Why AAR Corp. (AIR) Is Surging in 2025?
We recently published a list of . In this article, we are going to take a look at where AAR Corp. (NYSE:AIR) stands against other aerospace stocks that are surging in 2025.
The aerospace industry is riding a wave of growth as global conflicts across the world have sparked a surge in demand. This has led to swelling backlogs and a flood of orders from every corner of the globe. Meanwhile, recent administration changes in the United States have shaken things up. European countries are ramping up their aerospace orders and are eager to secure advanced technology.
Some nations have hesitated over U.S. orders amid shifting policies, but cancellations seem unlikely since trade wars have simmered down a bit. Beyond geopolitics, the industry is buzzing with other trends. The commercial aviation sector is roaring back with record passenger traffic. This has pushed airlines to modernize fleets with fuel-efficient aircraft.
Moreover, AI software is making defense aircraft more potent, and the entire industry has seen a bump in growth.
For this article, I screened the best-performing aerospace stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A technician inspecting a commercial jet engine in a specialized testing facility.
Number of Hedge Fund Holders In Q4 2024: 19
AAR Corp. (NYSE:AIR) is an aerospace and defense aftermarket solutions company.
The stock is up significantly so far in 2025 as AAR Corp. (NYSE:AIR) announced the sale of its Miami-based Landing Gear Overhaul business to GA Telesis for $51 million.
The transaction is expected to close in the first quarter of 2025. It is a part of AAR's strategic portfolio optimization plan. It is anticipated to be immediately accretive to margins and earnings.
AAR Corp. (NYSE:AIR) reported robust financial performance for the second quarter of fiscal year 2025, with sales reaching $686 million, up 26% year-over-year.
Moreover, AAR Corp. (NYSE:AIR) signed a multi-year component repair agreement with Cebu Pacific Air to provide nacelle maintenance, repair, and overhaul services for its A320 fleet powered by CFM56-5B engines.
The consensus price target of $81.5 implies 16.85% upside.
AIR stock is up 13.61% year-to-date.
Overall, AIR ranks 15th on our list of aerospace stocks that are surging in 2025. While we acknowledge the potential of AIR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AIR but that trades at less than 5 times its earnings, check out our report about the .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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