AAR Corp (AIR), a key player in the Aerospace & Defense industry, presents a potential buying opportunity amidst the current market surge. Despite a challenging year with a net income loss from continuing operations of $1.9B, the company has shown resilience with a net income applicable to common shares of $90.2M. AAR Corp's enterprise value revenue stands at 1.0977, indicating a reasonable valuation. The company's risk-adjusted performance is 0.0874, reflecting a relatively stable investment. The stock's potential upside of 2.37, coupled with a maximum drawdown of 12.62, suggests a favorable risk-reward ratio. The company's short ratio of 2.39 and short percent of 0.0382 indicate a low level of short interest, which could be a positive sign. Furthermore, the company's quarterly revenue growth of 0.089 and operating income of $133.9M demonstrate its operational efficiency. Given these factors, AAR Corp could be a promising addition to your portfolio. AAR Corp is set to release its earnings report today, with the subsequent financial statement expected on July 16, 2024. Given the growing interest from retail investors in the aerospace and defense sector, it's pertinent to evaluate AAR Corp's prospects under current economic conditions. This article will explore why retail investors have overlooked this company since the onset of the recent economic scenario.
AAR Corp, with a performance score of 5 out of 100, demonstrates a low market volatility, indicated by its Beta of 0.0295. This suggests minimal fluctuations relative to the market. When the market rises, AAR Corp's returns are likely to increase, but at a slower pace. Conversely, in a bear market, losses from holding AAR Corp are expected to be less severe. Currently, AAR Corp presents a risk factor of 1.45%. It's crucial to validate AAR Corp's maximum drawdown and the correlation between the expected shortfall and the day median price. This information will help determine if AAR Corp is likely to follow its typical price patterns.
Top Findings
As an aerospace and defense industry player, AAR Corp (USA Stocks:AIR) presents an attractive investment opportunity, especially considering its promising Jensen Alpha of 0.2029 and a Potential Upside of 2.37%. These indicators suggest that the stock is poised to outperform the market, potentially providing a higher return on investment. Despite a maximum drawdown of 12.62%, the company's resilience is demonstrated by its 200 Day Moving Average of $63.00, indicating a stable performance over a longer-term period. Investors seeking to diversify their portfolio within the aerospace and defense sector should consider capitalizing on this potential buying opportunity.AAR Corp
financial leverage refers to using borrowed capital as a funding source to finance AAR Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AAR Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AAR Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AAR Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between AAR Corp's total debt and its cash.
Is AAR a risky opportunity?
Let's check the volatility. AAR is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind AAR (USA Stocks:AIR) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of an AAR Corp stock makes you a part-owner of that company.
AAR Corp Current Consensus
Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering AAR Corp. The AAR consensus assessment is calculated by taking the average estimates from all of the analysts covering AAR Corp.
| Strong Buy | 5 | 83.33 |
| Buy | 1 | 16.67 |
| Hold | 0 | 0.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
As the saying goes, 'buy low, sell high', AAR Corp (AIR) seems to be presenting a potential buying opportunity amidst the current market surge. Despite the market's volatility, the company's strong fundamentals, such as a healthy current ratio of 2.89X and a low debt to equity ratio of 0.16%, indicate a robust financial position. With a market capitalization of $2.55B and a positive net income of $89.8M, the company's financial health appears stable. Furthermore, the company's shares are primarily owned by institutions, accounting for 94.05% of the total shares, which often signifies confidence in the company's future prospects. Therefore, considering these factors, AAR Corp (AIR) could be an attractive investment opportunity.
AAR Corp has a small chance to finish above $73 in 2 months
AAR Corp, a prominent player in the aviation services sector, currently offers a modest potential upside of 2.37, indicating a slight chance of the stock surpassing the $73 mark in the next two months. However, investors should tread carefully as the scope for significant gains seems limited. It's vital to keep a close eye on market trends and the company's performance to make informed investment decisions. As of May 16, 2024, AAR Corp's technical analysis, which includes a Semi Deviation of 1.36, mean deviation of 1.17, and Coefficient Of Variation of 785.43, provides a method to use historical prices and volume patterns to predict future prices. We've analyzed data for 19 technical drivers for AAR Corp, which can be compared to its peers. Please verify AAR Corp's standard deviation, maximum drawdown, and the relationship between the Maximum Drawdown and expected short fall to determine if the current market price of $71.95 per share is fair.
With a Jensen Alpha of 0.2029, it's recommended to assess AAR Corp's current market performance to ensure its future sustainability.Despite the recent slump of AAR Corp (USA Stocks:AIR), it is important to consider the potential for growth. With a valuation real value at
$68.69 and a naive expected forecast value of
$70.66, the stock exhibits promising potential for appreciation. The possible upside price of $72.11 further emphasizes this potential. Moreover, with 5 strong buy recommendations from analysts, there is a strong consensus that AAR Corp is a valuable investment. However, investors should also consider the possible downside price of $69.21. In conclusion, despite the recent slump, AAR Corp's stock presents an attractive investment opportunity based on its potential for growth and strong buy recommendations from analysts..
Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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