Are you looking for the next big investment opportunity in the aerospace sector? Look no further than GE Aerospace. According to Artisan Partners’ Chris Smith, GE is poised to triumph over ongoing manufacturing troubles plaguing Boeing.
What sets GE apart is their new leap engine, which is set to be featured on all new narrow-body planes. This engine could potentially account for over 80% of engines in the air over the next decade, making GE a dominant player in the industry.
In light of delivery delays resulting from Boeing’s 737 Max 9 door-plug blowout earlier this year, airlines are turning to older aircraft for service, creating a surge in demand for GE’s products. This uptick in demand is not only benefiting GE, but also aircraft components producer TransDigm.
Overall, aerospace and defense stocks have been on the rise in 2024, reaching new highs amid increasing global geopolitical tensions. The iShares U.S. Aerospace & Defense ETF (ITA) has seen a nearly 16% increase this year. GE shares have surged by 70% in 2024, while TransDigm has seen a 35% increase. Boeing, on the other hand, has struggled with a 34% decline in 2024, facing heightened scrutiny and reporting wider-than-expected losses in the second quarter.
Smith also points out that GE is positioned to benefit from the trend of reinvestments in U.S. manufacturing, as supply chains move closer to home after decades of heavy outsourcing. This shift has led to accelerated manufacturing construction in the U.S., presenting opportunities for companies like GE.
As an investor, it’s important to stay ahead of the curve and identify lucrative opportunities in fast-growing sectors like aerospace. GE Aerospace appears to be well-positioned for success in the coming years, making it a compelling investment option for those looking to diversify their portfolio and capitalize on industry trends. Stay connected with Extreme Investor Network for more exclusive insights and opportunities in the investing world.