1. AerSale Corporation (NASDAQ:ASLE)
Number of Hedge Fund Holders: 15
In the field of aircraft aftermarket goods and services, AerSale Corporation (NASDAQ:ASLE) is a diverse, comprehensive leader. The company offers a wide range of maintenance, repair, and overhaul services as well as engineering services for commercial aircraft and parts, and it specializes in the sale, leasing, and exchange of secondhand aircraft, engines, and parts. TechOps and Asset Management Solutions are part of the company’s operating segment. The Asset Management Solutions segment yields the highest revenue.
In AerSale Corporation (NASDAQ:ASLE)’s Q3 2024, the growth of the lease pool resulted in a considerable rise in leasing revenue, in line with strategy aims. Strong growth in the MRO business also contributed to the segment’s 18% year-over-year gain. While Engineered Solutions reported continued sales prospects for AerSafe and strong client interaction for AerAware, the TechOps division did well, with sales increasing 17.6% to $32.3 million. Financially, adjusted net income increased from $0.9 million to $1.8 million, while adjusted EBITDA improved from $1.9 million to $8.2 million in 2023 due to lower operating expenses and higher gross margins. Projects to expand MRO facilities in Millington and Miami are still on schedule for Q1 2025, which should increase profits.
Meanwhile, AerSale Corporation (NASDAQ:ASLE) is in talks with a number of potential customers, and the AerSafe backlog is anticipated to double by the 2026 regulatory deadline. The company appears to have learned that it needs to position itself to perform more regularly, which is a positive. Aircraft and engine sales cause profits to fluctuate every quarter and year. The firm is now working to lessen this impact by expanding its MRO presence, which is essential given the challenging position it is now in with AerAware. That product may eventually prove successful, but the company and its stockholders are waiting to see when the first signals of commercial success appear.
Overall, ASLE ranks first on our list of the 12 Best Airport Stocks to Invest in Now. While we acknowledge the potential for ASLE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ASLE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. 12 Best Airport Stocks to Invest in Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
