ISSC stock surges 252.1% in a year, driven by Honeywell deals, avionics expansion and rising estimates supporting its long-term growth outlook.

Rheinmetall (OTCMKTS:RNMBY - Get Free Report) and Innovative Solutions and Support (NASDAQ: ISSC - Get Free Report) are both aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations. Institutional and Insider Ownership 28.5% of Innovative

Here is how Innovative Solutions and Support, Inc. (ISSC) and Woodward (WWD) have performed compared to their sector so far this year.

EXTON, Pa.--(BUSINESS WIRE)--Innovative Aerosystems (Nasdaq: ISSC), a U.S.-based company specializing in the engineering, manufacturing, and supply of advanced avionic solutions, announced today that it has acquired from Honeywell International Inc. (“Honeywell”) (NASDAQ: HON) an exclusive perpetual license covering unique and related parts, intellectual property, customer contracts, OEM and aftermarket production and repair, and program assets associated with Honeywell power generator systems.

EXTON, Pa.--(BUSINESS WIRE)--Innovative Aerosystems (Nasdaq: ISSC), a U.S.-based company specializing in the engineering, manufacturing, and supply of advanced avionic solutions, announced today that it has entered into a an asset purchase and perpetual license agreement with Honeywell International Inc. (“Honeywell”) (Nasdaq: HON) for certain aftermarket parts, intellectual property, and program assets associated with select legacy Honeywell avionics product lines supporting the global Part 23.

ISSC, VIST and ESCA made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on April 1st, 2026.

Innovative Aerosystems remains a strong buy, with a $24.20 price target and 13% upside despite a 240% return since initial coverage. Q1 sales rose 36.5% to $21.8M, driven by commercial aftermarket and inorganic growth, with gross margins at 54.5% but expected to normalize to the mid-40s. ISSC's growth strategy blends organic software-driven tailwinds and M&A, notably the S-TEC Model 3100 Autopilot acquisition, supported by a potential $100M capital raise.

Aerospace-Defense Equipment stocks like AIR, ATRO and ISSC are poised to benefit from M&A momentum and solid air traffic trends.

Innovative Solutions and Support (ISSC) could be a solid choice for shorter-term investors looking to capitalize on the recent price trend in fundamentally sound stocks. It is one of the many stocks that passed through our shorter-term trading strategy-based screen.

Defense stock Innovative Aerosystems is at a multiyear high amid the U.S.-Iran war. The stock is also benefiting from strong earnings growth.