The pandemic has hit the airline industry pretty hard. Not only have people put a curb on flying and traveling, but even companies are also conducting meetings online and business travel has dropped. It is, therefore, natural that suppliers and service providers to commercial airlines are also suffering.

However, some of the best aerospace and defense stocks are not doing too badly. Heico Corporation is one such stock. It is one of the most popular choices among aerospace and defense stocks because it derives almost half its revenues from segments other than commercial aviation. Heico is well-known for making aerospace avionics and other components. It also makes parts that are used in medical devices like X-ray systems, personal protective equipment, and sterilization equipment. All of these medical supplies have been in great demand during the pandemic.

Plus, Heico has a sizeable business in the defense segment. Defense is somewhat recession-proof as the Pentagon does not stop giving out contracts with changes in the economic scenario. As the world begins to emerge from the pandemic and as lockdowns ease, commercial aviation is also poised to make a gradual comeback, which aids the business of companies like Heico.

Another candidate among aerospace and defense stocks to buy is TransDigm Group. On August 4th, 2020, the company reported its Q32020 earnings. Revenues were down to $1.02 billion from $1.66 billion a year ago, but above analyst estimates. Adjusted earnings per share were also significantly down from $4.65 in Q32019 to $1.54 in Q32020.

According to Kevin Stein, CEO, TransDigm Group, “Throughout our third fiscal quarter much of the global fleet was grounded and there was a substantial reduction in both passenger demand and air traffic due to the COVID-19 pandemic and the ensuing widespread lockdowns. Despite these headwinds, I am pleased that we were able to achieve an EBITDA As Defined margin of 41.5% as a result of swift and purposeful management of our cost structure.”

Aerospace And Defense Stocks To Buy