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AAR Corp. (AIR) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Industrials · Aerospace & Defense

Sell if holding. Momentum 3.2/10 is below the 5.0 floor at $100.89 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2); Sector modifier (Industrials): -0.7.

AAR Corp. is an independent aviation aftermarket provider offering parts supply (40% of sales), MRO services (32%), integrated fleet management (25%), and expeditionary services (3%) to commercial airlines and government customers. FY2025 consolidated sales were ~$2.78B, with... Read more

$100.89+13.5% A.UpsideScore 5.7/10#9 of 47 Aerospace & Defense
QualityF-score7 / 9FCF yield0.68%
Stop $96.63Target $114.55(analyst − 13%)A.R:R 1.5:1
Analyst target$131.67+30.5%6 analysts
$114.55our TP
$100.89price
$131.67mean
$150

Sell if holding. Momentum 3.2/10 is below the 5.0 floor at $100.89 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2); Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.7/10, moderate confidence.

Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 58d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.

Recent Developments — AAR Corp.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Strong earnings beat streak (4/4)
Strong growth profile
Risks
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2)
Sector modifier (Industrials): -0.7
Negative momentum

Key Metrics

P/E (TTM)22.8
P/E (Fwd)18.4
Mkt Cap$4.1B
EV/EBITDA14.5
Profit Mgn5.5%
ROE12.1%
Rev Growth24.6%
Beta1.15
DividendNone
Rating analysts12

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C1.73bearish
IV54%elevated

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerU.S. government25%
    10-K Item 1: 'Sales to branches, agencies and departments of the U.S. government and their contractors were $687.6 million (24.7% of consolidated sales) in fiscal 2025'

Material Events(8-K, last 90d)

  • 2026-02-11Item 5.02MEDIUM
    Dylan Wolin appointed SVP and CFO of AAR CORP effective February 23, 2026. Sarah L. Flanagan (Interim CFO) steps down from Interim role and continues as VP, Financial Operations. No reason cited for the change.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Ma Position
4.0
Rsi
5.5
Volume
5.5
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.2<4.5A.R:R 1.5 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 58d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
43 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $99.62Resistance $121.59

Price Targets

$97
$115
A.Upside+13.5%
A.R:R1.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 3.2/10 — below 4.5 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-16 (58d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is AIR stock a buy right now?

Sell if holding. Momentum 3.2/10 is below the 5.0 floor at $100.89 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2); Sector modifier (Industrials): -0.7. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $96.63. Score 5.7/10, moderate confidence.

What is the AIR stock price target?

Take-profit target: $114.55 (+13.5% upside). Prior stop was $96.63. Stop-loss: $96.63.

What are the risks of investing in AIR?

V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2); Sector modifier (Industrials): -0.7; Negative momentum.

Is AIR overvalued or undervalued?

AAR Corp. trades at a P/E of 22.8 (forward 18.4). TrendMatrix value score: 6.7/10. Verdict: Sell.

What do analysts say about AIR?

12 analysts cover AIR with a consensus score of 4.1/5. Average price target: $132.

What does AAR Corp. do?AAR Corp. is an independent aviation aftermarket provider offering parts supply (40% of sales), MRO services (32%),...

AAR Corp. is an independent aviation aftermarket provider offering parts supply (40% of sales), MRO services (32%), integrated fleet management (25%), and expeditionary services (3%) to commercial airlines and government customers. FY2025 consolidated sales were ~$2.78B, with 71.1% from commercial customers and 24.7% from U.S. government/defense.

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