3 Top Aerospace Stocks to Buy in May
The aerospace sector is an excellent place to invest in 2022, and for those looking to open positions, few options look more appealing to me than aerospace and defense giant Raytheon Technologies (NYSE: RTX), advanced composites company Hexcel (NYSE: HXL), and aviation services company AAR Corp. (NYSE: AIR). Not only have they been significant outperformers so far this year, but their earnings momentum is improving. As such, investors have good reasons to continue to be optimistic.
The long-term case for Raytheon is excellent. Its commercial aerospace businesses -- largely Pratt & Whitney aircraft engines and Collins Aerospace -- are poised to benefit from a multiyear recovery in commercial aviation. Management forecasts that those two business units will drive a marginal profit increase at Raytheon in 2022 of up to $1.4 billion. While there are some risks to the outlook in 2022 -- not the least of which are supply chain issues and the difficulty of replacing components and materials sourced from Russia -- the long-term outlook remains positive. Boeing and Airbus are actively looking to ramp up their aircraft production in response to demand. In addition, its aftermarket revenue is growing.
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Source Fool.com
