Here's Why You Should Add AAR Stock to Your Portfolio Right Now

AAR Corp.’s AIR robust presence in the aerospace Maintenance, Repair and Overhaul ("MRO") market, solid liquidity and low debt are strong positives. Given its growth prospects, AIR makes for a solid investment option in the Aerospace sector.Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.Growth Projections & Surprise History of AIRThe Zacks Consensus Estimate for fiscal 2025 earnings per share is pegged at $3.75, which indicates year-over-year growth of 12.6%.The consensus estimate for fiscal 2025 sales is $2.76 billion, which indicates year-over-year growth of 18.9%.It delivered an average earnings surprise of 3.90% in the last four quarters.AAR Stock’s Debt PositionCurrently, the company’s total debt to capital is 45.51%, better than the industry’s average of 54.03%.AIR’s times interest earned (TIE) ratio at the end of the first quarter of fiscal 2025 was 1.53. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.AIR’s LiquidityAIR’s current ratio at the end of the fiscal first quarter was 2.68. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.AIR’s Focus on the MRO MarketThe commercial aerospace industry has been witnessing a solid increase in the utilization of existing aircraft, which, in turn, has been driving the demand for aircraft maintenance. To reap the benefits of the growing MRO prospects, AAR has been making notable efforts. The company broke ground on additional hangars in Miami, FL, and Oklahoma City, OK, in March and April 2024, respectively. These larger capacity hangers will increase AAR’s existing footprint through increased efficiency and improved throughput.AIR Stock’s Price PerformanceShares of AIR have gained 16.5% in the past month compared with the industry’s 2.4% growth.Image Source: Zacks Investment ResearchOther Stocks to ConsiderOther top-ranked stocks from the same industry are Mercury Systems MRCY, Kratos Defense & Security Solutions, Inc. KTOS and Leonardo DRS, Inc. DRS. Mercury Systems sports a Zacks Rank of 1 at present, while Kratos and Leonardo carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Mercury Systems has a long-term earnings growth rate of 13.2%. The Zacks Consensus Estimate for MRCY’s fiscal 2025 sales is pinned at $848.9 million, which indicates year-over-year growth of 1.6%.Kratos delivered an average earnings surprise of 70.63% in the last four quarters. The Zacks Consensus Estimate for KTOS’ 2025 sales is pinned at $1.28 billion, which indicates year-over-year growth of 12.2%.Leonardo DRS delivered an average earnings surprise of 22.27% in the last four quarters. The Zacks Consensus Estimate for DRS’ 2025 sales is pinned at $3.43 billion, which indicates year-over-year growth of 7.4%.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AAR Corp. (AIR): Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report Mercury Systems Inc (MRCY): Free Stock Analysis Report Leonardo DRS, Inc. (DRS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks