There were no S&P 500 earnings reactions on Monday, but we want to tell you about one of the hottest stocks in the world that you probably haven't heard of.
Its name is FTAI Aviation $FTAI.
The company is quietly running one of the best businesses in the entire aerospace industry. While big manufacturers fight delays and airlines struggle to get new jets, they make money keeping the ones already in service flying.
Instead of building new engines, they repair, recycle, and lease existing ones - giving airlines a faster, cheaper, and more predictable way to keep planes in the air.
Think of them as the go-to mechanic for the global airline fleet.
When an airline’s engine breaks, it swaps it out for one already refurbished and ready to go. That’s how FTAI has built an empire of recurring revenue and sky-high margins.
And business has never been better.
Last quarter, FTAI delivered the strongest quarter in its history with revenue and EBITDA hitting new all-time highs.
FTAI increased its revenues and EBITDA by nearly 25% and 22% year-over-year, respectively. In addition, the management team raised its free cash flow guidance.
This is what happens when a niche business hits its stride. Airlines are holding onto older planes longer than ever, and this company is there to service every one of them.
Every quarter, they’re minting more profit from engines they already own.
And Wall Street has taken notice.
When the company reported those results in July, the stock exploded 26% higher in a single day - its best earnings reaction ever.
That kind of move doesn’t happen by accident. It’s what you see when a company smashes everyone's expectations.
The market’s message was clear: FTAI is doing everything right.
Since entering a secular uptrend in late 2022, the stock has rallied more than 1,100%, creating one of the cleanest long-term uptrends in the entire market.
After consolidating for nearly a year, the price is now coiling just below a key Fibonacci extension level. With another earnings report next Monday, the next leg higher could be less than a week away.
The market is expecting $659M in revenue and $1.21 in earnings per share - but given FTAI’s recent track record, another upside surprise wouldn’t shock us.
If the company delivers, we could see a classic gap-and-go, sparking the next leg of the stock’s long-term primary uptrend.
So long as FTAI is above 174, the path of least resistance will likely remain higher for the foreseeable future.
Happy fishing
-The Beat Team
P.S. The crypto market just had its biggest liquidation event ever. On Thursday, Louis Sykes will reveal which cryptos will emerge from the ashes, and which will not.
