Core Viewpoint - AAR Corporation is a significant player in the aviation services industry, providing various products and services to commercial aviation, government, and defense markets, with a focus on maintenance, repair, and overhaul services, as well as supply chain management solutions [1] Group 1: Stock Performance and Ratings - KeyBanc upgraded AAR Corporation to "Overweight" with a price target of $109, indicating a positive outlook on the stock priced at $97.71 [2][6] - The stock experienced a slight decrease of 0.52%, with a trading range of $97.27 to $99.65 on the day [4][6] - Over the past year, AAR's stock reached a high of $99.65 and a low of $46.51, indicating significant price movement [4] Group 2: Market Capitalization and Trading Volume - AAR's market capitalization is approximately $3.56 billion, with a trading volume of 565,946 shares [5] Group 3: Momentum Investing - AAR is considered a strong momentum stock, appealing to momentum investors, and has achieved a Momentum Style Score of A according to Zacks Investment Research [3][6] - Price changes and earnings estimate revisions are highlighted as key factors in evaluating momentum stocks, further supporting AAR's strong momentum profile [5]

Group 1 - Top Wall Street analysts have revised their outlook on several prominent companies, indicating a shift in market sentiment [1] - The article suggests that investors consider buying OKTA stock, highlighting positive analyst opinions [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: AAR (AIR) - AAR currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [3] Price Performance - AAR shares have increased by 14.9% over the past week, outperforming the Zacks Aerospace - Defense Equipment industry, which rose by 9.54% [5] - Over the past month, AAR's stock price has changed by 18.76%, compared to the industry's 15.22% [5] - In the last quarter, AAR shares rose by 16.91%, and over the past year, they have increased by 41.44%, while the S&P 500 saw gains of 6.77% and 21.08%, respectively [6] Trading Volume - AAR's average 20-day trading volume is 576,276 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, two earnings estimates for AAR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.56 to $4.92 [9] - For the next fiscal year, two estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, AAR is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [10]

Company Overview - AAR Corp. (NYSE:AIR) is a significant player in the aerospace and defense sector, providing components, engineering services, and various products to the aerospace industry [2]. Stock Performance - AAR Corp.'s shares have increased by 39.7% over the past year and by 16.7% year-to-date [2]. Analyst Ratings and Price Targets - RBC Capital raised its price target for AAR Corp. from $90 to $105 while maintaining an Outperform rating, citing the company's potential for mergers and acquisitions due to a healthy leverage ratio [2]. - Keybanc also maintained an Overweight rating in January, setting a price target of $93, highlighting contributions from parts distribution activity and market share gains to the company's recent quarterly performance [2]. Market Demand - Jim Cramer emphasized the strong demand for AAR Corp., noting that aerospace is a significant theme for 2026, as the company engages in leasing commercial jets and repairing engines [3].

Core Viewpoint - AAR's stock has shown strong performance, increasing by 18.8% over the past month and reaching a 52-week high of $98.92, with a year-to-date gain of 18.7% compared to the broader aerospace sector and defense equipment industry [1][2]. Financial Performance - AAR has consistently exceeded earnings expectations, reporting an EPS of $1.18 against a consensus estimate of $1.02 in its last earnings report [2]. - For the current fiscal year, AAR is projected to achieve earnings of $4.91 per share on revenues of $3.2 billion, reflecting a 25.83% increase in EPS and a 15.23% increase in revenues. The next fiscal year forecasts earnings of $5.8 per share on revenues of $3.41 billion, indicating year-over-year changes of 17.99% and 6.51%, respectively [3]. Valuation Metrics - AAR's current valuation metrics indicate a trading multiple of 20X current fiscal year EPS estimates, which is below the peer industry average of 36.2X. On a trailing cash flow basis, AAR trades at 18X compared to the peer group's average of 34.8X, suggesting it is not among the top value stocks [6]. Zacks Rank and Style Scores - AAR holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, which aligns with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [7]. - The stock has a Value Score of C, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of A, indicating strong growth potential [6][7].

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - AAR (AIR) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 26.7%, with projected EPS growth of 25.7% this year, surpassing the industry average of 20.7% [4] Group 2: Financial Metrics - AAR's year-over-year cash flow growth is 23.7%, exceeding the industry average of 18.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 10.7%, compared to the industry average of 8.3% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for AAR, with the Zacks Consensus Estimate for the current year increasing by 7.9% over the past month [7] - AAR's combination of a Zacks Rank 1 and a Growth Score of A indicates its potential as a strong performer for growth investors [9]

Core Insights - AAR Corp. has demonstrated strong performance with a one-year total return of 43.28%, and the recent share sale by a senior vice president occurred at a weighted average price of $97.05 per share, slightly above the market close of $97.03 [1][4][7] Company Overview - AAR Corp. provides a range of aviation aftermarket support services, including inventory management, maintenance, repair, overhaul, and engineering services, primarily targeting defense and government markets [1][5] - The company operates within the global aerospace and defense sector, leveraging its expertise to support both commercial and government fleets, which contributes to stable, recurring revenue streams from long-term contracts [5] Transaction Details - The recent transaction involved the direct sale of 23,621 shares by senior vice president Christopher Jessup, which represented 26.42% of his direct common stock holdings [2][4] - This sale was executed following the exercise of 14,652 options for common stock, indicating that the primary intent was liquidity from option conversion rather than a discretionary reduction of equity exposure [3][6] Financial Performance - In the most recent quarter, AAR Corp. reported revenue of $795 million, reflecting a 16% year-over-year increase, with adjusted diluted EPS of $1.18 and adjusted EBITDA growth of 23% [7] - Margin expansion was attributed to the Parts Supply and Repair & Engineering segments, while recent acquisitions have provided long-term visibility through contracted demand [7] Market Context - The share sale is viewed as routine and option-driven, occurring against a backdrop of improving fundamentals, expanding margins, and durable demand in the aviation sector [8]

Core Insights - The article highlights the expertise of Dhierin-Perkash Bechai as an aerospace, defense, and airline analyst, emphasizing his background in aerospace engineering and his role in identifying investment opportunities within these sectors [1] Group 1: Analyst Profile - Dhierin-Perkash Bechai runs The Aerospace Forum, which focuses on discovering investment opportunities in the aerospace, defense, and airline industries [1] - The analyst provides context to industry developments and their potential impact on investment theses, driven by data-informed analysis [1] - The investing group offers direct access to data analytics monitors, enhancing the analytical capabilities for investors [1]

Core Insights - The article highlights the expertise of Dhierin-Perkash Bechai as an aerospace, defense, and airline analyst, emphasizing his background in aerospace engineering and his role in identifying investment opportunities within these sectors [1] Group 1: Analyst Profile - Dhierin-Perkash Bechai runs The Aerospace Forum, which focuses on discovering investment opportunities in the aerospace, defense, and airline industries [1] - The analyst provides context to industry developments and their potential impact on investment theses, driven by data-informed analysis [1] - The investing group offers direct access to data analytics monitors, enhancing the analytical capabilities for investors [1]

Core Insights - AAR Corp. is a significant player in the aviation services industry, offering a variety of products and services to both commercial aviation and government clients, with a focus on maintenance, repair, and overhaul services [1] Executive Stock Transactions - Jessica A. Garascia sold 4,787 shares at approximately $95.25 each on January 8, 2026, retaining 29,557 shares, indicating her continued investment in the company [2] - CEO John Mcclain Holmes III sold 23,077 shares at an average price of $84.12 on January 2, 2026, totaling about $1.94 million and reducing his ownership by 8.87%, while AAR's stock opened at $91.25, reflecting a 2.0% increase [3] Financial Metrics - AAR has a P/E ratio of 36.81, indicating strong investor confidence in its earnings potential, with a price-to-sales ratio of 1.15 and an enterprise value to sales ratio of 1.48, suggesting balanced market valuation relative to sales [4] - The company maintains a debt-to-equity ratio of 0.67, indicating moderate debt use, and a current ratio of 2.84, suggesting strong capability to meet short-term obligations, alongside an earnings yield of 2.72% [5] - Overall financial metrics highlight AAR's market standing and financial health, with strategic decisions aimed at maintaining its competitive position in the aviation services industry [6]