Aerospace Stocks To Watch This Quarter
October was a tough month for most stocks, especially ones in the aerospace sector. Here are out editors picks for top aerospace stocks to watch for the next quarter.
Aerospace Stock To Watch: Boeing (NYSE: BA)
Boeing has a wide range of aircraft, from military aircraft to consumer planes. For most aerospace investors, Boeing stock is always on the “stocks to watch” list.
Over the last few years, Boeing share price has been stable, which is not so common for aerospace companies. Since the start of the year, Boeing shares have increased by 27%. The journey to now has been rocky, but it is clear to see that the trend is upwards.
The general consensus amongst analysts is that BA shares will continue to increase. Boeing’s commercial business is growing healthily in China and India’s middle class. Which will drive Boeing’s revenues.
Boeing is also growing in the defense sector, with its new T-X program we expect Boeing to gain significant market share with its new defense package. Boeing’s new package trains fighter pilots, which boosts all defense-related spending and defense stocks.
Aerospace Stocks To Watch: Textron (NYSE: TXT)
Textron stock price (NYSE: TXT) fell significantly after a poor earnings report, in Q2, Textron missed its top-and-bottom line estimates. In October, Textron share price dropped by over 25%.
TXT reported earnings per share at 61 cents, which is down from 65 cents per share which was seen in Q3, 2017. Year-over-year, Textron’s sales have dropped by 8% to $3.2 billion.
The decline in Textron share price gives it great buying potential. Textron’s defense products will have a place in the market for years to come, with their Bell helicopters being the company’s most vital product. The main reason that Textron stock is such an important aerospace stock to watch is that the company serves both business and civilian clients.
Aerospace Stocks to Watch: Aerojet Rocketdyne (NYSE: AJRD)
Aerojet Rocketdyne is a company that focuses on “space” more than “aero”, unlike our other aerospace stocks to watch. AJRD specializes on missile-propulsion systems and rockets. The only challenge that AJRD stock faces is that President Trump’s Space Force idea has been scrapped since the Republicans lost the House.
Aerojet Rocketdyne is revolutionizing the way that we look at space with their rocket capabilities. This provides great growth potential for AJRD stock.
The Trump administration is constantly looking for new defense and aerospace deals, which keeps defense/aerospace companies in good stead. It is likely to see the national budget defense spending increase as the president is without-a-doubt pro-military. For defense companies, this is great news as there will be a constant inflow of contracts for years to come.