Airline passengers show widespread interest in piloted air taxis, as travelers embrace the prospect of speedy, convenient and safe advanced air travelPHOENIX, March 4, 2025 /PRNewswire/ -- Honeywell (NASDAQ: HON) today released new survey results showing nearly all U.S. airline fliers (98%) would consider taking an electric vertical take-off and landing vehicle, or eVTOL, as part of their travel journey. Commonly referred to as air taxis, these piloted advanced air mobility (AAM) aircraft are poised to ent ...

Core Points - AAR CORP. has expanded its distribution support for Unison parts under a Supplier Capabilities Contract with the Defense Logistics Agency (DLA) Aviation [1][2] - This multi-year agreement enhances AAR's role in providing supply chain management support for military aircraft platforms, aiming to improve parts availability and reduce supply volatility [2][3] - AAR was the first non-OEM to secure a 20-year base Supplier Capabilities Contract with the DLA in 2022, establishing a strategic partnership for global supply chain support to the Department of Defense and U.S. allies [3][4] Company Overview - AAR is a global aerospace and defense aftermarket solutions provider, operating in over 20 countries and supporting both commercial and government customers through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [5] - Unison, a GE Aerospace company, specializes in complex gas turbine engine components and systems, serving various markets including aviation, space, and defense, with over 2,000 employees across multiple locations [6]

When a company is at the top of its industry, it is often afforded benefits that smaller players are not. Industry leaders often have key traits like economies of scale, top talent attraction, and prolific brand awareness. It often takes decades for a company to reach the pinnacle of its respective niche. Doing so demonstrates that the business has beaten out and put to bed many competitors. Mature companies often have a strong ability to return capital to shareholders. This is a key benefit for investors. ...

Company Overview - AAR Corp., based in Wood Dale, IL, provides various products and services to the aviation and defense industries globally, with principal customers including The Boeing Company and Airbus [12]. - The company operates in over 20 nations and reports through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services [12]. Investment Highlights - AAR Corp. holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong investment potential [13]. - The company has a VGM Score of B, suggesting a favorable combination of value, growth, and momentum characteristics [13]. - AAR Corp. is particularly appealing to growth investors, with a Growth Style Score of A, forecasting year-over-year earnings growth of 13.2% for the current fiscal year [13]. - Recent analyst activity shows two analysts have revised their earnings estimates higher in the last 60 days for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.14 to $3.77 per share [13]. - The company has an average earnings surprise of 3.9%, indicating a history of exceeding earnings expectations [13]. Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AAR Corp. is positioned as a strong candidate for investors seeking growth opportunities in the aviation and defense sectors [14].

Group 1 - AAR (AIR) is currently ranked 9 in the Zacks Sector Rank among 51 companies in the Aerospace group [2] - AAR has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook with a 4% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Year-to-date, AAR has returned 12.7%, outperforming the average Aerospace sector gain of 3.5% [4] Group 2 - AAR is part of the Aerospace - Defense Equipment industry, which includes 26 companies and is currently ranked 138 in the Zacks Industry Rank, with an average gain of 5.4% year-to-date [5] - Redwire Corporation (RDW), another outperforming stock in the Aerospace sector, has returned 33.2% year-to-date and has a Zacks Rank of 2 (Buy) [4][5] - The Aerospace - Defense industry, which includes Redwire Corporation, is ranked 147 and has gained 2.6% year-to-date [6]

Core Viewpoint - AAR Corp. reported strong second-quarter fiscal 2025 earnings, surpassing estimates and showing significant year-over-year growth in sales and adjusted earnings [2][4]. Financial Performance - AAR's adjusted earnings for Q2 fiscal 2025 were 90 cents per share, exceeding the Zacks Consensus Estimate of 83 cents by 8.4% and improving 11.1% from the previous year [2][3]. - The company generated net sales of $686.1 million, beating the Zacks Consensus Estimate of $652.6 million by 5.1% and increasing 25.8% from $545.4 million in the same quarter last year [4]. Segment Performance - Sales in the Parts Supply segment reached $273.7 million, up 20.3% year over year [5]. - Repair & Engineering sales were $228.8 million, reflecting a 57.4% increase from the prior-year period [5]. - Integrated Solutions sales amounted to $163.4 million, up 4.3% from the year-ago quarter [5]. - Expeditionary Services recorded sales of $20.2 million, up 27.8% year over year [5]. Operational Metrics - AAR's adjusted operating margin improved from 8.1% to 9.2%, driven by enhanced profitability in the Repair & Engineering segment [6]. - Selling, general and administrative expenses were $133.1 million, compared to $65.7 million a year ago [6]. - Net interest expenses for the quarter totaled $18.8 million, up from $5.6 million in the previous year [6]. Cash Flow and Debt - As of November 30, 2024, AAR's cash and cash equivalents were $61.7 million, down from $85.8 million as of May 31, 2024 [7]. - Long-term debt increased to $986.7 million from $985.4 million during the same period [7]. - Net cash flow from operating activities for the first six months of fiscal 2025 was $3.4 million, compared to a cash outflow of $1.3 million in the prior year [7]. Market Outlook - AAR has a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [10].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score tracks price trends to identify optimal buying opportunities [5] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify stocks with high potential [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: AAR Corp. - AAR Corp. operates in the aviation and defense sectors, serving major clients like Boeing and Airbus [11] - The company holds a 1 (Strong Buy) Zacks Rank and a VGM Score of A, indicating strong growth potential [12] - AAR Corp. is projected to achieve a year-over-year earnings growth of 13.2% for the current fiscal year, with positive earnings estimate revisions [12][13]

Core Insights - Expedia's 2025 Air Hacks Report reveals strategies to save travelers money, debunking common myths about air travel costs [1][9] - The report indicates that August is the cheapest month to travel, while February and March are the most expensive [1][15] - Booking flights on Sundays can lead to savings of up to 17%, highlighting the importance of the day of the week for flight bookings [1][15] Myth-Busting Findings - Myth 1: August is the most expensive month to travel. Reality: It is the cheapest, with potential savings of 12% domestically and 7% internationally compared to February and March [15] - Myth 2: No best day to book flights. Reality: Booking on Sundays can save domestic travelers 6% and international travelers 17% compared to Mondays or Fridays [15] - Myth 3: Day of travel does not affect cost. Reality: Traveling on Thursdays and Saturdays can save travelers 17% compared to Sundays [15] - Myth 4: Booking further in advance is always cheaper. Reality: The best time to book is 1 to 3 months in advance for domestic flights and 18 to 29 days for international flights [15] - Myth 5: Airfare increases every year. Reality: Domestic economy tickets are down 1% and international economy tickets are down 4% from the previous year [15] - Myth 6: Premium tickets are always too expensive. Reality: The price gap between premium and economy tickets has decreased by 10% since 2019 [15] - Myth 7: All flights are full. Reality: Tuesdays are the quietest travel days, with February being the least busy month [15] - Myth 8: Nothing can be done about delays and cancellations. Reality: Morning flights have a significantly lower cancellation rate compared to evening flights [15] New Tools and Features - Expedia introduced a new Flight Deals tool that surfaces fares at least 20% lower than typical predicted prices, allowing travelers to filter by destination and travel date [2][4] - The tool enables users to create custom alerts for flight deals, enhancing the booking experience [4][6]

Core Viewpoint - The Zacks Aerospace-Defense Equipment industry is poised for growth due to impressive global air passenger traffic forecasts, despite facing challenges from supply-chain disruptions that may impact demand for aircraft parts and overall profitability [1][5][6]. Industry Overview - The Zacks Aerospace-Defense Equipment industry includes companies that manufacture essential components for aerospace and defense, such as aerostructures, propulsion systems, aircraft engines, and defense electronics. These firms also provide aftermarket support services like maintenance and repair [2]. Trends Shaping the Industry - **Mergers and Acquisitions**: The industry is witnessing a trend of mergers and acquisitions aimed at expanding product lines and improving economies of scale. Notable acquisitions include Teledyne Technologies' purchase of Micropac Industries and HEICO Corporation's acquisition of Mid Continent Controls [3][4]. - **Air Traffic Growth**: The International Air Transport Association (IATA) projects an 8% growth in revenue passenger kilometers (RPKs) for 2025, with airline revenues expected to reach $1.007 trillion, a 4.4% year-over-year increase, benefiting aerospace-defense equipment stocks [5]. - **Supply-Chain Challenges**: Ongoing supply-chain disruptions are expected to continue affecting the global airline industry's profitability, with IATA estimating a 30% shortfall in 2024 aircraft deliveries and a downward revision for 2025 deliveries [6]. Industry Performance - The Aerospace-Defense Equipment industry has outperformed both the Zacks S&P 500 composite and its sector over the past year, with a collective stock surge of 37.7%, compared to 9.9% for the Aerospace sector and 24.8% for the S&P 500 [10]. - The industry currently trades at a trailing 12-month EV/Sales ratio of 7.72X, significantly higher than the S&P 500's 5.60X and the sector's 2.56X, indicating a premium valuation [12]. Notable Companies - **AAR Corp.**: Reported a 26% year-over-year increase in net sales for Q2 fiscal 2025, with a Zacks Consensus Estimate indicating a 19.5% sales improvement for fiscal 2025 [15][16]. - **Axon Enterprise**: Engaged in supplying body cameras to Loomis US, reflecting strong demand. The Zacks Consensus Estimate for 2025 sales indicates a 22.6% improvement [17][18]. - **Kratos Defense & Security Solutions**: Recently won a hypersonic system program award valued at approximately $100 million, contributing positively to its revenue outlook. The Zacks Consensus Estimate for 2025 sales indicates a 12.2% improvement [20][21].

Group 1 - AAR (AIR) is currently outperforming its Aerospace peers with a year-to-date performance of 15.1%, compared to an average gain of 6% for the sector [4] - AAR holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 4% increase in the consensus estimate for full-year earnings over the past three months [3] - The Aerospace - Defense Equipment industry, which includes AAR, has an average gain of 38.8% year-to-date, suggesting that AAR is slightly underperforming its industry [6] Group 2 - Redwire Corporation (RDW) is another stock in the Aerospace sector that has outperformed, with a year-to-date increase of 29% and a consensus EPS estimate increase of 137.1% over the past three months [4][5] - The Aerospace - Defense industry, which includes Redwire Corporation, has seen a decline of 4.4% since the beginning of the year, indicating a challenging environment for this specific industry [7]