01. V2X, Inc. (NYSE:VVX)
Upside Potential as of June 23: 40%
At the top of our list of 10 best aerospace and defense stocks according to Wall Street analysts stands V2X, Inc. (NYSE:VVX). The company is proving to be a rising star in the aerospace and defense sector, delivering strong fundamentals, steady contract wins, and a clear growth strategy. With a Wall Street target price of $62.73, V2X, Inc. (NYSE:VVX) stock offers a compelling 40% upside from its June 22 closing price of $44.75, making it a worthy contender in any defense focused investment portfolio.
V2X started the year with a beat on expectations, reporting Q1 EPS of $0.98, surpassing estimates of $0.92. The company posted $1.02 billion in revenue, supported by a 10% year over year increase in the Indo Pacific region and robust contributions from its newly ramped Warfighter Training and Readiness Solutions (WTRS) program. Adjusted EBITDA came in at $67 million, with a margin of 6.6%, aligning with expectations and pointing to a stronger second half of the year.
With a backlog nearly 3x its annual revenue and multi year extensions on core programs like LOGCAP running through 2030, V2X enjoys exceptional revenue visibility. This strategic stability gives management the freedom to pursue bold growth initiatives. The company plans to increase bid volume by 50% in 2025 and is actively pursuing five opportunities worth $1 billion or more over the next 12 months, an ambitious move backed by past performance and customer trust.
Recent wins underscore V2X’s global capabilities and mission critical relevance. These include a $103 million contract with the U.S. Navy for aircraft modernization, a $140 million award from the Space Force for infrastructure support on Ascension Island, and a $100 million deal with the FBI for aircraft readiness. These high profile wins illustrate V2X’s strength across domains, from space to fleet support to cyber readiness.
With $650 million in liquidity, disciplined capital management, and demand tailwinds in defense and training, V2X, Inc. (NYSE:VVX) is in a strong position to scale. The company is leveraging its full life cycle solutions and strategic partnerships to expand its global footprint, particularly in foreign military sales and allied defense markets. For investors seeking long term growth in defense, V2X, Inc. (NYSE:VVX) stands out with its proven execution, deep government ties, and significant upside potential.
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