FTAI Stock Flies To A New High. Here's Why.

FTAI Aviation (FTAI) is Thursday’s focus in IBD 50 Growth Stocks To Watch as the jet engine and data center play is rebounding after initially dropping at the start of the session. Shares reached a high and a buy point of a newly forming cup base.

Investors are digesting its fourth-quarter results, reported late Wednesday. The aviation company has a new use for its old jet engines, tapping into the data center trend.

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FTAI Aviation owns, maintains and repairs commercial jet engines. It also owns and leases jet aircraft. But the company was resourceful and found a new use for its extra jet engines. It set up a division which turns the engines into gas turbines that power artificial intelligence data centers.

The IBD 50 stock is in the Aerospace-Defense group, which holds the 15th spot out of the 197 industry groups that Investor’s Business Daily tracks. The group has performed strongly, rising from 61st place three months ago.

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FTAI Stock Hits A Buy Point

FTAI stock turned higher Thursday morning and bypassed a 310 buy point of a newly forming cup base in heavy volume. Shares are in a 5% buy zone up to 325.50. The stock has charged up about 60% so far this year and hit an all-time high above 322 on Thursday.

The aviation stock has been on a tear since bouncing off its 10-week moving average in late December. It exploded out of a cup-with-handle base with a 184.12 entry point. The stock then staged a four-week rally prompted by the company’s announcement about converting excess jet engines into power turbines.

The stock’s relative strength line is also on a steep uptrend, according to MarketSurge chart analysis.

Its IBD Accumulation/Distribution Rating of A- indicates fairly heavy institutional buying over the last 13 weeks. And its 1.6 up/down volume ratio shows positive demand over the last 50 days.

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Aviation Name Boosts Outlook

Its fourth-quarter profit, posted late Wednesday, increased 29% to $1.08 per share, and revenue rose 33% to $662 million. Both numbers lagged analysts’ views.

However, FTAI raised its outlook for full-year 2026 adjusted earnings before interest, taxes, depreciation, and amortization, EBITDA, a measure of profitability. The new range is between $1.525 billion and $1.625 billion, up from its prior forecast of $1.4 billion to $1.525 billion.

Wall Street sees first-quarter revenue climbing 54% to $772 million. And analysts recently raised their full-year 2026 earnings projections to $7.08 per share, indicating a 54% jump year over year. Wall Street then expected FTAI’s earnings to leap 52% to $10.74 per share in 2027.

The stock holds a 97 out of 99 possible IBD Composite Rating.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.

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