12 Best Multibagger Stocks to Buy Right Now

9) FTAI Aviation Ltd. (NASDAQ:FTAI)

Number of Hedge Fund Holders: 41

One-year Return: ~179%

Average Upside Potential: ~38.3%

Market Cap as of 30^th December: $13.7 billion

FTAI Aviation Ltd. (NASDAQ:FTAI) primarily focuses on the acquisition and leasing of aircraft, aircraft engines, and related equipment.

FTAI Aviation Ltd. (NASDAQ:FTAI)’s growth trajectory over the past year stemmed from supply chain disruptions and engine durability issues from major manufacturers, leading to shortages in the aviation sector. FTAI Aviation Ltd. (NASDAQ:FTAI)’s integrated approach to jet-engine leasing and repair has placed it well in addressing these shortages, enhancing its market value. Furthermore, FTAI Aviation Ltd. (NASDAQ:FTAI) entered into a 5-year maintenance service agreement with International Aero Engines AG (IAE) for V2500 engines, covering more than 100 full-performance restoration shop visits.

Why has this agreement fueled investors’ optimism? Well, this agreement solidifies the company’s position in the V2500 engine market and enhances future revenue visibility. With more than 100 full-performance restoration shop visits covered under this agreement, FTAI Aviation Ltd. (NASDAQ:FTAI) can assume consistent revenue and improved capacity utilization in its engine maintenance segment.

As the V2500 engine is being widely used in narrowbody aircraft, this partnership is expected to lead to additional contracts and market share gains in the future.

ClearBridge Investments sees a material upside to the stock on the back of meaningful revenue and earnings growth potential. Here’s what the firm said in its Q3 2024 letter:

“We are encouraged by the high proportion of positive returns on new ideas added over the last five quarters of elevated new idea generation, with solid contributions to overall performance despite their representing a modest portion of the Strategy’s assets.

We continued to deliver strong new idea generation, adding four new investments in the quarter: OneStream (through participating in its IPO), Abercombie & Fitch, Wintrust Financial, and FTAI Aviation Ltd. (NASDAQ:FTAI).

FTAI Aviation is an aerospace company that offers both engine and aircraft leasing services, as well as an aftermarket for engine products and services. With a focus on several widely used and aging engine platforms, the company’s differentiated modular approach to aftermarket products, along with the unique assets from its leasing business, offers meaningful revenue and earnings growth potential.”