The Zacks Analyst Blog Highlights GE Aerospace, RTX and Howmet Aerospace

For Immediate ReleaseChicago, IL – July 16, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: GE Aerospace GE, RTX Corp. RTX and Howmet Aerospace Inc. HWM.Here are highlights from Tuesday’s Analyst Blog:Should GE Aerospace (GE) Be in Your Portfolio Pre-Q2 Earnings?GE Aerospace is scheduled to release second-quarter 2025 results on July 17, before the market opens. The Zacks Consensus Estimate for earnings is currently pegged at $1.43 per share on revenues of $9.7 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)GE's second-quarter earnings estimates have increased a penny over the past seven days. The bottom-line projection indicates an increase of 19.2% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates year-over-year growth of 17.9%.Earnings Surprise HistoryGE Aerospace has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18%. In the last reported quarter, it delivered an earnings surprise of 18.3%.Earnings Whispers for GEOur proven model predicts an earnings beat for GE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.GE has an Earnings ESP of +4.94% and sports a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.What's Likely to Shape GE Aerospace's Q2 Results?The growing installed base and the higher utilization of engine platforms across commercial and defense end markets are expected to have benefited GE Aerospace in the second quarter. Solid demand for LEAP, GEnx & GE9X engines and related services, supported by growth in air traffic, fleet renewal and expansion activities, is likely to have benefited the Commercial Engines & Services business. The consensus estimate for the segment's second-quarter revenues is pinned at $7.43 billion, indicating 6.5% growth on a sequential basis.The Defense & Propulsion Technologies business is anticipated to have performed well, backed by the growing popularity of the company's propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector. Rising U.S. & international defense budgets, positive airline & airframer dynamics and robust demand for commercial air travel are anticipated to have boosted the segment's performance in the second quarter. The consensus mark for the segment's revenues is pegged at $2.57 billion, indicating a 10.5% increase sequentially.GE has been making investments to expand and upgrade manufacturing facilities in the United States and overseas. These investments are likely to have enabled the company to boost its operational capacities and cater to the increased demand from its commercial and defense customers. This, along with its focus on operational execution, robust backlog level and aim to generate healthy free cash flow, is likely to have bolstered its second-quarter performance.The company's portfolio reshaping actions include disposing non-profitable businesses to unlock value for its shareholders. In April 2024, GE completed the spin-off of its Vernova business, which marked the completion of its multi-year portfolio restructuring actions. The transaction allowed GE to achieve better operational focus on its core aerospace business and financial flexibility. This is expected to have driven its margins and profitability in the to-be-reported quarter.However, high costs and operating expenses owing to certain projects and restructuring activities are likely to have weighed on the company's performance. Also, supply-chain challenges, such as the availability of raw materials and labor shortages, especially in the aerospace and defense markets, are likely to have been a spoilsport.GE's Price PerformanceGE Aerospace's shares have surged 43.8% in the past three months compared with the Zacks Aerospace - Defense industry's 21.3% growth. The company's shares have also fared comparatively better than the S&P 500's increase of 18.6%. Its peers, RTX Corp. and Howmet Aerospace Inc., have gained 15.5% and 48.7%, respectively, over the same period.GE Aerospace's Valuation Remains an OverhangGE is trading at a forward 12-month price-to-earnings (P/E) ratio of 43.47X, higher than the industry average of 27.51X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. In comparison with GE's valuation, RTX Corp. is trading cheaper, while Howmet Aerospace has a lofty valuation. Notably, RTX Corp. and Howmet Aerospace are currently trading at 23.55X and 48.11X, respectively.Investment ThesisGE Aerospace's robust and diversified portfolio, encompassing commercial engines, propulsion and additive technologies, along with the strength in the aerospace and defense markets, is likely to drive its performance. For 2025, GE expects organic revenues to grow in the low-double-digit range from the year-ago level.We are also optimistic about its portfolio-reshaping actions, which are expected to reduce its operational costs and improve margins and cash flow in the long term. To add to its strengths, GE continues to reward shareholders with substantial dividends and share repurchases, supported by a strong cash flow and operational excellence.How Should You Play GE Aerospace Pre-Q2 Earnings?GE Aerospace's solid foothold and persistent strength in the aerospace and defense markets, driven by solid build rates, wide-body aircraft recovery and robust defense budget, bode well for growth. Given the strength in most of its served markets, the company has built a sound liquidity position that supports its shareholder-friendly policies.Despite its expensive valuation, given the positive analyst sentiment and its growth prospects, the time appears right for potential investors to bet on this company.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpMedia ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks