Aerospace & Defense

4 Top Aerospace and Defense Stocks to Buy Now Before Q2 Earnings

The Baird analysts anticipate an earnings beat and an increase in forward guidance from Raytheon. They highlight that the improving aerospace aftermarket demand supports upside to the current outlook.

Shareholders receive a 2.36% dividend. The $100 Baird price objective is higher than the $98.59 consensus figure. Raytheon Technologies stock closed at $86.58.


This stock also has acted very well this year but still has solid upside potential. Textron Inc. (NYSE: TXT) operates in the aircraft, defense, industrial and finance businesses worldwide. Its Textron Aviation segment manufactures, sells and services business jets, turboprop and piston engine aircraft and military trainer and defense aircraft. It makes commercial parts, as well as offers maintenance, inspection and repair services. The company’s Bell segment supplies military and commercial helicopters, tiltrotor aircraft and related spare parts and services.

The Textron Systems segment offers unmanned aircraft systems, unmanned surface systems, mission command hardware and solutions and customer support and logistics services; simulation, training and other defense and aviation mission support products and services; airborne and ground-based sensors and surveillance systems and protection systems; precision-guided weapons systems; marine craft, armored vehicles and specialty vehicles used for fire and rescue applications; test equipment, electronic warfare test and training and intelligence software solutions; and piston aircraft engines. It also designs, develops, manufactures, installs and maintains full flight simulators.

Its Industrial segment offers blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, and plastic tanks for catalytic reduction systems primarily to automobile OEMs; and golf cars, off-road utility vehicles, recreational side-by-side and all-terrain vehicles, snowmobiles, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts and commercial and industrial users. The company’s Finance segment provides financing to purchase new and pre-owned aircraft and helicopters.

Baird sees the company beating the consensus forecast and raising guidance. The firm also sees better deliveries at the aviation unit and business jet orders picking up.

Investors receive just a 0.12% dividend. Baird has set a $72 price target. The consensus target is $76.14, and Textron stock closed at $68.66 a share.

These four top stocks to buy before earnings all make good sense for long-term growth portfolios. Given that they have been very solid in the past year, it may make sense to buy partial positions and see if we don’t get a seasonal pullback between August and October.

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