This fund manager picked four industrial winners a year ago. Here are his latest picks.

Written by Emily J. Thompson, Senior Investment Analyst

AIR+0.64%

KTOS-5.59%

CVX-0.04%

Source: MarketWatch

Updated: Jul 15 2025

0mins

Source: MarketWatch

Industrial Sector Growth: Analysts predict the industrial sector of the S&P 500 will experience the highest revenue and profit growth from 2024 to 2027, as highlighted in a previous article last July.
Stock Performance Update: The article revisits four stock picks from last year, featuring insights from Spenser Lerner and Bill Hench, who provided updates on their selections during recent interviews with MarketWatch.

AIR

$107.74+Infinity%1D

Analyst Views on AIR

Wall Street analysts forecast AIR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIR is 101.25 USD with a low forecast of 93.00 USD and a high forecast of 107.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Analyst Rating

5 Buy

0 Hold

0 Sell

Strong Buy

Current: 107.060

Low

93.00

Averages

101.25

High

107.00

Current: 107.060

Low

93.00

Averages

101.25

High

107.00

Truist

Michael Ciarmoli

Buy

maintain

$99 -> $107

2026-01-09

Reason

Truist

Michael Ciarmoli

Price Target

$99 -> $107

AI Analysis

2026-01-09

maintain

Buy

Reason

Truist analyst Michael Ciarmoli raised the firm's price target on AAR Corp. to $107 from $99 and keeps a Buy rating on the shares. Despite a strong 2025, the Aerospace & Defense sector remains broadly bullish for 2026, with rising aircraft production and sustained aftermarket demand supporting both OE and AM segments, the analyst tells investors in a research note. Defense may see fewer catalysts, but recapitalization, geopolitical tensions, and replenishment needs should sustain demand, making stock selection critical amid elevated valuations, particularly for SMID defense tech names, the firm adds.

Truist

Buy

maintain

$90 -> $99

2026-01-07

Reason

Truist

Price Target

$90 -> $99

2026-01-07

maintain

Buy

Reason

Truist raised the firm's price target on AAR Corp. to $99 from $90 and keeps a Buy rating on the shares. Results exceeded expectations on organic growth and recent acquisitions, though free cash flow fell short, and management raised FY26 organic revenue growth to 11% from 10%, the analyst tells investors in a research note. While the Q3 revenue outlook is above Street, adjusted operating margins are expected to remain somewhat depressed near-term due to HAECO acquisition dilution, with margin improvement hinging on synergies and cost reductions, and strong part sales supporting top-line momentum, the firm says.

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RBC Capital

Outperform

maintain

$90 -> $105

2026-01-07

Reason

RBC Capital

Price Target

$90 -> $105

2026-01-07

maintain

Outperform

Reason

RBC Capital raised the firm's price target on AAR Corp. to $105 from $90 and keeps an Outperform rating on the shares. AAR reported strong fiscal Q2 results, with total sales growth of 16% and strong industry fundamentals, the analyst tells investors in a research note. The margin set up remains "encouraging" into fiscal 2027, the firm adds.

Jefferies

NULL -> Buy

initiated

$100

2025-12-17

Reason

Jefferies

Price Target

$100

2025-12-17

initiated

NULL -> Buy

Reason

Jefferies initiated coverage of AAR Corp. with a Buy rating and $100 price target. Since 2023, AAR's five deals have transformed it into having a full-service aviation aftermarket portfolio, enabled by an intellectual property stack and recurring software solutions, the analyst tells investors. The diversification into predictable, higher-margin channels "gives credibility" to the firm's estimate 11% growth compound annual growth rate to 2028, the analyst added.

About AIR

AAR Corp. is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. The Company’s Parts Supply segment consists of its sales of used serviceable engine and airframe parts and components and distribution of new parts. The Repair & Engineering segment consists of its maintenance, repair, and overhaul (MRO) services across airframes and components. The Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the United States (U.S.) Department of Defense, U.S. Department of State, and foreign governments, flight hour component inventory and repair programs for commercial airlines, and integrated software solutions, including Trax. The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and non-governmental organizations.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.