Aerospace Stocks Are Wall Street Favorites. 1 Analyst Sees a Risk Though.

Aerospace stocks are hot on Wall Street, pushed by analysts who expect the demand in global air travel to keep growing. There is a very real risk to the sector’s rosy year, though—rising interest rates.

First, the case for strong demand: International air traffic in November, the latest available month for data, was off about 25% from November 2019, according to the International Air Transport Association.