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Best Defense Stocks to Buy Now (2023)
Top defense stocks in 2023 ranked by overall Zen Score. See the best defense stocks to buy now, according to analyst forecasts for the aerospace & defense industry.

Industry: Aerospace & Defense
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
IVAC
INTEVAC INC
NASDAQ
Aerospace & Defense
$172.74M$6.79-1.74%$32.98M5.57x0.36
POWW
AMMO INC
NASDAQ
Aerospace & Defense
$277.18M$2.363.06%$36.63M33.71x0.12
RGR
STURM RUGER & CO INC
NYSE
Aerospace & Defense
$979.79M$55.460.23%$157.00M9.08x0.16
DCO
DUCOMMUN INC
NYSE
Aerospace & Defense
$674.83M$55.761.31%$213.77M5.05x0.95
LHX
L3HARRIS TECHNOLOGIES INC
NYSE
Aerospace & Defense
$37.42B$196.54-0.58%$2.54B33.77x0.82
NOC
NORTHROP GRUMMAN CORP
NYSE
Aerospace & Defense
$67.87B$443.47-4.28%$7.68B14.03x1.86
BWXT
BWX TECHNOLOGIES INC
NYSE
Aerospace & Defense
$5.56B$60.950.74%$509.71M18.03x2.75
SWBI
SMITH & WESSON BRANDS INC
NASDAQ
Aerospace & Defense
$495.69M$10.802.18%$135.69M6.24x0.38
GD
GENERAL DYNAMICS CORP
NYSE
Aerospace & Defense
$62.63B$228.110.54%$4.91B18.87x1.90
KAMN
KAMAN CORP
NYSE
Aerospace & Defense
$669.37M$23.890.50%$74.92M37.33x1.04
HII
HUNTINGTON INGALLS INDUSTRIES INC
NYSE
Aerospace & Defense
$8.68B$217.540.31%$1.17B15.15x2.48
LMT
LOCKHEED MARTIN CORP
NYSE
Aerospace & Defense
$117.39B$459.811.24%$8.71B21.15x4.71
DRS
LEONARDO DRS INC
NASDAQ
Aerospace & Defense
N/A$13.161.70%$617.00M4.80x0.91
AXON
AXON ENTERPRISE INC
NASDAQ
Aerospace & Defense
$13.69B$192.330.08%$154.50M131.73x0.63
TXT
TEXTRON INC
NYSE
Aerospace & Defense
$15.06B$72.122.81%$1.52B18.49x1.36
RTX
RAYTHEON TECHNOLOGIES CORP
NYSE
Aerospace & Defense
$147.37B$100.250.24%$10.51B33.31x1.23
BYRN
BYRNA TECHNOLOGIES INC
NASDAQ
Aerospace & Defense
$222.14M$9.991.22%-$8.89M-19.98x0.23
AIR
AAR CORP
NYSE
Aerospace & Defense
$1.74B$50.492.06%$155.80M19.57x0.59
AJRD
AEROJET ROCKETDYNE HOLDINGS INC
NYSE
Aerospace & Defense
$4.54B$56.360.16%$219.70M47.76x3.33
HEI
HEICO CORP
NYSE
Aerospace & Defense
$23.10B$169.070.40%$554.79M65.28x0.43
VSEC
VSE CORP
NASDAQ
Aerospace & Defense
$676.46M$52.851.54%$79.96M22.88x1.15
CODA
CODA OCTOPUS GROUP INC
NASDAQ
Aerospace & Defense
$88.14M$8.122.62%$5.75M23.87x0.10
ASTC
ASTROTECH CORP
NASDAQ
Aerospace & Defense
$20.03M$11.852.14%-$8.55M-2.19x0.04
RKLB
ROCKET LAB USA INC
NASDAQ
Aerospace & Defense
$2.31B$4.88-0.61%-$60.54M30.50x0.45
WWD
WOODWARD INC
NASDAQ
Aerospace & Defense
$6.56B$109.760.97%$355.07M39.34x1.00
ESLT
ELBIT SYSTEMS LTD
NASDAQ
Aerospace & Defense
$7.31B$164.81-3.16%$525.15M36.79x2.63
VVX
V2X INC
NYSE
Aerospace & Defense
$1.33B$43.722.70%$76.27M36.43x2.21
PL
PLANET LABS PBC
NYSE
Aerospace & Defense
$1.32B$4.860.41%-$121.70M5.93x0.26
DPRO
DRAGANFLY INC
NASDAQ
Aerospace & Defense
$45.65M$1.42-2.74%$1.38M7.80x0.09
KTOS
KRATOS DEFENSE & SECURITY SOLUTIONS INC
NASDAQ
Aerospace & Defense
$1.38B$10.990.92%$26.70M-45.79x0.67
ASTR
ASTRA SPACE INC
NASDAQ
Aerospace & Defense
$163.15M$0.610.66%-$404.36M3.39x0.89
VTSI
VIRTRA INC
NASDAQ
Aerospace & Defense
$52.64M$4.83-0.68%$1.75M120.75x0.58
SPCE
VIRGIN GALACTIC HOLDINGS INC
NYSE
Aerospace & Defense
$1.48B$5.380.37%-$406.07M-3.24x1.05
MOG.A
MOOG INC
NYSE
Aerospace & Defense
$2.97B$93.681.25%$328.13M19.32x1.39
MRCY
MERCURY SYSTEMS INC
NASDAQ
Aerospace & Defense
$2.84B$49.021.83%$116.01M817.00x0.53
PKE
PARK AEROSPACE CORP
NYSE
Aerospace & Defense
$277.18M$13.54-0.95%$12.25M35.63x0.18
NPK
NATIONAL PRESTO INDUSTRIES INC
NYSE
Aerospace & Defense
$513.07M$72.671.34%$30.52M23.75x0.18
CAE
CAE INC
NYSE
Aerospace & Defense
$7.04B$22.160.91%$450.80M74.11x1.37
ACHR
ARCHER AVIATION INC
NYSE
Aerospace & Defense
$622.83M$2.56-0.39%-$258.70M5.95x0.14
UAVS
AGEAGLE AERIAL SYSTEMS INC
NYSEMKT
Aerospace & Defense
$45.68M$0.522.36%-$26.61M-1.27x0.08
HXL
HEXCEL CORP
NYSE
Aerospace & Defense
$5.70B$67.779.03%$303.40M52.95x0.92
TDG
TRANSDIGM GROUP INC
NYSE
Aerospace & Defense
$38.61B$710.141.38%$2.46B53.00x-5.80
ISSC
INNOVATIVE SOLUTIONS & SUPPORT INC
NASDAQ
Aerospace & Defense
$149.79M$8.65-0.12%$7.71M27.03x0.13
MNTS
MOMENTUS INC
NASDAQ
Aerospace & Defense
$69.09M$0.82-4.98%-$61.98M-0.75x0.82
LILM
LILIUM NV
NASDAQ
Aerospace & Defense
$376.72M$1.281.59%-$408.95M0.00x0.35
VORB
VIRGIN ORBIT HOLDINGS INC
NASDAQ
Aerospace & Defense
$559.44M$1.66-2.64%-$177.39M0.00x1.72
EH
EHANG HOLDINGS LTD
NASDAQ
Aerospace & Defense
$773.31M$13.4817.83%N/A-16.89x1.64
ERJ
EMBRAER SA
NYSE
Aerospace & Defense
$2.40B$13.09-0.83%$434.20M-54.54x2.77
ATRO
ASTRONICS CORP
NASDAQ
Aerospace & Defense
$465.19M$14.46-3.02%$18.57M-17.21x1.53
BA
BOEING CO
NYSE
Aerospace & Defense
$126.78B$212.730.02%-$4.39B-14.90x-8.77
AVAV
AEROVIRONMENT INC
NASDAQ
Aerospace & Defense
$2.22B$88.302.88%$61.46M-275.94x0.47
LLAP
TERRAN ORBITAL CORP
NYSE
Aerospace & Defense
$271.95M$1.91-5.91%-$147.93M-0.12x-3.23
TGI
TRIUMPH GROUP INC
NYSE
Aerospace & Defense
$709.81M$10.921.30%$272.09M7.64x-3.23
SPR
SPIRIT AEROSYSTEMS HOLDINGS INC
NYSE
Aerospace & Defense
$3.52B$33.431.77%$153.50M-8.25x-146.62
SIDU
SIDUS SPACE INC
NASDAQ
Aerospace & Defense
$20.87M$1.16-0.85%-$9.82M-1.59x0.43
EVEX
EVE HOLDING INC
NYSE
Aerospace & Defense
$1.83B$6.884.08%-$91.09MN/A0.10
TATT
TAT TECHNOLOGIES LTD
NASDAQ
Aerospace & Defense
$52.31M$5.71-0.70%$590.00k-19.03x0.63
AIRI
AIR INDUSTRIES GROUP
NYSEMKT
Aerospace & Defense
$16.66M$5.133.64%$5.80M11.15x2.11
CDRE
CADRE HOLDINGS INC
NYSE
Aerospace & Defense
$833.26M$22.32-0.49%$25.05M223.20x1.40
RDW
REDWIRE CORP
NYSE
Aerospace & Defense
$152.61M$2.39-1.24%-$109.51M-1.32x11.46
MOB
MOBILICOM LTD
NASDAQ
Aerospace & Defense
$3.61M$1.19-3.25%N/AN/A2.04
SIF
SIFCO INDUSTRIES INC
NYSEMKT
Aerospace & Defense
$19.08M$3.1310.73%-$2.69M-1.90x1.39
CVU
CPI AEROSTRUCTURES INC
NYSEMKT
Aerospace & Defense
$46.69M$3.771.34%$4.44M25.13x-20.92
AZ
A2Z SMART TECHNOLOGIES CORP
NASDAQ
Aerospace & Defense
$52.65M$1.92-4.95%N/AN/A1.18
SKYH
SKY HARBOUR GROUP CORP
NYSEMKT
Aerospace & Defense
$291.49M$5.100.59%$5.43M-8.23x9.30
EVTL
VERTICAL AEROSPACE LTD
NYSE
Aerospace & Defense
$446.03M$2.12-0.93%N/AN/A-5.48

Defense Stocks FAQ

What are the best defense stocks to buy right now in Jan 2023?

According to Zen Score, the 3 best defense stocks to buy right now are:

1. Intevac (NASDAQ:IVAC)


Intevac (NASDAQ:IVAC) is the top defense stock with a Zen Score of 65, which is 33 points higher than the defense industry average of 32. It passed 20 out of 33 due diligence checks and has strong fundamentals. Intevac has seen its stock return 28.11% over the past year, overperforming other defense stocks by 20 percentage points.

Intevac has an average 1 year price target of $9.00, an upside of 32.55% from Intevac's current stock price of $6.79.

Intevac stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Intevac, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Ammo (NASDAQ:POWW)


Ammo (NASDAQ:POWW) is the second best defense stock with a Zen Score of 63, which is 31 points higher than the defense industry average of 32. It passed 20 out of 33 due diligence checks and has strong fundamentals. Ammo has seen its stock lose -43.27% over the past year, underperforming other defense stocks by -52 percentage points.

Ammo has an average 1 year price target of $4.50, an upside of 90.68% from Ammo's current stock price of $2.36.

Ammo stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Ammo, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Ducommun (NYSE:DCO)


Ducommun (NYSE:DCO) is the third best defense stock with a Zen Score of 57, which is 25 points higher than the defense industry average of 32. It passed 18 out of 33 due diligence checks and has strong fundamentals. Ducommun has seen its stock return 29.37% over the past year, overperforming other defense stocks by 21 percentage points.

Ducommun has an average 1 year price target of $65.00, an upside of 16.57% from Ducommun's current stock price of $55.76.

Ducommun stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Ducommun, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the defense stocks with highest dividends?

Out of 20 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

1. Sturm Ruger & Co (NYSE:RGR)


Sturm Ruger & Co (NYSE:RGR) has an annual dividend yield of 13.38%, which is 11 percentage points higher than the defense industry average of 2.45%. Sturm Ruger & Co's dividend payout is not stable, having dropped more than 10% thirteen times in the last 10 years. Sturm Ruger & Co's dividend has shown consistent growth over the last 10 years.

Sturm Ruger & Co's dividend payout ratio of 45.8% indicates that its high dividend yield is sustainable for the long-term.

2. National Presto Industries (NYSE:NPK)


National Presto Industries (NYSE:NPK) has an annual dividend yield of 6.19%, which is 4 percentage points higher than the defense industry average of 2.45%. National Presto Industries's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. National Presto Industries's dividend has not shown consistent growth over the last 10 years.

National Presto Industries's dividend payout ratio of 147.1% indicates that its high dividend yield might not be sustainable for the long-term.

3. Smith & Wesson Brands (NASDAQ:SWBI)


Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 3.52%, which is 1 percentage points higher than the defense industry average of 2.45%.

Smith & Wesson Brands's dividend payout ratio of 20.8% indicates that its dividend yield is sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.33% in the last day, and up 3.9% over the last week. Hexcel was the among the top gainers in the aerospace & defense industry, gaining 9.03% yesterday.

Hexcel shares are trading higher after the company reported beter-than-expected Q4 EPS and sales results.

What are the most undervalued defense stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued defense stocks right now are:

1. Intevac (NASDAQ:IVAC)


Intevac (NASDAQ:IVAC) is the most undervalued defense stock based on WallStreetZen's Valuation Score. Intevac has a valuation score of 100, which is 70 points higher than the defense industry average of 30. It passed 7 out of 7 valuation due diligence checks.

Intevac's stock has gained 28.11% in the past year. It has overperformed other stocks in the defense industry by 20 percentage points.

2. Smith & Wesson Brands (NASDAQ:SWBI)


Smith & Wesson Brands (NASDAQ:SWBI) is the second most undervalued defense stock based on WallStreetZen's Valuation Score. Smith & Wesson Brands has a valuation score of 86, which is 56 points higher than the defense industry average of 30. It passed 6 out of 7 valuation due diligence checks.

Smith & Wesson Brands's stock has dropped -33.25% in the past year. It has underperformed other stocks in the defense industry by -42 percentage points.

3. Astra Space (NASDAQ:ASTR)


Astra Space (NASDAQ:ASTR) is the third most undervalued defense stock based on WallStreetZen's Valuation Score. Astra Space has a valuation score of 71, which is 41 points higher than the defense industry average of 30. It passed 5 out of 7 valuation due diligence checks.

Astra Space's stock has dropped -86.88% in the past year. It has underperformed other stocks in the defense industry by -95 percentage points.

Are defense stocks a good buy now?

41.82% of defense stocks rated by analysts are a buy right now. On average, analysts expect defense stocks to rise by 10.8% over the next year.

What is the average p/e ratio of the aerospace & defense industry?

The average P/E ratio of the aerospace & defense industry is 25x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.