AAR Corp. (AIR) Hit a 52 Week High, Can the Run Continue?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 21, 2026, AAR reported EPS of $1.53 versus consensus estimate of $1.41.

For the current fiscal year, AAR is expected to post earnings of $5.92 per share on $3.69 in revenues. This represents a 17.23% change in EPS on a 11.61% change in revenues. For the next fiscal year, the company is expected to earn $6.52 per share on $3.99 in revenues. This represents a year-over-year change of 10.14% and 7.99%, respectively.

Valuation Metrics

Though AAR has recently hit a 52-week high, what is next for AAR? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

AAR has a Value Score of C. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 24.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 36.2X. On a trailing cash flow basis, the stock currently trades at 21.6X versus its peer group's average of 32X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, AAR currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if AAR fits the bill. Thus, it seems as though AAR shares could still be poised for more gains ahead.

How Does AIR Stack Up to the Competition?

Shares of AIR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Moog Inc. (MOG.A). MOG.A has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.

Earnings were strong last quarter. Moog Inc. beat our consensus estimate by 39.33%, and for the current fiscal year, MOG.A is expected to post earnings of $11.80 per share on revenue of $4.35 billion.

Shares of Moog Inc. have gained 0.7% over the past month, and currently trade at a forward P/E of 36.68X and a P/CF of 33.83X.

The Aerospace - Defense Equipment industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AIR and MOG.A, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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