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.

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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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 (AVAV) Lags Q3 Earnings and Revenue Estimates

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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.
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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.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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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.

Best Defense Stocks to Buy for Geopolitical Uncertainty

TransDigm Group, Inc. TDG recently revealed that it has inked an agreement to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings, portfolio companies of Vance Street Capital, for nearly $2.2 billion in cash, including certain tax benefits.
How Will the Buyout Benefit TransDigm Stock?
Jet Parts Engineering’s proprietary original equipment manufacturer-alternative components and Victor Sierra Aviation’s highly engineered parts manufacturer approval (PMA) and aftermarket parts are expected to help TransDigm expand its portfolio and deepen its presence across the commercial aviation ecosystem. Their highly engineered, proprietary offerings support a wide range of commercial, regional, cargo, business and general aviation platforms, reinforcing TransDigm’s position as a key supplier of mission-critical aftermarket solutions that offer performance, reliability and cost advantages.
The acquisition aligns well with TransDigm’s long-term strategy of acquiring proprietary aerospace businesses with strong aftermarket exposure. Nearly all of the companies’ revenues come from the commercial aftermarket. The acquisition is likely to enhance TransDigm’s revenue base, strengthen cash flow generation and support its margin profile while broadening exposure across major aviation end markets.
With aging aircraft fleets and rising maintenance, repair and overhaul (MRO) activity sustaining demand for cost-efficient aftermarket components, original equipment manufacturer-alternative and PMA products remain in high demand. This will support long-term revenue growth by offering airlines, operators and MRO providers specialized, high-value aftermarket solutions that lower ownership costs and improve operational efficiency, benefiting TransDigm stock.
Acquisition Spree Among Aerospace Defense Players
The aerospace and defense sector has seen a surge in merger and acquisition activity in recent times, fueled by a greater emphasis on cost optimization and the need to diversify product portfolios amid intensifying competition. Such deals are increasingly vital for strategic growth, allowing companies to scale operations, gain specialized capabilities, advance technologies, and deliver higher-value products and services to strengthen their competitive positioning and expand market share.
TransDigm has also been engaged in a valuable acquisition, like the latest one. In December 2025, the company inked an agreement to acquire Stellant Systems, Inc., a portfolio company of Arlington Capital Partners, for nearly $960 million.
Other aerospace defense companies that have recently indulged in valuable acquisition deals are as follows:
On Jan. 14, 2026, Teledyne Technologies, Inc. TDY stated that it has acquired DD-Scientific Holdings Limited and its subsidiary DD-Scientific Limited. The buyout fits well with Teledyne’s long-term strategy of adding differentiated sensing and electronics businesses with strong technology content.
TDY has a long-term (three to five years) earnings growth rate of 9.85%. The Zacks Consensus Estimate for 2026 sales stands at $6.34 billion, which indicates a rise of 4.5%.
In December 2025, HEICO Corporation’s HEI Flight Support Group subsidiary, Wencor Group, LLC, signed an agreement to acquire EthosEnergy Accessories and Components Limited and EthosEnergy Accessories and Components, LLC.
HEI has a long-term earnings growth rate of 16.50%. The Zacks Consensus Estimate for fiscal 2026 sales is pegged at $4.96 billion, which suggests an increase of 10.6%.
In December 2025, AAR Corp. AIR secured a deal to acquire Aircraft Reconfig Technologies from ZIM Aircraft Cabin Solutions for $35 million. The acquisition is expected to expand AAR’s engineering and certification capabilities in its Repair & Engineering segment.
The Zacks Consensus Estimate for fiscal 2026 earnings per share is pegged at $4.85, which calls for a jump of 24%. The Zacks Consensus Estimate for fiscal 2026 sales stands at $3.20 billion, which indicates a rise of 15.2%.
TDG Stock Price Movement
In the past three months, shares of TransDigm have gained 11.4% compared with the industry’s 18.2% growth.
Image Source: Zacks Investment Research
TransDigm’s Zacks Rank
TDG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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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.

TDG to Buy Jet Parts Engineering and Victor Sierra Aviation for $2.2B

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 #1 (Strong 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 $4.92, which indicates year-over-year growth of 25.8%.
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 Stock’s Debt Position
Currently, the company’s total debt to capital is 37.90%, better than the industry’s average of 43.68%.
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 18% in the past three months compared with the industry’s 15.1% 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 Teledyne Technologies TDY. Woodward sports a Zacks Rank #1 at present, while Astronics and Teledyne each carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Woodward delivered an average earnings surprise of 14.66% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $7.82 per share, which indicates year-over-year growth of 13.5%.
Astronics delivered an average earnings surprise of 59.10% in the last four quarters. The Zacks Consensus Estimate for ATRO’s 2026 earnings is pegged at $2.47 per share, which implies year-over-year growth of 35%.
Teledyne Technologies delivered an average earnings surprise of 2.75% in the last four quarters. The consensus estimate for TDY’s 2025 earnings stands at $23.85 per share, which suggests year-over-year growth of 10.8%.
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AAR Corp. (AIR) : Free Stock Analysis Report
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Amphenol (APH) designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.Amphenol benefits from a diversified business model that lowers the volatility of individual end markets and geographies. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, APH’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and IT Datacom. Strong demand for high-speed and power interconnect products, which are critical components in next-gen IT systems, creates long term growth opportunity. APH expects fourth-quarter 2025 earnings to grow between 62% and 65% year over year. Revenues are anticipated to grow in the 39-41% range. Amphenol generates solid cash flow, which allows management the opportunity to invest in product innovations, acquisitions and business development. Recently, APH broke out above the 50-day moving average, suggesting a short-term bullish trend.
AAR Corp. (AIR) provides various products and services to the aviation and defense industries worldwide.AAR Corp. company continues to witness strong performance in its parts supply business, backed by growing commercial air travel and intensifying geopolitical tensions. Rising demand for aircraft maintenance, with MRO spending at record highs, has been boosting the company’s Repair & Engineering business segment. To further enhance its MRO capabilities, the company is currently involved in the airframe MRO facility expansions at its Oklahoma City and Miami MRO hangars. Its shares have outperformed the industry in the past six months.The company could be a top pick for growth investors. AIR has a Growth Style Score of A, forecasting year-over-year earnings growth of 25.8% for the current fiscal year. Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026. Shares of AARhave been strong performers lately, with the stock up 18.8% over the past month. The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters.
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Amphenol Corporation (APH) : Free Stock Analysis Report
AAR Corp. (AIR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Picks for Week of January 12, 2026

Key Points
A senior vice president of AAR Corp. sold 23,621 shares directly on Monday for about $2.29 million.
The transaction represented 26.42% of Jessup's direct holdings, as reported, reducing his direct ownership to 65,768 shares.
This sale followed the exercise of 14,652 options and involved no indirect holdings or transfers to related entities.
On Friday, Christopher Jessup, a senior vice president of AAR Corp. (NYSE:AIR), executed a direct sale of 23,621 shares othrough open-market transactions following an option exercise, as disclosed in a recent SEC Form 4 filing.
Transaction summary
Shares sold (direct)
23,621
Transaction value
$2.3 million
Post-transaction shares (direct)
65,768
Post-transaction value (direct ownership)
$6.4 million
Transaction value based on SEC Form 4 weighted average purchase price ($97.05); post-transaction value based on Friday market close ($97.03).
Key questions
What was the context for the share sale and how does the derivative component affect interpretation?
The sale was paired with the exercise of 14,652 options for common stock, with all shares sold directly; this structure signals the primary intent was liquidity from option conversion, not a discretionary reduction of long-held equity exposure.
How significant was the transaction relative to Jessup's prior activity?
The 23,621-share sale equated to 26.42% of direct common stock holdings, closely aligning with the 27.54% share reduction from the prior administrative sale completed in January of last year.
Did the transaction involve indirect holdings or transfers to trusts or related entities?
No indirect shares or gifts were reported; all activity pertained exclusively to direct ownership.
How does the sale relate to valuation and market context?
The weighted average sale price was around $97.05 per share, slightly above the Monday market close of $97.03, during a period when AAR Corp. had delivered a one-year total return of 43.28%.
Company overview
Revenue (TTM)
$2.97 billion
Net income (TTM)
$94.10 million
Employees
6,000
1-year price change
43.28%
* 1-year price change calculated using Monday as the reference date.
Company snapshot
AAR Corp. provides aviation aftermarket support, inventory management, maintenance, repair, overhaul, and engineering services, as well as expeditionary products for defense and government markets.
The company generates revenue primarily through aviation services contracts, supply chain logistics programs, and sales or leasing of aircraft parts and components.
It serves commercial airlines, cargo and regional operators, OEMs, leasing companies, and government/military customers worldwide.
AAR Corp. operates at scale within the global aerospace and defense sector, leveraging its expertise in aviation services and supply chain management to support commercial and government fleets. The company’s integrated business model enables stable, recurring revenue streams from long-term contracts and performance-based logistics programs. Its competitive edge is built on comprehensive service offerings, a diverse customer base, and a track record of operational reliability.
What this transaction means for investors
Jessup’s sale followed an option exercise, a structure that typically reflects liquidity and tax planning rather than a shift in conviction, though, to be clear, the function does not mention taxes. While the 23,621 shares sold represented about a quarter of his direct holdings, the proportional reduction closely mirrors his prior administrative activity.
Nevertheless, and with AAR shares solidly outperforming the broader market over the past year, investors should be watching execution, margins, and backlog strength more closely than modest, compensation-related sales. Fundamentally, the backdrop remains strong. In its most recent quarter, AAR Corp. reported revenue of $795 million, up 16% year over year, alongside adjusted diluted EPS of $1.18 and adjusted EBITDA growth of 23%. Margin expansion was driven by Parts Supply and Repair & Engineering, while recent acquisitions added long-term visibility through contracted demand. Management also raised full-year guidance, reinforcing confidence in forward cash flow generation.
Ultimately, this looks like a routine, option-driven transaction against a backdrop of improving fundamentals, expanding margins, and durable aviation demand. The investment case still rests on execution, not insider liquidity events.
Glossary
Option exercise: When an employee or insider uses their right to buy company shares at a set price.
Open-market transaction: Buying or selling securities on a public exchange, not through private or pre-arranged deals.
Direct ownership: Shares held personally by an individual, not through trusts or related entities.
Indirect holdings: Shares owned through another entity, such as a trust, family member, or related account.
Administrative trade: A transaction made for routine or planned reasons, often related to compensation or share plan management.
Derivative component: The part of a transaction involving financial instruments like options, rather than just regular shares.
Form 4: A required SEC filing disclosing insider trades by company officers, directors, or major shareholders.
Weighted average price: The average price of shares sold, adjusted for the number of shares at each price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Performance-based logistics: Service contracts where payment depends on meeting specific operational or performance goals.
Aftermarket support: Services provided after a product is sold, such as maintenance, repair, or parts supply.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano 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.

AAR Stock Up 43% in One Year as Insider Sells 23,621 Shares After Option Exercise

The Zacks Rank indicates that TAT Technologies TATT is a stock that investors may want to take profits in right away.
Trading near an all-time high of $53 a share, TATT has been lifted by positve sentiment for aerospace and defense stocks that was reignited following the U.S military operations in Venezuela.
However, TAT stock is now trading at fairly stretched levels as a provider of engineered solutions for aircraft, including components and maintenance services for F-16 fighter jets.
With it certainly appearing to be an ideal time to fade the most recent rally, TAT stock lands a Zacks Rank #5 (Strong Sell) and is the Bear of the Day.
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A Small Fish in a Big Pond
While the F-16 remains one of the most widely used and versatile aircraft in military service, the hype for TAT’s stock may be well overdone at this point with it being noteworthy that the more lucrative contracts and production of F-16s still go solely through Lockheed Martin LMT.
Furthermore, a surprisingly large ecosystem of companies perform maintenance repair overhaul (MRO), upgrades, and sustainment for the F-16 worldwide, including Amentum Holdings AMTM, AAR Corp AIR, and Top Aces, along with a slew of other private firms.
Revenue Concerns & Weak Earnings Momentum
What sets the overhyped time to sell alarm off is that TAT is not a company that recently launched an IPO, but instead has been public since 1987, and despite higher demand in recent years, is bringing in less than $300 million in annual sales.
TAT most recently missed Q3 sales estimates of $46.26 million in November and came short of the Q3 EPS Consensus of $0.40 as well.
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Following the lackluster Q3 results, EPS revisions have remained lower over the last 60 days, down by 4% and 12% for fiscal 2025 and FY26, respectively.
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Stretched Valuation & Negative Free Cash Flow
The elephant in the room is that many analysts have pointed out that TAT is nearing the overvalued zone. TAT’s 28X forward earnings multiple and forward price to sales ratio of 3X may not appear to be worrisome, but this is a far stretch from where it has traded in the past, and the company has failed to generate positive free cash flow, which weakens intrinsic value.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
It wouldn’t be surprising if a sell-off were in store for TAT Technologies' stock or if an extended correction led to the company giving back much of its recent gains.
There is no doubt that TAT has benefited from increased defense spending, but now appears to be an ideal time to take profits with its current stock price starting to reflect speculation and not improving business fundamentals.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AAR Corp. (AIR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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	110.03 25.57
Price/Sales	1.43 1.43
P/B	2.97 2.58
P/FCF	0.00 19.95

Indicator	TTM Median
ROE	2.32 15.55
ROA	0.98 6.31
ROI	4.10 9.36
Net Worth	3.16 1.47
Quick Ratio	1.31 1.16
Current Ratio	2.85 1.59

Indicator	TTM Median
Net Profit Margin	0.98 7.23
Operating Margin	7.24 10.09
Gross Margin	19.31 32.49
Return on tangible equity	18.03 26.20

Indicator	TTM Median
EPS	1.18 0.62
EPS Forecast	1.02 0.62
Revenue	740.00M 194.00M
Gross Profit	157.00M —
EBITDA	85.00M —

AAR Corp.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Efficiency

Other ratios

Revenue