Aerospace Stocks Are Wall Street Favorites. Still, There Is Risk.

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.