What Happened?

Shares of aviation and fleet aftermarket services provider VSE Corporation (NASDAQ: VSEC) jumped 4.5% in the afternoon session after the stock extended its positive momentum as its VSE Aviation division announced a used serviceable material (USM) collaboration with Eaton. The partnership combined Eaton's OEM repair expertise with VSE's strength in distribution and asset management. Under the agreement, VSE would acquire and manage Eaton components as they were removed from service. This collaboration allowed VSE to expand its relationship with a key industry original equipment manufacturer.

After the initial pop the shares cooled down to $166.65, up 4.4% from previous close.

Is now the time to buy VSE Corporation? Access our full analysis report here.

What Is The Market Telling Us

VSE Corporation’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 11% on the news that the company announced strong second-quarter 2025 financial results, posting record revenue and beating analyst expectations on adjusted earnings. The company's focus on its aviation business fueled this growth, with the Aviation segment's revenue jumping 41.1% compared to the prior year to a record $272.1 million. While the company's GAAP earnings per share missed estimates, its adjusted earnings per share of $0.97 significantly beat analyst forecasts. VSE also reaffirmed its full-year revenue growth projection of 35% to 40% and raised the full-year profitability guidance for its key Aviation segment, which signaled confidence to investors.

VSE Corporation is up 79.4% since the beginning of the year, and at $166.65 per share, it is trading close to its 52-week high of $172.66 from September 2025. Investors who bought $1,000 worth of VSE Corporation’s shares 5 years ago would now be looking at an investment worth $5,289.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.