Don't Buy SpaceX Until You Consider These 2 Aerospace and Defense Stocks With 10% EPS Growth

The article presents a comparative valuation framework positioning Howmet Aerospace (HWM) and TransDigm Group (TDG) as alternatives to private SpaceX equity exposure. Both companies demonstrate substantial historical earnings growth—triple-digit EPS expansion over five years—suggesting operational leverage and pricing power within the aerospace supply chain.

The underlying thesis emphasizes earnings trajectory rather than near-term catalysts. HWM and TDG operate in cyclical but structurally supportive segments: advanced materials and aerospace components benefit from fleet modernization, defense spending continuity, and space commercialization tailwinds. The 10% forward EPS growth cited indicates market expectations for sustained but moderate expansion, distinct from the speculative growth premiums embedded in private aerospace valuations.

This framing reflects institutional reassessment of aerospace exposure—shifting emphasis from binary venture outcomes toward established manufacturers with contracted revenue visibility and margin resilience. Both firms possess significant defense revenue exposure, providing portfolio diversification relative to pure-play commercial space bets dependent on satellite deployment cycles and launch cadence.

Sector implication: The recommendation signals confidence in industrial capital goods and aerospace supply-chain consolidation as attractive risk-adjusted alternatives. Broader aerospace and defense sector fundamentals remain supported by geopolitical tensions, military modernization budgets, and commercial aviation recovery phases, though valuation compression risk persists if economic growth disappoints.