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13 Best Aerospace Stocks To Buy On Sale

In this article, we discuss the 13 best aerospace stocks to buy on sale. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Aerospace Stocks To Buy On Sale

Travel demand around the world has started surprising pre-pandemic levels, leading to an increase in demand for aircrafts that has benefited aerospace stocks. Geopolitical upheavals in Europe and the Middle East have also served to boost the aerospace industry as countries look to bolster their defense arsenals. These trends, observed over the past few months, are likely to continue into 2024, providing a tailwind for aerospace stocks like The Boeing Company (NYSE:BA), RTX Corporation (NYSE:RTX), and Lockheed Martin Corporation (NYSE:LMT) that are presently trading at discounted prices. 

According to a report by research firm Deloitte, aerospace companies will face challenges such as supply chain issues, longer lead times, and a talent shortage as the demand outlook for the industry improves. Digital transformation as a whole, and the integration of artificial intelligence into products in particular for enhanced productivity, real-time data synchronization, and simplified customization processes will also be a key trend shaping the industry moving forward. Consulting firm PwC estimates that the aerospace and defense sector generated revenues of more than $741 billion in 2022, up from $714 billion in 2021.

Even though this represents a 3% increase in revenue year-on-year, a closer look at the number reveals that the operating margins for the industry increased by 8% during this time. Despite higher demand, the revenues for the top six defense contractors in 2022 were down by 3%, largely due to the supply chain issues and labor constraints. Investors should also closely monitor the development of sustainable propulsion technologies in the aerospace sector as the industry focuses on reducing carbon emissions. Leading defense contractors in the United States are likely to be at the forefront of this endeavor. 

Dave Calhoun, the CEO of The Boeing Company (NYSE:BA), recently said during the third quarter earnings call that his company is focused on improving operating margins in the aerospace and defense sector. He added that engineering changes were a key part of this process which would support better installations. The CEO also noted that the firm would hold important supplier negotiations over the course of the next few months. However, he stressed that none of these changes would impact the overall performance of the company and the capability to deliver end products. 

“In defense and space, we still have more work to improve operating performance. Results this quarter were impacted by higher estimated costs on the VC-25B program. We are maturing through this build process, incorporating engineering changes to better support the installation process, and we resolved important supplier negotiations over the course of the quarter. I’ll note that none of these items will impact the performance and capability of the end product.

The increased estimates reflect the process by which we build the airplanes. And in a fixed-priced environment, any unplanned hurdles can introduce unrecoverable costs. At the end of the day, we have two airplanes to build. We’re getting past these hurdles and are committed to delivering two exceptional airplanes for our customers.

Separately, as you saw, we are also expecting higher costs on a satellite program as we build out the constellation and meet our light cycle commitments for our customer. We’re working on real innovation and advanced capabilities in this space and see real potential market as we deliver against this commitment. More broadly, across BDS, we’re stabilizing operations and taking comprehensive actions to improve performance, including lean initiatives, contracting disciplines, factory improvements, engineering investments, and more. We’re seeing some early signs of progress, but financial improvement at BDS’ lower volumes takes time.” 

Our Methodology

Aerospace stocks that have registered a decrease of 4% or more in share price over the past month were selected and ranked according to hedge fund sentiment. It is important to clarify that since the average PE Ratio for the aerospace industry is high, share price decline was used as a classifier instead. The stocks mentioned below are trading at discounted prices but have long-term growth potential. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2023 was used to identify the number of hedge funds that hold stakes in each company. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

A satellite in orbit, capturing the technological prowess of the aerospace & defense company.

Best Aerospace Stocks To Buy On Sale

13. Spire Global, Inc. (NYSE:SPIR)

Number of Hedge Fund Holders: 5  

Decline in Share Price Over Past Month as of January 23: 4.1%

Spire Global, Inc. (NYSE:SPIR) operates from Virgina and markets space-to-cloud data and analytics. It focuses on the tracking of global datasets accumulated from a nanosatellite constellation. On November 9, investment advisory Stifel maintained a Buy rating on Spire Global, Inc. (NYSE:SPIR) stock and lowered the price target to $24 from $26.

At the end of the third quarter of 2023, 5 hedge funds in the database of Insider Monkey held stakes worth $1.2 million in Spire Global, Inc. (NYSE:SPIR), compared to 11 the preceding quarter worth $3.5 million.

Just like Boeing Company (NYSE:BA), RTX Corporation (NYSE:RTX), and Lockheed Martin Corporation (NYSE:LMT), Spire Global, Inc. (NYSE:SPIR) is one of the best aerospace stocks to buy on sale. 

12. EHang Holdings Limited (NASDAQ:EH)

Number of Hedge Fund Holders: 6  

Decline in Share Price Over Past Month as of January 23: 31.4% 

EHang Holdings Limited (NASDAQ:EH) operates as an autonomous aerial vehicle (AAV) technology platform company. In late November, EHang Holdings Limited (NASDAQ:EH) posted earnings for the third quarter of 2023, reporting a revenue of $3.9 million, up more than 247% compared to the revenue over the same period in the preceding year. 

At the end of the third quarter of 2023, 6 hedge funds in the database of Insider Monkey held stakes worth $2.5 million in EHang Holdings Limited (NASDAQ:EH), up from 4 the preceding quarter worth $1.8 million.

In its Q3 2023 investor letter, Deep Sail Capital, an asset management firm, highlighted a few stocks and EHang Holdings Limited (NASDAQ:EH) was one of them. Here is what the fund said:

“Our worst-performing short position was EHang Holdings Limited (NASDAQ:EH), which saw significant upside from EVtol excitement and exhibited squeeze dynamics in the quarter. We seek to avoid these types of squeezes and are attempting to be nimbler in our short positioning at these levels.”

11. Virgin Galactic Holdings, Inc. (NYSE:SPCE)

Number of Hedge Fund Holders: 8

Decline in Share Price Over Past Month as of January 23: 22.6%

Virgin Galactic Holdings, Inc. (NYSE:SPCE) focuses on the development, manufacture, and operation of spaceships and related technologies for conducting commercial human spaceflight and flying commercial research and development payloads into space. At the end of the third quarter of 2023, 8 hedge funds in the database of Insider Monkey held stakes worth $6.3 million in Virgin Galactic Holdings, Inc. (NYSE:SPCE), compared to 14 in the preceding quarter worth $11 million. 

10. AST SpaceMobile, Inc. (NASDAQ:ASTS)

Number of Hedge Fund Holders: 9     

Decline in Share Price Over Past Month as of January 23: 49%

AST SpaceMobile, Inc. (NASDAQ:ASTS) markets space-based cellular broadband services and is headquartered in Texas. On November 21, investment advisory Deutsche Bank maintained a Buy rating on AST SpaceMobile, Inc. (NASDAQ:ASTS) stock and lowered the price target to $23 from $32.

At the end of the third quarter of 2023, 9 hedge funds in the database of Insider Monkey held stakes worth $9 million in AST SpaceMobile, Inc. (NASDAQ:ASTS), compared to 14 the preceding quarter worth $32 million.

9. Rocket Lab USA, Inc. (NASDAQ:RKLB)

Number of Hedge Fund Holders: 11

Decline in Share Price Over Past Month as of January 23: 10.7%

Rocket Lab USA, Inc. (NASDAQ:RKLB) is a space company that provides launch services and space systems solutions for the space and defense industries. On December 23, investment advisory Roth MKM maintained a Buy rating on Rocket Lab USA, Inc. (NASDAQ:RKLB) stock with a price target of $7.

At the end of the third quarter of 2023, 11 hedge funds in the database of Insider Monkey held stakes worth $41 million in Rocket Lab USA, Inc. (NASDAQ:RKLB), compared to 10 the preceding quarter worth $110 million.

8. CAE Inc. (NYSE:CAE)

Number of Hedge Fund Holders: 11     

Decline in Share Price Over Past Month as of January 23: 6.6%

CAE Inc. (NYSE:CAE) provides simulation training and critical operations support solutions. In mid-November, CAE Inc. (NYSE:CAE) posted earnings for the second fiscal quarter, reporting a revenue of more than C$1 billion, up close to 10% year-on-year. 

At the end of the third quarter of 2023, 11 hedge funds in the database of Insider Monkey held stakes worth $112 million in CAE Inc. (NYSE:CAE), compared to 13 the preceding quarter worth $134 million.

In its Q4 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and CAE Inc. (NYSE:CAE) was one of them. Here is what the fund said:

“Our largest sales were Tencent and CAE Inc. (NYSE:CAE). We took profits in Canadian aerospace and defense training provider CAE to fund better opportunities, as the post-COVID recovery in civil pilot training has already progressed well and earnings have recovered.”

7. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Number of Hedge Fund Holders: 11

Decline in Share Price Over Past Month as of January 23: 9.6%

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a California-based company that makes and sells space-related products and services. On November 3, investment advisory Baird maintained an Outperform rating on Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) stock and raised the price target to $22 from $17.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) with 6.2 million shares worth more than $94 million.

6. Embraer S.A. (NYSE:ERJ)

Number of Hedge Fund Holders: 14

Decline in Share Price Over Past Month as of January 23: 6.4% 

Embraer S.A. (NYSE:ERJ) designs, develops, manufactures, and sells aircraft and systems. In early December, Embraer S.A. (NYSE:ERJ) announced that it had won a contract to supply the military of South Korea with cargo planes. 

At the end of the third quarter of 2023, 14 hedge funds in the database of Insider Monkey held stakes worth $94 million in Embraer S.A. (NYSE:ERJ), the same as in the preceding quarter worth $114 million.

Along with Boeing Company (NYSE:BA), RTX Corporation (NYSE:RTX), and Lockheed Martin Corporation (NYSE:LMT), Embraer S.A. (NYSE:ERJ) is one of the best aerospace stocks to buy on sale. 

Click to continue reading and see 5 Best Aerospace Stocks To Buy On Sale.

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Disclosure. None. 13 Best Aerospace Stocks To Buy On Sale is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

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As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

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This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
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You simply won’t find another AI and energy stock this cheap… with this much upside.

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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…