Core Insights - AAR Corp. (AIR) stock has increased by 66.3% over the past year, outperforming the Zacks Aerospace-Defense Equipment industry growth of 35.8%, the Aerospace sector's growth of 31.3%, and the S&P 500's rise of 17.7% [1][8] Performance and Financials - AIR reported a revenue growth of 16% and a 31% increase in net adjusted earnings for the second quarter of fiscal 2026 compared to the previous year [4][8] - The Zacks Consensus Estimate for AIR's fiscal 2026 revenues indicates a 15.2% improvement from the prior year, with earnings also expected to show solid increases [9] Market Position and Valuation - AIR shares are trading at a forward Price/Sales (P/S) ratio of 1.33X, which is significantly lower than the industry average of 12.48X, indicating a discount compared to peers [12] - Industry peers Kratos Defense & Security Solutions (KTOS) and AeroVironment (AVAV) are trading at higher P/S ratios of 9.64X and 5.78X, respectively [14] Growth Drivers - AIR's growth is supported by facility expansions, including the enhancement of its Airframe MRO facility in Oklahoma City, which aims to meet increasing demand from commercial and government customers [5] - The Trax business is also contributing positively, with a recent multi-year contract extension with Air Atlanta Icelandic, which will adopt new technology solutions to improve maintenance efficiency [6] Liquidity and Financial Health - AIR has a current ratio of 2.85, indicating sufficient capital to cover short-term debt obligations, which is favorable for its financial health [15]