Aerospace Stocks Q3 Recap: Benchmarking Woodward (NASDAQ:WWD)

By Doug Busch

The industrial sector has historically been one of the market's clearest leading indicators. Companies at the intersection of manufacturing, transportation, and capital spending often feel pressure in their order books and pricing power well before it shows up in the broader economy.

Investors should be pleased that the current message is quite different, regardless of persistent talk about slowing growth and a weakening job market, or even a potential recession.

FedEx stock has closed at the top of its weekly range each week during its current seven-week rally. It is up more than 40% from its early April lows after rebounding from the very round $200 level. Airlines, measured by the U.S. Global Jets ETF, broke out above a double-bottom base last week with a 7% surge.

On Wednesday, Boeing logged its second double-digit gain of 2025. The last time it did so, back in April, it kicked off a rally of more than 100 points over the following four months.

Even Caterpillar, the second-highest-priced stock in the price-weighted Dow industrials, now sits at the very round $600 mark. It is just 1% shy of a record high. None of those moves are the sort that typically herald a recession.

Three stocks in the sector stand out as potential winners.

Joby Aviation, developing electric air taxis, has delivered a standout 2025. The shares are up roughly 90% for the year, despite trading 26% below the 52-week highs set in early August. After a 320% surge from April through that peak, the stock has hit some turbulence, pun intended, declining in 12 of the past 18 weeks.

From a technical perspective, round-number theory has shaped the chart. The stock broke out above a cup base at the $10 level in July and quickly advanced toward the very round $20 mark, where it met firm resistance in both August and October. The first rejection was marked by a bearish dark-cloud-cover candle on Aug. 5.

This week, Joby shrugged off a Goldman Sachs downgrade and reclaimed its 21-day exponential moving average. A doji candle on Nov. 21 defined the low of an emerging double-bottom base. Traders could initiate a position here, near Friday's level of about $15.25, with the opportunity to buy more above the double-bottom pivot at $20.08.

A move toward $28 by mid-2026 appears plausible, representing roughly 82% upside from current prices. Maintain a bullish stance above $14.

Woodward Inc., which develops and delivers control solutions and precision components for the aerospace and industrial markets, is also having a strong 2025. The stock is up 80% year to date.

Give the stock credit for doubling off its early April lows following a bullish island reversal that was completed with a gap-up on April 23. It has spent the last four months consolidating those gains.

Technically, recent tight action just above the very round $300 level has formed a constructive bull flag. Over the past seven sessions, the stock has given back none of the 12% jump that came in response to its earnings on Nov. 25. Since late April, the stock has hugged its 21-day exponential moving average, and the current bull flag comes on the heels of a cup-with-handle breakout above a $266.61 pivot.

Technicians often emphasize that true leaders provide additional entry points on the way up, and Woodward is doing just that. Traders can initiate a position here, at around $303 on Friday afternoon, with a break above the bull flag pivot at $304, targeting a move toward $354 by the second quarter of 2026. That would mark a potential gain of 16% from current levels. Remain bullish above $288.

Tutor Perini, in heavy construction, is having an even better year than Joby Aviation and Woodward. The stock is up 179% year to date. The stock currently trades 12% below its 52 week highs after advancing in 21 of 24 weeks between April and September. While it has pulled back in six of the last 10 weeks, it continues to hold the bulk of those prior gains.

Notably, the stock has absorbed back-to-back bearish, filled-in candles as investors responded to its latest earnings, in early August and early November. It has stabilized near its current level, with a cup-with-handle pivot of $68.84. Traders can initiate positions here — the stock was at $67 on Friday — and look for a move toward $84 late in the first half of 2026. That would representing roughly 23% upside from current levels. Maintain a bullish stance above $64.

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