10 Defense and Aerospace Stocks To Benefit From Trump’s Peace Through Strength Policy

6. GE Aerospace (NYSE:GE)

GE Aerospace develops defense and commercial aircraft engines, electric power, integrated engine components, and mechanical aircraft systems. The company also provides aftermarket services. A 21% YTD return has allowed the stock to touch 52-week highs as all the growth engines continue to perform strongly despite minor hiccups.

GE Aerospace released its Q4 earnings last month and a 46.6% order growth together with a 16% organic growth was the best performance by the company since Q2 2023. The company’s growth is being driven by two factors.

First, the investments in the LEAP program are likely to keep bringing benefits. The LEAP program aims to develop fuel-efficient aircraft engines. Airbus and Boeing continue to rely on GE Aerospace’s LEAP engines for some of their aircraft. The LEAP 10A durability kit was certified by the US and EU aviation regulatory authorities in December, so everything seems to be on track.

Second, the company’s Flight Deck program helps it address any supply chain issues as soon as they arise. In Q4, the company improved its output by 19% according to the management, based primarily on improvements through the Flight Deck program.

On top of these two factors, the company continues to expand its aftermarket capabilities, aiming to generate higher revenue from these services in the next five years. This sets up the company well as a growth investment going forward.