Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJames Halley, The Motley FoolSun, June 28, 2026 at 6:50 PM GMT+2 5 min readSpace Exploration Technologies, better known as SpaceX, had a huge initial public offering (IPO) earlier this month, making founder Elon Musk the first trillionaire. However, since its splashy debut, the stock had fallen to $147.11 on June 23 and, even after a rebound, is below its opening day's closing price of $160.95.The sky isn't the limit for aerospace and defense industry stocks, and there are several less-risky stocks than SpaceX, including companies with strong track records of earnings-per-share (EPS) growth.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Howmet Aerospace (NYSE: HWM) and TransDigm Group (NYSE: TDG) have earnings growth profiles that easily outpace larger aerospace and defense companies. Over the past five years, Howmet's EPS have risen by more than 540% while TransDigm's have jumped more than 270%.Here are three reasons to buy each stock.Image source: Getty Images.Howmet is helping keep aging fleets aloftHowmet Aerospace has established itself as an elite, high-moat supplier of industrial and aerospace ecosystems. While delays in new aircraft production by major original equipment manufacturers (OEMs) have constrained the broader industry, they have created a massive windfall for Howmet's aftermarket business. Commercial airlines are flying older fleets longer to meet robust travel demand, so more aircraft require intensive maintenance and engine overhauls.In the first quarter, Howmet reported revenue of $2.3 billion, up 19% year over year, and earnings per share (EPS) of $1.44, up 71%. In 2025, Howmet's commercial aerospace spare parts sales skyrocketed 48% year over year, bringing spares to roughly 23% of total revenue. Because aftermarket spare parts carry significantly higher margins than initial equipment builds, this structural mix shift is a powerful margin expander.The data center boom needs its gas turbinesBeyond aviation, Howmet is emerging as a critical pick-and-shovel play on the artificial intelligence and data center land grab. Data centers require massive, uninterrupted amounts of electricity, driving a secular surge in demand for industrial gas turbines to back up power grids.Howmet's gas turbine segment delivered 39% year-over-year revenue growth in the first quarter. Management expects its roughly $1 billion gas turbine business to potentially double over the next three to five years, giving the company a highly visible, non-aerospace growth engine backed by long-term corporate energy contracts.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info