We recently published a list of the 11 Most Promising Long-Term Stocks According to Analysts. In this article, we are going to take a look at where FTAI Aviation Ltd. (NASDAQ:FTAI) stands against other promising long-term stocks.
On March 31, Banrion’s Shana Sissel recently appeared on CNBC’s ‘Power Lunch’ to discuss that buying at lower valuations is favorable for long-term investors. Shana Sissel highlighted that the markets now want transparency, given the persistent volatility that has lasted for a while now. When this clarity is lacking, it becomes difficult for investors and businesses to plan for the long term. This uncertainty has led to soft consumer and CEO confidence, which makes it challenging to develop long-term strategies when key aspects such as industrial policy, business policy, and taxes remain unresolved in the US. Sissel emphasized that until there is more certainty, volatility is likely to persist. She expressed skepticism that any immediate announcements would provide the level of information investors desire, especially because of the administration’s habit of making statements that are later contradicted or revised. However, Sissel pointed out that long-term investors can find attractive buying opportunities if they look beyond the current uncertainty. She noted that the recent drop in valuations for many tech stocks now presents favorable buying opportunities for long-term investors.
Regardless of the short-term fluctuations in policy uncertainty, many tech and security companies still benefit from long-term demand due to trends like the ongoing adoption of AI and the growing need for cybersecurity and infrastructure protection. Even when government decisions are unclear, these sectors are resilient because their products and services address fundamental needs that are unlikely to change with fluctuating market cycles.
Our Methodology
We first sifted through the Finviz stock screener and financial media reports to compile a list of the top stocks with high upside potential of over 40%. We then selected 11 stocks with a 10-year revenue compound annual growth rate of over 20%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Note: All data was sourced on April 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A team of airline employees surrounded by flight deck controls, with a variety of aircraft outside.
FTAI Aviation Ltd. (NASDAQ:FTAI)
10-Year Revenue CAGR: 40.49%
Number of Hedge Fund Holders: 54
Average Upside Potential as of April 21: 96.24%
FTAI Aviation Ltd. (NASDAQ:FTAI) owns, acquires, and sells aviation equipment for transporting goods and people. It operates in two segments: Aviation Leasing and Aerospace Products. It also engages in the offshore energy business, which consists of vessels and equipment that support offshore oil and gas activities and production.
In Q4 2024, the company’s Aerospace Products made $117.3 million in adjusted EBITDA at an overall EBITDA margin of 34%. This was a sequential increase of 15% and a year-over-year jump of 115%. The company is focused on ramping up production at its facilities in Montréal and Miami, as well as commencing operations at its new maintenance facility in Rome.
FTAI Aviation Ltd. (NASDAQ:FTAI) anticipates EBITDA to be between $600 and $650 million in 2025. The company’s maintenance approach is centered on green time optimization and using a large owned engine fleet, and allows it to offer lower fixed prices and minimal downtime to small and medium-sized airlines operating CFM56 and V2500 engines, within a large addressable market.
Tourlite Capital Management noted the company’s over 200% stock increase in 2024 and stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q4 2024 investor letter:
“FTAI Aviation Ltd. (NASDAQ:FTAI) emerged as one of the top-performing stocks in 2024, with its share price increasing over 200%. This performance was driven by robust aerospace after-market tailwinds and the growing market share of its PMA parts business, as the company consistently exceeded market expectations quarter after quarter.
The fourth quarter brought significant developments for FTAI, despite a share price retracement in the last five weeks of the year. In November, the company announced FAA approval for its second PMA engine part. In late December, FTAI announced a Strategic Capital Initiative (SCI) with private credit investors to acquire mid-life aircraft, tapping into a potential $30 billion market as aircraft lessors offload older planes as they make new purchases. Under this arrangement, FTAI secures the rights for the engine maintenance contracts, which are projected to generate ~$200 million in incremental annual aerospace EBITDA by 2026 when fully ramped.
When we analyze the SCI and factor in the multiple revenue streams (management fee, incentive fee and maintenance revenue), we believe the return on invested capital will be 80%+. We calculate a combined ~$2.50 per share of earnings from SCI. If the first SCI deal is successful, FTAI could raise one of these 7-year funds a year…” (Click here to read the full text)
Overall, FTAI ranks 2nd on our list of the 11 most promising long-term stocks according to analysts. While we acknowledge the potential of FTAI as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FTAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.