Core Viewpoint - Defense and aerospace stocks are expected to continue their strong performance in 2026 due to rising geopolitical tensions and increased defense spending globally [1][2]. Geopolitical Context - The geopolitical landscape is shifting towards decentralized deterrence, leading to increased policy uncertainty [3]. - The U.S. military budget is proposed to increase to $1.5 trillion from $901 billion, which is a significant driver for defense stock gains [3]. Market Performance - The S&P Aerospace & Defense Select Industry Index has risen by 14% year-to-date, significantly outperforming the S&P 500, which has only increased by 1% [2]. - European countries are expected to increase their defense budgets to up to 3% of GDP, resulting in a projected 140% to 240% increase in spending on defense equipment [5]. Company Highlights - **Textron Inc. (NYSE:TXT)**: - Year-to-date gain of 10.96% with 36 hedge fund holders [11]. - Secured a $163.4 million contract to provide military vehicles to Ukraine [11][12]. - Analysts at Jefferies raised the price target to $115, expecting solid financial results [13]. - **AeroVironment, Inc. (NASDAQ:AVAV)**: - Year-to-date gain of 21.08% with 37 hedge fund holders [15]. - Analysts expect the company to benefit from U.S. and global defense priorities, with a price target set at $400 [15][16]. - Despite a stop-work order from the U.S. Department of Defense, RBC Capital maintains an Outperform rating with a price target of $375 [17].

Core Insights - The new CEO of Airbus' jet-making division has committed to increasing production, particularly of the A350 wide-body jet, and supports the idea of a larger version of the regional A220 [1] Group 1 - The focus on increasing production indicates a strategic shift towards meeting growing demand in the aviation market [1] - The emphasis on the A350 suggests that Airbus is prioritizing its wide-body segment, which may enhance its competitive position against rivals [1] - Supporting a larger version of the A220 reflects Airbus' intention to expand its regional aircraft offerings, potentially capturing a broader market share [1]

SpaceX eyes mid-March for first test of upgraded Starship rocket https://t.co/2hc2wyV0GS ...

Earnings Focus - Major companies reporting earnings this week include Tesla, Meta, Microsoft, and Apple, all of which are currently trading below their recent all-time highs, indicating potential investment opportunities [2][3] - Other significant earnings reports will come from US consumer stocks such as Visa, Mastercard, and American Express, providing insights into the US consumer market [2][3] Federal Reserve Meeting - The Federal Reserve meeting is anticipated to have a 97% chance of maintaining current interest rates, with the press conference expected to cover various topics including Fed independence and future interest rate outlooks [4][5][6] - Market reactions may be influenced by discussions surrounding the dollar and Japanese yen, particularly in relation to potential interventions by the Japanese bank [7][9] Precious Metals Market - Gold prices have surged above $5,000, with a notable increase of $85, reflecting its status as a safe haven asset amid a declining US dollar [8][10] - The relationship between a lower US dollar and higher precious metals prices is highlighted, with the Japanese yen also showing a 1.2% increase [9][10] Weather Impact - Severe winter weather is affecting various regions, including record low temperatures and power outages impacting hundreds of thousands of people, which may have economic implications [11][12][13]

Core Viewpoint - Boeing is experiencing a significant upward trend, with a 41% increase from year-ago levels, reaching two-year highs, indicating positive market sentiment and performance expectations [2]. Group 1: Stock Performance and Trends - Boeing's stock has shown a parabolic move over the last six to nine months, with a notable increase from previous years, although it remains below its all-time high of 446 reached in mid-2018 [3][4]. - The stock's recent performance includes a "golden cross" where the 50-day moving average has moved above the 200-day moving average, suggesting bullish momentum [5]. - The Relative Strength Index (RSI) is above 75, indicating that the stock is overbought on a technical basis, but positive news regarding new orders has contributed to this momentum [6]. Group 2: Market Expectations and Options Strategy - The options market is pricing in a potential move of approximately ±4.5%, equating to just over $11, indicating lower implied volatility at 13%, which is in the bottom 90% of the past 52 weeks [8]. - A neutral to bullish options strategy is suggested, involving a short $10 wide put vertical, which allows for profit even if the stock declines post-earnings [9][10]. - The proposed strategy includes selling an out-of-the-money put at a strike price of 242.5 and buying a put at 232.5, with a potential credit of approximately $2.30, and a break-even point at $240.20, which is about 4.6% below the current share price [10][11].

The Boeing Company (NYSE:BA) will release earnings for its fourth quarter before the opening bell on Tuesday, Jan. 27.Analysts expect the Arlington, Virginia-based company to report fourth-quarter loss of 39 cents per share. That’s lesser from the loss of $5.90 per share in the year-ago period. The consensus estimate for Boeing's quarterly revenue is $22.47 billion (it reported $15.24 billion last year), according to Benzinga Pro.On Jan. 13, Boeing said it delivered 600 airplanes in 2025.Shares of Boeing ro ...

Core Viewpoint - Maris-Tech Ltd. and Sidus Space have achieved a significant integration milestone as Maris-Tech's advanced payload is set to fly aboard Sidus' LizzieSat-4 mission, with hardware testing and platform integration commencing ahead of the planned launch later this year [1][2][3] Group 1: Integration and Testing - The transition from planning to active integration has been marked, with testing of Maris-Tech's payload hardware scheduled to begin next week [2] - Upon completion of initial testing, the payload will be integrated onto the LizzieSat-4 satellite, moving both companies closer to flight readiness [2][3] Group 2: Technical Significance - The integration milestone is critical for preparing LizzieSat-4 for launch, highlighting the maturity of the LizzieSat platform and its capability to support advanced customer technologies [3] - Maris-Tech's payload aims to demonstrate high-performance edge computing and video processing capabilities in orbit, supporting real-time data handling and advanced analytics for space and defense applications [3][4] Group 3: Company Profiles - Maris-Tech is recognized as a leader in video and AI-based edge computing technology, providing intelligent video transmission solutions for various industries, including defense and aerospace [5] - Sidus Space offers flexible and cost-effective solutions in satellite manufacturing and technology integration, with a commitment to rapid innovation and optimization of space systems [6]

Core Insights - The acquisition of XREAL enhances Drone Nerds' portfolio by integrating wearable augmented reality technology, which transforms content experience and information visualization [1][2] - XREAL's product ecosystem aims to provide a seamless augmented reality experience, combining advanced display technology and mobile connectivity for personal and professional use [3][4] Company Overview - XTI Aerospace, Inc. focuses on vertical flight technology and, through its subsidiary Drone Nerds, offers unmanned aircraft systems and solutions [5] - Drone Nerds, established in 2014, provides comprehensive drone solutions tailored to various operational needs across multiple industries [7] Product Details - XREAL's flagship product, the XREAL One Pro, features an expanded field of view and high-quality audio for immersive experiences, while the XREAL 1S offers a compact option for everyday use [10] - Additional products include the XREAL Beam Pro for app-based virtual screens and the XREAL Hub for fast charging and video passthrough, enhancing user experience [10]

Core Viewpoint - Boeing's plans to increase jetliner production and its outlook for improving free cash flow will be significant topics for analysts and investors during the fourth-quarter report [1] Group 1 - Boeing is expected to provide insights on its strategy to ramp up jetliner production [1] - The company aims to enhance its free cash flow in the upcoming years, which will be closely monitored by stakeholders [1]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.In a prior report, I added ATI Inc. ( ATI ) to my coverage . In the comment section of that report, I also received comments from readers to cover Carpenter Technology, which has a similar setup and end-marketDhierin-Perkash Bechai is an aerospace, ...