Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Shares of aircraft leasing company FTAI Aviation (NASDAQ:FTAI) jumped 3.1% in the afternoon session after Citi reiterated its "Buy" rating and opened a 90-day positive catalyst watch on the shares. The investment bank anticipates that FTAI will secure final Parts Manufacturer Approval (PMA) for its CFM56 engine modules within the next three months. This approval is significant as it would allow the company to manufacture and sell its own engine parts, a move that Citi believes could substantially increase engine module volumes and boost free cash flow.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the vehicle parts distributors industry, including GATX (NYSE:GATX) and its peers.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at vehicle parts distributors stocks, starting with FTAI Aviation (NASDAQ:FTAI).
Shares of aircraft leasing company FTAI Aviation (NASDAQ:FTAI) jumped 5.3% in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding.
Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit. A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Aircraft leasing company FTAI Aviation (NASDAQ:FTAI) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 53.7% year on year to $502.1 million. Its non-GAAP profit of $1.02 per share was 16.3% above analysts’ consensus estimates.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
