This article looks at the 10 Best Aerospace Stocks to Buy Now.
On Sunday, the United States and the European Union agreed to a trade deal, ending a months-long standoff between the two major economic allies. President Trump and the European Commission President met in Scotland, and after an hour-long meeting, the pair agreed to a 15% import tariff on most EU goods.
However, the deal offers protection for certain industries, including aerospace, with aircraft and aviation parts spared from tariffs, according to European officials. Industry experts see the provisional agreement as a boost to the sector and expect it to help avoid any potential threats to aircraft production and deliveries in both regions.
The trade deal follows months of discreet, uncharacteristic unity among rival plane manufacturers as they campaigned for tariff-free trade in civil aircraft.
With that said, let’s discuss some of the best aerospace stocks to invest in right now.
Our Methodology
We used screeners to identify stocks in the aerospace industry. From there, we selected the top 10 stocks with the highest number of hedge fund investors having a stake in them, based on Insider Monkey’s database of 1,000 prominent hedge funds as of Q1 2025, and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Aerospace Stocks to Buy Now:
10. Spirit AeroSystems Holdings, Inc. (NYSE:SPR)
Number of Hedge Fund Holders: 47
Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is among the 10 Best Aerospace Stocks to Buy Now. According to recent press reports, Airbus has agreed to provide additional support worth $94 million to the aerostructures supplier, bringing the total financial support to $152 million.
The financial assistance comes in the form of advance payments for aircraft parts. However, the money is to be used exclusively for Airbus programs.
Earlier this year, Airbus announced the signing of a definitive agreement to acquire several industrial assets of Spirit AeroSystems Holdings, Inc. (NYSE: SPR) dedicated to commercial aircraft programs, including the production of A220 wings in Belfast, Northern Ireland.
Latest accounts for Spirit AeroSystems Holdings, Inc. (NYSE:SPR)’s Belfast factory, which is split between Airbus and Boeing, reveal the facility’s losses have ballooned from $338 million to $506 million for the year ended December 2024. Auditors have warned that without further external support, the factory may not stay afloat by the end of September next year.
9. StandardAero, Inc. (NYSE:SARO)
Number of Hedge Fund Holders: 50
StandardAero, Inc. (NYSE:SARO) is among the 10 Best Aerospace Stocks to Buy Now. The company recently announced the expansion of its CFM International CFM56-7B services portfolio to include exchange engine solutions. The new offering introduces an added service option for Boeing 737NG customers.
Under the program, StandardAero, Inc. (NYSE:SARO) will provide a serviceable CFM56-7B turbofan engine in exchange for an unserviceable powerplant. The approach offers a responsive solution for various customers, including airlines and other asset owners. The company has a proven track record of providing exchange solutions on other engine platforms and is now applying this expertise to the CFM56-7B program.
StandardAero, Inc. (NYSE:SARO) recently completed a similar exchange with India’s Stellar Aviation Solutions Pvt. Ltd, delivering a serviceable, warrantied CFM56-7B26/3 engine for a time-expired unit in exchange. The deal was completed in six weeks, enabling the Indian aviation firm to assist with returning a Boeing aircraft to service for urgent cargo operations.
Guillaume Limouzy, Airline Sales Director for StandardAero, Inc. (NYSE:SARO)’s Airlines & Fleet business unit, stated the following on the portfolio expansion:
“StandardAero is delighted to expand its portfolio of CFM56-7B service offerings to our customers worldwide through the addition of exchange engine solutions. Working closely with our in-house asset management specialists, and our CFM56-7B MRO facilities in Dallas and Winnipeg, we are able to provide customers such as Stellar Aviation with responsive engine solutions which meet StandardAero’s rigorous quality standards.”
8. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holders: 54
Northrop Grumman Corporation (NYSE:NOC) is among the 10 Best Aerospace Stocks to Buy Now. On July 23, Truist Securities raised the stock’s price target to $625 from $550 and reiterated a Buy rating for its shares.
The adjustment followed the company’s second-quarter earnings call, in which it reported strong sequential sales growth and outstanding operating performance, amid robust demand for its military aircraft and defense systems.
Truist analysts noted Northrop Grumman Corporation (NYSE:NOC)’s progress on the Sentinel program, the company’s long-term growth potential, free cash flow, and the overall positive commentary around the B-21 Raider program as factors behind the price target hike.
During the same week, several other leading firms also raised their price targets for Northrop Grumman Corporation (NYSE:NOC). These included Baird, BofA Securities, JPMorgan, and RBC Capital.
Northrop Grumman Corporation (NYSE:NOC) is an American aerospace and defense manufacturer. The stock has gained 21% year-to-date, with geopolitical tensions simmering in different parts of the world.
7. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holders: 56
Howmet Aerospace Inc. (NYSE:HWM) is among the 10 Best Aerospace Stocks to Buy Now. On July 17, Morgan Stanley hiked the stock’s price target to $210 from $170, while maintaining an Overweight rating for its shares.
Analyst Kristine Liwag noted the record multiples aerospace stocks were trading at, while adding that the expansion reflected the sector’s resilience. She expects the dynamics to ‘largely remain on trend’.
The Morgan Stanley analyst also highlighted the improvements in the aero supply chain, Boeing’s output momentum, and robust air traffic demand, which continue to favor stocks in the sector with a mix of aftermarket and OEM exposure.
The price target of $210 for Howmet Aerospace Inc. (NYSE:HWM) represents a nearly 12% upside potential from its trading value at close on July 28.
On July 14, analysts at Susquehanna also raised Howmet Aerospace Inc. (NYSE:HWM)’s price target to $210 from $170, and reiterated the prior Positive rating for the stock.
6. HEICO Corporation (NYSE:HEI)
Number of Hedge Fund Holders: 65
HEICO Corporation (NYSE:HEI) is among the 10 Best Aerospace Stocks to Buy Now. On July 24, the company announced the acquisition of Gables Engineering, Inc., a leading provider of advanced avionics controls, for cash at closing.
While further financial details were not stated, HEICO Corporation (NYSE:HEI) said that it expects the acquisition to be accretive to earnings within a year of purchase. The company’s Executive Chairman, Laurans A. Mendelson, Eric A. Mendelson, and Victor H. Mendelson, the two co-CEOs, stated the following in a joint statement:
“Gables Engineering is a natural fit for HEICO’s culture of performance, innovation, and long-term growth. Located close to HEICO’s headquarters and numerous other HEICO facilities, this acquisition reinforces our commitment to investing in high-quality, American manufacturing and engineering excellence.”
Gables Engineering performs key manufacturing and engineering functions in its facility in Coral Gables. It is recognized as a pioneering aviation innovator, having developed advanced solutions for several leading aerospace platforms, including Boeing, for which it recently built modern touchscreen cockpit displays for the 737 MAX.
HEICO Corporation (NYSE:HEI) is an aerospace and technology company that manufactures jet engines and aircraft parts. It also supports the government through activities such as reverse engineering, manufacturing aircraft engines and parts, and repair and maintenance services.
5. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 68
Lockheed Martin Corporation (NYSE:LMT) is among the 10 Best Aerospace Stocks to Buy Now. On July 24, Sikorsky, Heli-One, and Milestone Aviation announced an initiative to establish a Center of Excellence for S-92 helicopter fleets in Rio de Janeiro, Brazil.
The partnership intends to leverage the combined capabilities of the three companies to provide comprehensive maintenance and support services to customers. Another objective is also to enhance support for S-92 operations in Brazil and other parts of South America through improved mission readiness and fleet availability.
Leon Silva, Vice President of Global Commercial and Military Systems at Lockheed Martin Corporation (NYSE:LMT)’s Sikorsky, stated the following on the development:
“We are committed to providing our customers with rigorous and dependable capabilities that ensure the continued success of the S-92 helicopter. This initiative combines the best skills, expertise and technologies from across the industry to enable customers to keep their S-92 helicopters in service for longer and maximize operational readiness.”
Sikorsky, a Lockheed Martin Corporation (NYSE:LMT) company, has advanced aerospace and defense capabilities in Brazil for nearly half a century. More than 30 S-92 operate in the country, with support from local FSL near operators Lider Aviation, CHC Helicopter, and Omni Helicopters International.
The helicopter is certified by the Brazilian National Civil Aviation Agency. In recent months, Sikorsky has announced several enhancements to the aircraft, reflecting a continued commitment to the platform.
4. TransDigm Group Incorporated (NYSE:TDG)
Number of Hedge Fund Holders: 78
TransDigm Group Incorporated (NYSE:TDG) is among the 10 Best Aerospace Stocks to Buy Now. On July 14, Susquehanna analyst Charles Minervino hiked the stock’s price target to $1,600 from $1,300, while maintaining a Neutral rating for its shares.
The firm believes that tailwinds in the commercial aerospace and defense industry heading into the second-quarter earnings season are setting the stage for an encouraging outlook for 2025 and beyond. Minervino noted the improvement in production, deliveries, and orders on the commercial front and described it as a favorable development for the overall supply chain.
Earlier in the month, on July 11, Truist Securities lifted TransDigm Group Incorporated (NYSE:TDG)’s price target to $1,730 from $1,553 and reiterated a Buy rating for its shares, as part of a broader research note previewing Q2 results for companies in the sector.
Analyst Michael Ciarmoli said that commercial aerospace and defense companies should be able to manage the impact from tariffs. He also cited favorable global defense spending and strength in the commercial aerospace aftermarket as important factors behind the latest rating update.
On July 2, Keybanc raised TransDigm Group Incorporated (NYSE:TDG)’s price target to $1,700 from $1,500 and maintained an Overweight rating for its shares, citing a robust aftermarket environment and rising demand for defense products worldwide.
Overall, Wall Street analysts are bullish on the stock, with a consensus Buy rating and a one-year average share price target of $1,644, representing an upside potential of 2.4% as of the close of business on July 28.
3. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 79
RTX Corporation (NYSE:RTX) is among the 10 Best Aerospace Stocks to Buy Now. On July 28, the company announced that its Raytheon business has launched MTS-A HD, a new variant of Multispectral Targeting System, offering significant visual enhancements for maritime helicopter operations.
This next-generation variant will deliver enhanced targeting precision, expanded operational flexibility, and improved imaging clarity for naval helicopter platforms. RTX Corporation (NYSE:RTX) said it is working with both commercial and industrial partners to accelerate production and reduce system costs of the new variant.
MTS-A HD is a new addition to Raytheon’s MTS family of sensors, which are already installed on more than 400 American Navy helicopters. The new variant is also attracting international interest from across the world.
Bryan Rosselli, President of Advanced Products & Solutions at Raytheon, stated the following on the introduction of the new advanced targeting system:
“Navy helicopter pilots need the clearest possible view when flying in hostile areas. Our new high-definition sensor system provides aircrews with superior visual capability, allowing them to make faster and more informed decisions when it matters most.”
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. The stock has gained 35% year-to-date, as of the close of business on July 28.
2. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 96
The Boeing Company (NYSE:BA) is among the 10 Best Aerospace Stocks to Buy Now. On Sunday, union members at its St. Louis defense hub overwhelmingly voted to reject a contract offer, resulting in the aerospace giant preparing for an imminent strike.
The proposal included a 20% wage boost over four years, a $5,000 ratification bonus, more vacation time, and sick leaves. However, the International Association of Machinists and Aerospace Workers (IAM) voted against the contract, saying it fell short of addressing the priorities and sacrifices of the workforce.
Dan Gillian, a senior executive at The Boeing Company (NYSE:BA) expressed disappointment at employees striking down the proposal, while adding that this was the ‘richest contract’ ever presented to IAM 837 and that it addressed all their priorities.
The rejection of the contract is being followed by a seven-day cooling-off period, in which The Boeing Company (NYSE:BA)’s management has another opportunity to win over the workers by sweetening its offer. However, Gillian said that the company had activated its contingency plan and was now preparing for a strike.
Industry experts believe any labor strife would be costly for The Boeing Company (NYSE:BA)’s defense division, which is in the middle of a turnaround and expanding manufacturing in the St. Louis area, especially after winning the contract for the F-47 fighter jet earlier this year.
1. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 104
GE Aerospace (NYSE:GE) is among the 10 Best Aerospace Stocks to Buy Now. On July 24, the Turkish Aerospace Industries (TAI) announced signing an agreement with the company to strengthen the F404 turbofan engines and any potential future collaborations related to Turkiye’s HURJET jet trainer.
According to reports in the Turkish press, the pact signed in Istanbul during the IDEF International Defense Industry Fair is aimed at using these engines in the HURJET and for the necessary procurement for integration. Another objective is also to get GE Aerospace (NYSE:GE)’s support in the flight test activities of the new prototypes.
Moreover, TAI and GE Aerospace (NYSE:GE) have also agreed to undertake additional steps on the maintenance, repair, and overhaul of the F404 engine, the Anadolu Agency reported on Wednesday last week.
GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 25,000 military and 45,000 commercial aircraft engines. The stock has surged 62% year-to-date, as of the close of business on July 28.
While we acknowledge the potential of GE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GE and that has 100x upside potential, check out our report about this cheapest AI stock.
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