EXCLUSIVE: Jay Woods Names ‘Stock to Watch in 2027’ Amid Potential Democratic Big Tech Breakups
Market expert Jay Woods makes a pick for the top stock to watch in 2027 based on the 2026 midterm elections.
Follow the latest GE Aerospace (GE) news and market headlines alongside the live GE price. Stay informed on what's moving GE.
Market expert Jay Woods makes a pick for the top stock to watch in 2027 based on the 2026 midterm elections.
The article compares two aerospace and defense ETFs: ITA (iShares U.S. Aerospace & Defense ETF) and ARKX (ARK Space & Defense Innovation ETF). ITA offers lower fees (0.37% vs 0.75%), better 5-year returns ($2,117 vs $1,440 on $1,000 invested), and lower volatility, while ARKX provides active management with higher 3-year returns but greater risk. The analysis recommends ITA for investors seeking stability and longer-term performance.
GE Aerospace shares have gained 12.7% over the past year, outperforming the S&P 500 and its industry peers. The company benefits from strong demand for its LEAP, GEnx, and GE9X engines, with Commercial Engines & Services revenues rising 21% and orders jumping 58% year-over-year in Q3 2026. GE plans major investments in manufacturing and MRO capabilities, while 2026 and 2027 earnings estimates have risen 2.8%. Despite trading at a premium valuation of 37.50X forward P/E, analysts maintain a Buy rating citing persistent strength in commercial and defense aerospace markets.
Four major aerospace-defense contractors—GE Aerospace, Howmet Aerospace, RTX Corp, and Lockheed Martin—have raised their 2026 financial guidance, driven by strong commercial aerospace demand, record defense backlogs, and increased U.S. military spending proposals. All four stocks carry favorable Zacks Rank ratings (#1 or #2), supported by robust order books and multiyear defense contracts.
The article highlights five aerospace companies that generate substantial recurring revenue from aftermarket services and parts, which can last decades. GE Aerospace benefits from its dominant LEAP engine position with a growing installed base. TransDigm and Loar Holdings use acquisition-driven strategies to control niche aerospace components. AAR Corp provides maintenance and repair services. RTX generates long-term aftermarket revenue from its Pratt & Whitney engine installed base. These companies offer stable, profitable business models beyond new aircraft sales.
GE Aerospace has attracted significant investor interest, with shares returning +9.8% over the past month, outperforming the S&P 500's -3.7% decline. The company demonstrates strong fundamentals with earnings expected to grow 27.6% year-over-year and revenue projected to increase 19.7%. GE has consistently beaten consensus estimates over the trailing four quarters and holds a Zacks Rank #2 (Buy) rating, though it trades at a premium valuation relative to peers.
3M Company achieved solid Q3 2026 results with adjusted operating income rising 8.9% to $1.73 billion and operating margin expanding to 26.2%. Revenue grew 1% year-over-year to $6.6 billion, driven by strength in industrial, safety, semiconductor, and data center markets. The company expects 2026 EPS of $9.10-$9.15 with organic sales growth above 3.5% and an operating margin of 24.6%. Peer GE Aerospace saw margin contraction while Honeywell Technologies showed significant margin improvement.
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