AAR Corp. (AIR) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been AAR (AIR). Shares have been marching higher, with the stock up 17.8% over the past month. The stock hit a new 52-week high of $137.2 in the previous session. AAR has gained 60.6% since the start of the year compared to the 2.9% gain for the Zacks Aerospace sector and the 10.9% return for the Zacks Aerospace - Defense Equipment industry.What's Driving the Outperformance?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 March 24, 2026, AAR reported EPS of $1.25 versus consensus estimate of $1.21.For the current fiscal year, AAR is expected to post earnings of $5.63 per share on $3.27 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $6.63 per share on $3.7 in revenues. This represents a year-over-year change of 13.15% and 12.93%, respectively.Valuation MetricsThough 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 is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors 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 B and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 23.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 38.1X. On a trailing cash flow basis, the stock currently trades at 24.3X versus its peer group's average of 33.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, AAR currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.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.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks