Why You Should Buy Aerospace Stocks on Weakness in 2021
The aerospace sector finds itself going into a highly unusual period as it enters 2021. On the one hand, investors in the industry should definitely brace themselves for some near-term weakness. On the other, any overly negative reaction to the news flow and earnings reports in the coming months should be regarded as a potential buying opportunity in the higher quality names like Raytheon Technologies (NYSE: RTX) or Honeywell (NYSE: HON). Here's why.
There's no way to sugarcoat this. The recovery in commercial aviation has been weaker than most industry observers hoped and predicted it would be in 2020. For example, the International Air Transport Association (IATA) has progressively increased its estimates for worldwide airline losses for 2020 and 2021 as the current year has progressed.
Worldwide Airlines Net Loss
Source Fool.com
