GE Aerospace (GE) exceeded third quarter earnings expectations and raised its full-year profit outlook, driven by robust demand. Despite these positive results, the stock has retreated. Gabelli Funds Aerospace and Defense ETF (GCAD) portfolio manager Tony Bancroft joins Catalysts to discuss.

Bancroft explains that the sell-off stems from a combination of profit-taking and investors being "overcharged on selling. " He emphasizes that the company maintains "a great backlog" and continues to benefit from strong secular tailwinds.

However, he notes that production remains "capacity constrained" due to Boeing's (BA) ongoing challenges and the current labor strike.

"I think the big picture is that GE's a great company," Bancroft states, expressing confidence in their long-term potential to outperform. However, he cautions that in the near term, much of their momentum depends on Boeing, whose union vote results for the new contract will release Wednesday.

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Angel Smith