Stocks to Buy for Long-Term Growth in AI and Aerospace

Stocks in focus include Synopsys, PTC, and Hexcel, all poised for long-term growth. With heavy investment in AI and aerospace industries, these stocks provide appealing opportunities for investors looking ahead.

Date: 14-02-2025

AI Rating: 7

Overview: The reported companies are poised for long-term growth due to their roles in transformative industries, particularly AI and aerospace. The analysis underscores key developments related to revenue streams and projected growth rates.

Synopsys (NASDAQ: SNPS): As an electronic design automation company, Synopsys is positioned at the forefront of AI-driven semiconductor design. Management has expressed that the company is still in the early stages of the AI transition, indicating potential for strong future growth. Wall Street analysts expect mid-teens earnings growth and a robust 30% annual increase in free cash flow (FCF), significantly enhancing investor appeal despite its high valuation at 48 times expected FCF in 2025.

PTC (NASDAQ: PTC): The company is leveraging the burgeoning trend of digital technology in manufacturing, expected to support mid-teens growth in free cash flow. This growth aligns with predictions for increased product development and lifecycle management. PTC's current trading at 24 times Wall Street estimates for FCF in 2025 adds to its attractiveness for growth-focused investors.

Hexcel (NYSE: HXL): Positioned within the aerospace sector, Hexcel is experiencing a shift toward advanced composite materials, enhancing aircraft efficiency and meeting emissions goals. While there are challenges regarding client fulfillment, notably with Boeing and Airbus, the long-term outlook remains promising due to the sustained demand for new aircraft and Hexcel's solid relationships with major manufacturers.

Stocks: SNPS PTC HXL ANSS