Key Points
- European aerospace and defense stocks are poised for a strong 2025.
- Colt CZ Group is a top pick, offering huge growth at a very low valuation. Montana Aerospace is a pure growth play with significant upside potential.
- MTU Aero Engines is the blue-chip choice, offering a mix of stability and growth.
- Dassault Aviation is a resilient option with low debt and balanced market exposure.
The European aerospace and defense sector is looking strong for 2025, and a new analysis has pinpointed four companies that stand out for their compelling mix of growth and value. From high-growth firearms makers to blue-chip engine manufacturers, these stocks represent some of the most promising opportunities in the industry.
Colt CZ Group leads the pack. The firearms maker is forecasting a massive 178% growth in earnings per share (EPS), yet it’s still considered “exceptionally undervalued.” With a solid dividend and a 33% upside to analyst targets, it’s a top pick for both growth and income.
Montana Aerospace is another high-growth play, with projected EPS growth of 147%. Although it doesn’t pay a dividend, analysts see a significant 45% upside for the stock; however, investors should be prepared for some volatility.
For those seeking a more stable, blue-chip option, MTU Aero Engines stands out. The company has already delivered a 38% return over the past year and is forecasting another 51% in EPS growth. With strong technical indicators and a leading return on equity, it offers a solid combination of stability and growth.
Finally, Dassault Aviation rounds out the list. The company, which has a balanced exposure to both military and civilian aerospace, has seen a 52% return this year. While its growth forecast is more modest, its extremely low debt and solid profitability make it a resilient choice in a potentially volatile sector.
