11 Best Aerospace and Defense Stocks to Buy Right Now

1. GE Aerospace (NYSE:GE)

Number of Hedge Fund Holders: 95

GE Aerospace (NYSE:GE), is a prominent player in the aerospace industry. It focuses on manufacturing jet engines and propulsion systems for various types of aircraft, including commercial airliners, military jets, and private planes. It serves industry giants including Boeing and Airbus, while also serving the United States military.

It is one of the best aerospace and defense stocks to buy right now. The company in its March investor presentation laid out an optimistic and highly profitable outlook for the next three years. Management believes as the global travel and demand for airplanes is normalizing its products and services will be in business throughout the globe. Over the next three years, the company aims for high-single-digit sales growth, suggesting a steady increase in revenue by about 7% to 9% annually. Moreover, it also projects pre-tax earnings of $10 billion or more annually. This reflects a significant increase from earlier projections and indicates strong demand and operational efficiency.

GE Aerospace (NYSE:GE) generated $9.8 billion in revenue, indicating a 6% improvement year-over-year. Its GAAP profit came in at $1.9 billion indicating an even better year-over-year growth rate of 14%. The company also improved its total orders by 28% to reach $12.6 billion in total secured orders indicating that demand for its products remains robust. CEO H. Lawrence Culp, Jr. attributed the growth to strong demand for services, which led to increased earnings and cash flow. He noted improvements in engine deliveries and expansion of aftermarket capacity, which are crucial for sustaining growth.

While we acknowledge the potential of GE Aerospace (NYSE:GE) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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