Time to Buy Aerospace Defense Stocks for Higher Highs

Core Viewpoint - The Aerospace Defense sector is experiencing significant growth due to increased global military spending and rising demand for defense technology, leading to positive earnings estimate revisions for several stocks [1]. Group 1: Aerospace-Defense Industry Performance - Howmet Aerospace (HWM) and Safran (SAFRY) are standout companies in the Zacks Aerospace-Defense Industry, which ranks in the top 16% of over 240 Zacks industries, with year-to-date stock gains of +55% and +35% respectively, outperforming the industry average return of +17% [2]. - Safran is gaining investor interest due to a surge in aircraft orders amid geopolitical uncertainties in Europe, while Howmet has achieved steady growth through international expansion across North America, Europe, Australia, China, and Japan [3]. Group 2: Aerospace-Defense Equipment Industry Highlights - The Zacks Aerospace-Defense Equipment Industry, currently in the top 17% of all Zacks industries, includes three stocks on the Zacks Rank 1 (Strong Buy) list: Astronics (ATRO), Elbit Systems (ESLT), and Triumph Group (TGI) [5]. - Astronics has led the industry with nearly +100% gains this year, specializing in lighting and electronics for military and commercial aircraft [6]. - Elbit is recognized as a leader in Night Vision Goggles Head-Up Displays (NVG-HUD) for helicopters, while Triumph produces a wide range of aircraft parts [7]. Group 3: Earnings Growth Projections - The Aerospace-Defense Equipment industry has a projected EPS growth rate of 18.54% for 2025, with Astronics and Elbit expected to exceed this rate, while Triumph's annual earnings are projected to grow by 14% [8]. - The upward trend in EPS estimates for fiscal 2025 and FY26 suggests potential for further growth in these aerospace defense stocks, indicating it may be an opportune time for investment [10][12].