10 Undervalued Aerospace Stocks To Buy According to Analysts

2. V2X, Inc. (NYSE:VVX)

Average Price Target Upside as of August 15: 29.21%

Forward P/E as of August 15: 11.7

V2X, Inc. (NYSE:VVX) provides essential mission solutions and support services for government defense agencies around the world. It operates through four main business segments namely, Operations and Logistics, Aerospace, Training, and Technology. V2X, Inc. (NYSE:VVX) provides various base management services to the Air Education Training Command in the US. It also provides life cycle support for advanced aircraft such as the F/A 18 and V22 Osprey. The company serves national security agencies and commercial clients in the international market.

The second quarter of 2024 was a success for V2X, Inc. (NYSE:VVX). The company increased its revenue by 10% year-over-year to generate $1.07 billion during the quarter. It also landed awards worth more than $4 billion including a $265 million award to support NASA’s operations in preparation for human spaceflight missions, and a $747 million Adversarial Aircraft program to support the advancement of US Navy pilots. Moreover, the company will also be spearheading the next-generation readiness award valued at more than $3 billion.

In addition to a strong performance in the top line, the company was also able to generate an adjusted EBITDA of $72.3 million and an adjusted earnings per share of $0.83 during the quarter. The strong market demand for V2X, Inc. (NYSE:VVX) products and services can be gauged by its strong backlog of $12.2 billion representing approximately 3x revenue at the midpoint of guidance.

Management has also raised its full-year guidance with revenue at $4.175 billion to $4.275 billion (the previous range was $4.1 billion to $4.2 billion) and reaffirmed its adjusted EBITDA guidance of $300 million to $315 million. Lastly, V2X, Inc. (NYSE:VVX) has around $72 million in cash and cash equivalents, indicating significant room for short-term investments.

VVX is cheap at current levels. It is trading at 11.7 times its forward earnings, a 37% discount to its sector. Moreover, its earnings are also expected to grow from  -$0.01 to $0.54 during the year. 6 analysts have a strong buy rating on the stock, with their median price target of $61 presenting an upside of 29.21% from current levels.