO activities.
To strengthen its MRO capabilities, the company is expanding its airframe MRO facilities in Oklahoma City and Miami. Once operational next year, these expanded facilities are expected to increase AAR’s overall MRO capacity by 15% and contribute roughly $60 million to its annual sales.
AIR Stock’s Price Performance
Shares of AIR have gained 25.5% in the past three months compared with the industry’s 10.9% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are Woodward WWD, Astronics ATRO and TransDigm Group TDG. Woodward sports a Zacks Rank #1 (Strong Buy) at present, while TransDigm and Astronics carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Woodward delivered an average earnings surprise of 17.93% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $8.51 per share, which indicates year-over-year growth of 23.5%.
Astronics delivered an average earnings surprise of 31.72% in the last four quarters. The Zacks Consensus Estimate for ATRO’s 2026 earnings is pegged at $2.62 per share, which implies year-over-year growth of 30.4%.
TransDigm delivered an average earnings surprise of 2.32% in the last four quarters. The consensus estimate for TDG’s 2026 earnings stands at $39.46 per share, which suggests year-over-year growth of 5.7%.
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AAR Corp. (AIR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why You Should Add AIR Stock to Your Portfolio Right Now

AeroVironment (AVAV) came out with quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this maker of unmanned aircrafts would post earnings of $0.69 per share when it actually produced earnings of $0.78, delivering a surprise of 13.04%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
AeroVironment, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $90.09 million for the quarter ended January 2022, missing the Zacks Consensus Estimate by 18.01%. This compares to year-ago revenues of $78.78 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AeroVironment shares have added about 17.3% since the beginning of the year versus the S&P 500's decline of -8%.
What's Next for AeroVironment?
While AeroVironment has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AeroVironment: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.37 on $123.67 million in revenues for the coming quarter and $1.33 on $456.56 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the bottom 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AAR (AIR), has yet to report results for the quarter ended February 2022.
This airplane maintenance company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +81.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
AAR's revenues are expected to be $457.11 million, up 11.4% from the year-ago quarter.
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AeroVironment, Inc. (AVAV): Free Stock Analysis Report
AAR Corp. (AIR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AeroVironment (AVAV) Lags Q3 Earnings and Revenue Estimates

Shopify's Whiplash Day

For Immediate Release
Chicago, IL – January 20, 2026 – Today, Zacks Investment Ideas feature highlights Teledyne Technologies TDY, AAR AIR and Innovative Solutions and Support ISSC.
Best Defense Stocks to Buy for Geopolitical Uncertainty
After major global events, friends and colleagues often reach out asking what it all means for markets, what will happen next and how investors should respond. While I’m always willing to share a view, the most honest position is usually the simplest one: I don’t know. In highly complex systems like global politics and financial markets, precise predictions are rarely durable. More often, they become an exercise in false certainty that anchors investors to a specific outcome and limits flexibility when conditions inevitably change.
That dynamic was on display again over the weekend, when President Donald Trump threatened additional tariffs on several EU nations following escalating tensions tied to Greenland. The headlines triggered a wave of messages asking for my take. The truth is, it’s unclear how events will unfold or where negotiations ultimately land.
What is clear, however, is how to position a portfolio for uncertainty without needing to forecast specific outcomes. Investors don’t need to predict the next geopolitical turn to prepare for a more volatile and security-focused global backdrop.
I’ve written extensively about the role of gold, gold miners, and energy stocks in environments like this. Another area quietly showing persistent strength is defense and aerospace. As governments reassess security priorities and increase spending, the sector continues to attract capital, and several stocks stand out on both fundamental and technical grounds. Among them are Teledyne Technologies, AAR and Innovative Solutions and Support.
Teledyne Technologies: A Leading Aerospace Stock
Teledyne Technologies is one of the highest quality operators in the defense and aerospace space, with a business spanning advanced instrumentation, digital imaging, aerospace electronics, and defense systems. Its products are deeply embedded in mission-critical applications across defense, space, maritime, and industrial markets, giving the company a durable competitive position and highly recurring demand.
That quality has translated into exceptional long-term stock performance. Teledyne has compounded shareholder value steadily for decades through a combination of organic growth, disciplined acquisitions, and strong execution. It remains a clear industry leader with a reputation for reliability and technological depth.
From a fundamentals standpoint, Teledyne carries a Zacks Rank #2 (Buy). The stock trades at roughly 24.4x forward earnings, which represents a modest premium to the broader market. However, that valuation is supported by consistent execution, strong cash flows, and an earnings growth outlook of nearly 10% annually over the next 3–5 years. In an environment where capital is gravitating toward defense stalwarts with proven track records, Teledyne’s combination of momentum, institutional sponsorship, and business quality could continue to support higher prices.
AAR: Stock Pushes to All-Time High
AAR provides aviation services and logistics solutions to both commercial and defense customers, with growing exposure to military sustainment, supply chain management, and aircraft maintenance. As global defense activity increases, demand for these operational and support services has strengthened meaningfully.
The stock has started the year with impressive momentum, pushing to fresh record highs just last week. That price action is being reinforced by improving fundamentals. AAR currently holds a Zacks Rank #2 (Buy), supported by broad earnings estimate revisions. Most notably, current quarter earnings estimates have risen 11% over the past 30 days, signaling improving visibility and stronger-than-expected operating trends.
Valuation remains reasonable given the growth profile. Shares trade at approximately 21.7x forward earnings, while sales are expected to grow 15.2% this year and earnings are forecast to climb roughly 24%. With strong momentum, improving estimates, and increasing defense exposure, AAR stands out as a stock that appears to be re-rating higher.
Innovative Solutions and Support: Shares Breakout
Innovative Solutions and Support is a smaller, more specialized player in the defense and aerospace ecosystem, focused on avionics systems used in military and commercial aircraft. While less well known, the company operates in a niche that benefits directly from fleet upgrades, modernization programs, and rising defense budgets.
ISSC is setting up as a potential momentum standout. The stock carries a Zacks Rank #1 (Strong Buy), driven by a dramatic surge in earnings expectations. Current quarter earnings estimates have jumped 233% over the last 60 days, reflecting a sharp improvement in underlying business conditions.
From a technical perspective, shares have just broken out from a textbook momentum base, a pattern often associated with the early stages of sustained advances, particularly in small-cap stocks when fundamentals inflect. While ISSC carries higher volatility than larger defense names, the combination of explosive estimate revisions and improving price action suggests it could emerge as a leadership name within the smaller-cap defense universe.
Should Investors Buy shares in ISSC, TDY and AIR?
Periods of geopolitical uncertainty are going to reward preparation over prediction. Defense and aerospace stocks offer that preparation by aligning portfolios with enduring spending trends that are largely independent of headlines. Teledyne provides stability and quality exposure to the core of the defense ecosystem, AAR adds momentum and earnings acceleration, and ISSC offers huge upside potential as a small-cap name.
For investors looking to position for uncertainty rather than forecast it, these names represent compelling ways to gain targeted exposure to one of the market’s strongest and most resilient sectors.
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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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
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AAR Corp. (AIR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Investment Ideas feature highlights: Teledyne, AAR and Innovative Solutions and Support

After major global events, friends and colleagues often reach out asking what it all means for markets, what will happen next and how investors should respond. While I’m always willing to share a view, the most honest position is usually the simplest one: I don’t know. In highly complex systems like global politics and financial markets, precise predictions are rarely durable. More often, they become an exercise in false certainty that anchors investors to a specific outcome and limits flexibility when conditions inevitably change.
That dynamic was on display again over the weekend, when President Donald Trump threatened additional tariffs on several EU nations following escalating tensions tied to Greenland. The headlines triggered a wave of messages asking for my take. The truth is, it’s unclear how events will unfold or where negotiations ultimately land.
What is clear, however, is how to position a portfolio for uncertainty without needing to forecast specific outcomes. Investors don’t need to predict the next geopolitical turn to prepare for a more volatile and security-focused global backdrop.
I’ve written extensively about the role of gold, gold miners, and energy stocks in environments like this. Another area quietly showing persistent strength is defense and aerospace. As governments reassess security priorities and increase spending, the sector continues to attract capital, and several stocks stand out on both fundamental and technical grounds. Among them are Teledyne Technologies (TDY), AAR (AIR), and Innovative Solutions and Support (ISSC).
Image Source: Zacks Investment Research
Teledyne Technologies: A Leading Aerospace Stock
Teledyne Technologies is one of the highest quality operators in the defense and aerospace space, with a business spanning advanced instrumentation, digital imaging, aerospace electronics, and defense systems. Its products are deeply embedded in mission-critical applications across defense, space, maritime, and industrial markets, giving the company a durable competitive position and highly recurring demand.
That quality has translated into exceptional long-term stock performance. Teledyne has compounded shareholder value steadily for decades through a combination of organic growth, disciplined acquisitions, and strong execution. It remains a clear industry leader with a reputation for reliability and technological depth.
From a fundamentals standpoint, Teledyne carries a Zacks Rank #2 (Buy). The stock trades at roughly 24.4x forward earnings, which represents a modest premium to the broader market. However, that valuation is supported by consistent execution, strong cash flows, and an earnings growth outlook of nearly 10% annually over the next 3–5 years. In an environment where capital is gravitating toward defense stalwarts with proven track records, Teledyne’s combination of momentum, institutional sponsorship, and business quality could continue to support higher prices.
Image Source: Zacks Investment Research
AAR: Stock Pushes to All-Time High
AAR provides aviation services and logistics solutions to both commercial and defense customers, with growing exposure to military sustainment, supply chain management, and aircraft maintenance. As global defense activity increases, demand for these operational and support services has strengthened meaningfully.
The stock has started the year with impressive momentum, pushing to fresh record highs just last week. That price action is being reinforced by improving fundamentals. AAR currently holds a Zacks Rank #2 (Buy), supported by broad earnings estimate revisions. Most notably, current quarter earnings estimates have risen 11% over the past 30 days, signaling improving visibility and stronger-than-expected operating trends.
Valuation remains reasonable given the growth profile. Shares trade at approximately 21.7x forward earnings, while sales are expected to grow 15.2% this year and earnings are forecast to climb roughly 24%. With strong momentum, improving estimates, and increasing defense exposure, AAR stands out as a stock that appears to be re-rating higher.
Image Source: Zacks Investment Research
Innovative Solutions and Support: Shares Breakout
Innovative Solutions and Support is a smaller, more specialized player in the defense and aerospace ecosystem, focused on avionics systems used in military and commercial aircraft. While less well known, the company operates in a niche that benefits directly from fleet upgrades, modernization programs, and rising defense budgets.
ISSC is setting up as a potential momentum standout. The stock carries a Zacks Rank #1 (Strong Buy), driven by a dramatic surge in earnings expectations. Current quarter earnings estimates have jumped 233% over the last 60 days, reflecting a sharp improvement in underlying business conditions.
From a technical perspective, shares have just broken out from a textbook momentum base, a pattern often associated with the early stages of sustained advances, particularly in small-cap stocks when fundamentals inflect. While ISSC carries higher volatility than larger defense names, the combination of explosive estimate revisions and improving price action suggests it could emerge as a leadership name within the smaller-cap defense universe.
Image Source: TradingView
Should Investors Buy shares in ISSC, TDY and AIR?
Periods of geopolitical uncertainty are going to reward preparation over prediction. Defense and aerospace stocks offer that preparation by aligning portfolios with enduring spending trends that are largely independent of headlines. Teledyne provides stability and quality exposure to the core of the defense ecosystem, AAR adds momentum and earnings acceleration, and ISSC offers huge upside potential as a small-cap name.
For investors looking to position for uncertainty rather than forecast it, these names represent compelling ways to gain targeted exposure to one of the market’s strongest and most resilient sectors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	25.87 24.86
Price/Sales	1.40 1.43
P/B	2.54 2.52
P/FCF	0.00 19.52

Indicator	TTM Median
ROE	12.07 15.56
ROA	5.54 6.32
ROI	7.20 9.37
Net Worth	4.63 1.47
Quick Ratio	1.23 1.16
Current Ratio	2.70 1.59

Indicator	TTM Median
Net Profit Margin	3.17 7.34
Operating Margin	9.30 10.10
Gross Margin	19.31 32.41
Return on tangible equity	18.03 26.34

Indicator	TTM Median
EPS	1.25 0.62
EPS Forecast	1.21 0.59
Revenue	845.00M 194.00M
Gross Profit	155.00M —
EBITDA	85.00M —

AAR Corp.

Recent quarterly and TTM performance

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