5 Most Undervalued Defense Stocks to Buy According to Analysts

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1. StandardAero, Inc. (NYSE:SARO)

Forward P/E: 15.72

StandardAero, Inc. (NYSE:SARO) announced on April 22 a long-term agreement with Rolls-Royce to provide repair and overhaul support for the MT7 marine gas turbine engine at its Maryville, Tennessee facility. The engine powers the U.S. Navy’s Ship to Shore Connector program, highlighting StandardAero’s expanding role in supporting critical naval mobility infrastructure.

On April 7, Jefferies lowered its price target on StandardAero, Inc. (NYSE:SARO) to $34 from $38 while maintaining a Buy rating, trimming near-term earnings expectations due to slightly weaker organic growth assumptions. The firm still views the company’s fundamentals positively despite modest downward revisions.

StandardAero, Inc. (NYSE:SARO) is a leading independent maintenance, repair, and overhaul provider serving commercial, military, business aviation, and industrial power customers. The company is headquartered in Scottsdale, Arizona, and was founded in 1911.

The long-term Rolls-Royce agreement enhances StandardAero’s exposure to stable, high-value defense-related maintenance contracts. Despite near-term earnings adjustments, its entrenched position in essential aviation and naval support services underpins durable long-term cash flow potential.

While we acknowledge the potential of SARO as the most undervalued defense stock to buy according to analysts, 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 SARO and that has 100x upside potential, check out our report about this cheapest AI stock.

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