Safran (SAFRY) is a top performer in European equities with strong growth potential.

From Nasdaq: 2025-05-24 04:30:00

Safran (SAFRY) is a standout performer in European equities, specializing in aircraft propulsion, equipment, and defense systems. The stock has surged 33% this year, supported by macro tailwinds and a strong long-term track record of compounding at 15.1% annually. With a Top Zacks Rank, Safran presents a compelling investment opportunity.

Analysts are bullish on Safran due to European defense budget increases. Earnings forecasts have been raised, with consensus estimates climbing for both the current year and 2026. Safran’s Zacks Rank #1 rating reflects growing confidence in the company’s ability to capitalize on aerospace and defense tailwinds.

Safran shares have rerated to a premium valuation, trading at a forward earnings multiple of 34.7x. This is justified by geopolitical shifts driving defense spending in Europe. The broader aerospace and defense industry is also seeing multiple expansion, with Safran expected to grow earnings at an annual rate of 19.5%.

Safran offers strong fundamentals, thematic tailwinds, and consistent execution. Despite its premium valuation, rising earnings estimates, growth potential, and strategic position in aerospace and defense make it a high-conviction idea. For investors seeking exposure to European industrial resurgence and defense rearmament, Safran is a compelling choice.



Read more at Nasdaq: Bull of the Day: Safran (SAFRY)