StockStory Favors AAR as Two Industrials Face Headwinds

StockStory named AAR its preferred industrials stock, citing revenue growth, rising earnings per share and an improving free cash flow margin. The publisher contrasted those trends with challenges it sees at Perma-Fix and Landstar.

AAR’s revenue grew 19.9% annually over the past two years, StockStory said. Earnings per share rose 26.8% annually over the same period, outpacing revenue growth, while its free cash flow margin increased by 1.4 percentage points over five years.

StockStory pointed to Perma-Fix’s sales decline of 10.2% annually over five years and warned that shrinking cash reserves could lead to fundraising that dilutes shareholders. It also said the company’s returns on capital were weakening.

For Landstar, the publisher cited stagnant sales over five years and a 10.7% annual drop in earnings per share. It said the company’s returns on capital had also diminished.

The article said industrials had returned 6.9% over six months, compared with a 21.1% gain for the S&P 500. Those performance figures were presented as evidence that the sector was lagging.