Sectors & Industries IndustrialsAerospace & Defense
Best Defense Stocks to Buy Now (2026)
Top defense stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best defense stocks to buy now. Learn More.

Industry: Aerospace & Defense

Overview Zen Rating Price Value Growth Financials Momentum

Sentiment Forecast Dividends Due Diligence

Defense is Zen Rated D and is the 90th ranked industry out of 145 stock market industries

Ticker	Company	Price	Volume	Vol 1d %	SMA 10	SMA 20	SMA 50	SMA 100	SMA 200	RSI	Stochastic %K	Stochastic %D	StochRSI %K	StochRSI %D	MACD	MACD Signal	MACD Histogram	Beta
ATRO	ASTRONICS CORP	$65.71	2,055,000	58.20%	70.99	73.15	74.26	77.17	72.92	34.28	13.39	9.42	3.98	1.33	-2.83	-1.64	-1.18	1.27
SWBI	SMITH & WESSON BRANDS INC	$13.64	1,188,000	98.33%	13.23	13.17	14.06	14.60	13.41	53.16	61.74	55.12	93.36	88.31	-0.21	-0.32	0.11	0.79
RGR	STURM RUGER & CO INC	$40.96	593,000	28.63%	38.31	38.17	38.11	38.76	38.11	67.63	62.73	36.44	66.67	38.27	0.27	-0.00	0.27	0.52
EMBJ	EMBRAER SA	$75.07	706,000	-19.31%	74.50	74.21	71.54	65.89	66.48	57.60	62.32	58.56	62.44	57.55	0.75	0.91	-0.16	1.26
LMT	LOCKHEED MARTIN CORP	$533.38	2,825,000	110.19%	531.18	543.08	556.53	538.53	560.15	42.42	32.97	29.51	77.84	70.59	-9.27	-9.01	-0.26	0.22
MOG.A	MOOG INC	$364.64	835,000	269.47%	364.16	370.05	392.91	377.39	335.40	41.59	33.52	25.99	46.61	23.30	-10.54	-10.38	-0.16	1.00
VVX	V2X INC	$76.84	3,908,000	481.55%	74.21	75.72	79.12	78.03	71.52	50.34	61.21	51.11	100.00	92.58	-1.28	-1.63	0.35	0.76
DCO	DUCOMMUN INC	$166.25	544,000	154.21%	167.81	172.65	179.79	167.99	142.70	41.13	43.14	37.25	72.19	63.26	-4.83	-4.50	-0.32	0.93
CVU	CPI AEROSTRUCTURES INC	$5.11	78,000	-8.24%	5.10	5.19	5.12	4.87	4.36	47.13	22.27	15.56	31.17	11.83	-0.05	-0.02	-0.03	0.76
RTX	RTX CORP	$194.00	9,842,000	177.24%	196.82	202.46	208.05	194.75	194.17	30.69	13.45	12.88	10.58	8.80	-4.59	-3.60	-1.00	0.56
DRS	LEONARDO DRS INC	$37.19	2,987,000	240.98%	36.61	37.49	42.09	43.18	42.06	36.69	47.34	40.50	99.59	90.88	-1.59	-1.86	0.27	0.93
CDRE	CADRE HOLDINGS INC	$26.29	1,574,000	185.14%	28.10	29.48	30.70	30.13	34.52	28.70	4.76	5.57	3.68	4.33	-1.33	-0.93	-0.40	0.89
HWM	HOWMET AEROSPACE INC	$229.67	4,732,000	87.70%	231.59	246.50	267.63	264.92	246.77	34.38	10.90	8.28	28.18	18.22	-13.07	-11.59	-1.48	1.13
GD	GENERAL DYNAMICS CORP	$353.05	2,695,000	133.94%	356.32	366.00	376.29	362.45	355.26	32.21	16.69	19.03	47.68	45.74	-6.93	-6.06	-0.87	0.54
SARO	STANDARDAERO INC	$22.30	10,293,000	109.16%	23.60	24.16	26.56	26.65	27.69	26.06	5.26	7.67	1.24	8.28	-1.10	-1.01	-0.09	1.17
HXL	HEXCEL CORP	$88.15	1,837,000	67.46%	90.59	91.95	98.87	96.22	89.36	31.68	17.49	24.55	37.45	55.05	-2.57	-2.50	-0.08	1.08
NPK	NATIONAL PRESTO INDUSTRIES INC	$148.58	323,000	232.99%	150.74	150.73	138.91	135.50	130.44	52.22	61.07	71.03	26.67	43.27	3.08	3.69	-0.60	0.61
LHX	L3HARRIS TECHNOLOGIES INC	$247.29	2,846,000	49.40%	250.36	256.82	274.71	289.52	312.77	30.44	19.15	20.59	54.58	54.22	-8.18	-8.26	0.08	0.40
HEI	HEICO CORP	$298.22	736,000	96.79%	307.71	323.02	343.22	330.93	322.48	25.58	7.98	5.75	26.60	15.75	-14.39	-11.91	-2.47	0.87
IA	INNOVATIVE SOLUTIONS & SUPPORT INC	$18.38	687,000	173.71%	18.54	19.34	19.66	18.92	20.00	42.08	16.29	15.01	37.82	31.10	-0.51	-0.40	-0.10	0.85
PKE	PARK AEROSPACE CORP	$30.34	826,000	156.52%	31.12	31.74	33.83	34.02	29.86	37.53	27.03	29.07	71.28	74.38	-1.08	-1.04	-0.04	0.75
ESLT	ELBIT SYSTEMS LTD	$743.35	80,000	26.98%	726.48	721.41	762.17	783.71	762.45	51.60	88.09	87.29	96.60	97.99	-7.82	-14.39	6.57	0.44
CAE	CAE INC	$23.57	898,000	-15.92%	24.03	24.27	25.21	25.41	27.41	39.85	38.93	38.23	81.65	81.40	-0.45	-0.45	0.00	1.17
LOAR	LOAR HOLDINGS INC	$64.43	1,816,000	141.81%	65.43	68.50	70.70	68.36	67.51	36.67	14.63	10.87	33.56	22.93	-2.26	-1.81	-0.44	1.45
TATT	TAT TECHNOLOGIES LTD	$38.01	158,000	28.46%	38.51	37.95	39.59	40.20	43.82	47.15	31.92	34.03	39.92	42.03	-0.43	-0.51	0.09	0.68
OPXS	OPTEX SYSTEMS HOLDINGS INC	$10.50	10,400	-44.39%	10.36	10.36	11.22	11.57	12.54	47.04	83.32	81.19	94.55	96.47	-0.21	-0.31	0.09	0.74
HII	HUNTINGTON INGALLS INDUSTRIES INC	$272.86	1,448,000	243.13%	280.34	286.92	296.28	302.45	346.59	29.24	15.78	18.70	0.00	0.54	-7.39	-6.14	-1.25	0.59
TDG	TRANSDIGM GROUP INC	$1,086.05	770,000	69.98%	1,113.85	1,147.45	1,203.38	1,224.35	1,258.61	29.33	7.87	5.76	11.66	4.20	-37.06	-31.48	-5.58	0.98
ARXS	ARXIS INC	$52.02	3,360,000	356.52%	51.37	52.04	50.79	45.40	N/A	50.85	33.90	23.35	36.88	20.64	-0.47	-0.08	-0.39	2.00
NOC	NORTHROP GRUMMAN CORP	$527.39	1,259,000	14.45%	522.79	531.80	543.05	543.46	601.04	44.39	39.89	41.74	83.61	85.79	-7.06	-7.28	0.22	0.20
AIR	AAR CORP	$112.77	1,424,000	245.63%	120.99	126.29	134.30	127.58	115.89	31.75	9.49	7.78	7.34	5.74	-6.07	-4.58	-1.49	1.11
BWXT	BWX TECHNOLOGIES INC	$147.52	2,800,000	232.94%	151.21	152.99	163.85	181.81	191.63	38.08	11.73	11.57	10.59	11.66	-5.14	-4.86	-0.28	0.89
POWW	OUTDOOR HOLDING CO	$2.19	1,886,000	338.60%	2.14	2.17	2.21	2.16	2.04	51.61	33.33	25.70	62.58	57.31	-0.02	-0.02	0.00	1.25
ELMT	ELMET GROUP CO	$22.98	1,199,000	-12.23%	18.81	18.03	16.59	16.87	N/A	68.22	64.53	56.16	84.06	76.96	1.16	0.55	0.61	3.36
TXT	TEXTRON INC	$79.69	3,714,000	95.68%	80.13	80.79	85.85	88.51	89.99	37.48	43.06	45.20	84.79	90.93	-1.62	-1.93	0.32	1.01
WWD	WOODWARD INC	$321.74	1,732,000	130.93%	329.71	335.09	362.81	372.43	362.03	34.24	19.28	15.07	11.89	4.95	-11.46	-10.97	-0.49	1.02
KRMN	KARMAN HOLDINGS INC	$35.75	11,996,000	173.44%	36.47	41.18	47.99	52.25	70.43	30.98	15.10	15.63	76.35	66.86	-4.44	-4.19	-0.25	1.66
AZ	A2Z CUST2MATE SOLUTIONS CORP	$5.65	423,000	-19.12%	5.81	6.17	6.14	6.24	6.42	39.29	24.72	17.23	19.50	12.35	-0.23	-0.15	-0.08	1.22
SIF	SIFCO INDUSTRIES INC	$20.62	98,000	284.31%	21.06	21.38	22.85	21.50	15.84	42.13	16.58	17.94	7.56	7.99	-0.49	-0.50	0.01	0.46
GE	GE AEROSPACE	$314.27	10,448,000	96.02%	321.05	330.99	348.09	336.84	322.46	34.19	17.01	11.97	42.97	27.61	-11.08	-9.43	-1.65	1.08
CODA	CODA OCTOPUS GROUP INC	$10.84	233,000	39.52%	10.39	10.24	10.19	10.63	11.11	64.04	78.37	78.81	99.02	98.17	0.14	0.05	0.09	0.49
AXON	AXON ENTERPRISE INC	$447.76	1,201,000	26.42%	477.12	527.96	548.51	499.50	503.00	35.50	12.45	11.68	23.73	17.82	-32.51	-22.95	-9.56	1.22
CW	CURTISS WRIGHT CORP	$568.27	923,000	168.31%	564.33	580.75	663.56	702.62	676.94	34.29	40.04	31.28	97.26	86.71	-30.12	-34.44	4.33	0.92
HONA	HONEYWELL AEROSPACE INC	$163.60	13,229,000	73.54%	159.75	159.54	179.26	N/A	N/A	48.27	81.83	76.80	94.58	91.86	-4.36	-7.07	2.71	1.69
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$47.46	5,643,000	55.16%	47.43	49.60	51.76	53.91	70.49	37.70	27.18	25.56	45.39	38.84	-1.96	-1.83	-0.13	1.26
PL	PLANET LABS PBC	$16.42	10,120,000	-9.45%	16.79	18.65	21.18	28.81	27.21	29.82	16.29	11.50	44.70	23.38	-1.76	-1.71	-0.06	1.88
MRCY	MERCURY SYSTEMS INC	$85.28	1,731,000	200.52%	83.44	85.46	96.14	99.81	91.32	42.23	63.96	61.29	89.58	87.78	-3.92	-4.84	0.92	0.99
MDA	MDA SPACE LTD	$30.07	1,588,000	72.05%	29.37	29.35	31.19	34.75	N/A	48.52	72.17	60.08	87.27	77.49	-0.70	-0.96	0.26	2.52
LYNX	LYNTRIS INC	$13.69	293,000	-27.11%	13.14	13.58	N/A	N/A	N/A	63.62	63.00	56.05	N/A	N/A	N/A	N/A	N/A	-0.47
VSEC	VSE CORP	$174.83	726,000	13.08%	189.66	200.83	207.69	199.87	198.33	33.55	8.56	9.09	14.74	12.09	-9.99	-6.69	-3.31	1.33
FBDT	FIRST BREACH INC	$0.88	1,135,000	-62.66%	0.78	1.06	N/A	N/A	N/A	17.53	40.94	38.83	N/A	N/A	N/A	N/A	N/A	-2.15
AADX	APPLIED AEROSPACE & DEFENSE INC	$12.76	8,209,000	439.36%	12.30	12.97	16.43	N/A	N/A	38.92	49.10	35.87	100.00	97.07	-1.28	-1.50	0.22	2.46
AVEX	AEVEX CORP	$16.20	2,193,000	170.74%	16.34	16.93	17.44	20.86	N/A	43.06	31.04	26.51	67.26	53.52	-0.64	-0.62	-0.02	2.46
SPCX	SPACE EXPLORATION TECHNOLOGIES CORP	$152.71	333,663,000	297.28%	149.84	145.33	134.63	N/A	N/A	60.16	80.95	70.41	55.72	37.60	3.83	3.28	0.55	3.28
AVAV	AEROVIRONMENT INC	$159.95	2,431,000	36.50%	151.82	150.31	157.41	164.96	206.94	53.65	80.81	82.48	93.40	97.07	-1.24	-3.30	2.06	1.14
SPAI	SAFE PRO GROUP INC	$4.37	107,000	-10.83%	4.56	4.80	4.50	4.56	4.59	43.71	11.22	8.51	13.73	8.21	-0.09	-0.01	-0.08	1.55
BETA	BETA TECHNOLOGIES INC	$20.90	25,856,000	551.61%	20.88	21.21	21.05	18.94	20.33	48.21	45.75	40.52	70.09	62.57	-0.26	-0.18	-0.07	2.99
BA	BOEING CO	$198.20	9,833,000	-16.60%	206.18	208.11	216.25	219.87	221.20	33.48	13.63	26.92	11.05	39.00	-4.76	-3.90	-0.86	1.15
RDW	REDWIRE CORP	$10.74	31,566,000	143.25%	10.83	10.91	10.70	12.40	10.83	46.93	58.02	49.88	73.01	70.56	-0.14	-0.16	0.02	2.17
FLY	FIREFLY AEROSPACE INC	$20.97	9,197,000	278.95%	21.32	21.63	22.24	29.12	27.69	43.79	36.76	26.77	53.09	42.26	-0.75	-0.77	0.02	3.28
HAWK	HAWKEYE 360 INC	$16.27	3,632,000	129.44%	16.70	18.19	20.13	N/A	N/A	34.56	17.51	14.82	52.32	32.01	-1.39	-1.34	-0.05	2.13
DPC	DPC HOLDINGS PLC	$40.76	2,321,000	255.44%	41.37	42.25	46.13	N/A	N/A	42.88	28.91	26.33	52.96	47.51	-1.88	-1.85	-0.04	1.87
MNTS	MOMENTUS INC	$4.18	923,000	-13.17%	4.12	4.16	4.52	6.70	6.77	45.44	49.80	38.15	76.25	58.65	-0.17	-0.23	0.06	2.22
SPCE	VIRGIN GALACTIC HOLDINGS INC	$3.07	16,592,000	85.68%	3.01	2.99	2.89	3.12	3.02	53.39	53.87	50.13	54.45	49.74	0.01	0.01	0.01	2.12
PRZO	PARAZERO TECHNOLOGIES LTD	$0.68	336,000	-7.18%	0.75	0.77	0.63	0.61	0.85	46.20	18.29	12.97	7.19	4.06	0.02	0.04	-0.03	0.91
AIRO	AIRO GROUP HOLDINGS INC	$7.00	1,200,000	21.46%	7.19	7.47	7.52	7.54	8.61	42.49	36.51	36.44	66.27	65.98	-0.21	-0.17	-0.03	2.95
RKLB	ROCKET LAB CORP	$64.57	32,057,000	46.01%	64.03	64.98	69.89	88.47	80.48	43.93	62.59	52.89	84.48	83.82	-2.49	-3.10	0.61	2.15
SATL	SATELLOGIC INC	$5.11	13,924,000	119.62%	5.00	5.02	4.72	5.96	4.93	51.29	61.51	56.16	71.77	68.47	0.02	-0.01	0.03	1.32
SIDU	SIDUS SPACE INC	$1.97	6,617,000	66.34%	2.01	2.12	2.12	2.85	2.77	39.76	21.47	16.65	38.62	25.28	-0.09	-0.08	-0.01	1.87
VOYG	VOYAGER TECHNOLOGIES INC	$35.87	5,326,000	329.86%	34.51	34.49	33.33	34.85	31.51	53.40	71.49	63.00	93.82	86.76	-0.03	-0.17	0.14	3.19
HOVR	NEW HORIZON AIRCRAFT LTD	$1.66	200,000	-48.85%	1.65	1.70	1.78	2.02	1.92	43.08	44.62	32.84	82.92	63.95	-0.06	-0.06	0.00	1.33
LUNR	INTUITIVE MACHINES INC	$13.92	14,882,000	80.04%	14.47	15.18	15.14	21.58	20.03	40.21	27.14	20.45	37.36	21.71	-0.65	-0.57	-0.09	0.95
PEW	GRABAGUN DIGITAL HOLDINGS INC	$2.15	196,000	18.79%	2.22	2.29	2.45	2.58	2.82	33.97	18.63	13.11	26.57	12.42	-0.10	-0.08	-0.01	0.40
YSS	YORK SPACE SYSTEMS INC	$8.55	21,830,000	413.16%	8.23	8.65	12.37	20.71	N/A	39.01	55.77	39.47	96.93	87.59	-1.22	-1.56	0.34	2.71
EVEX	EVE HOLDING INC	$2.04	1,460,000	56.48%	2.12	2.24	2.40	2.65	3.10	34.62	10.99	10.07	35.98	23.91	-0.13	-0.11	-0.01	0.97
FJET	STARFIGHTERS SPACE INC	$1.64	3,209,000	114.36%	2.07	2.76	3.47	4.67	N/A	15.42	0.17	1.74	0.00	0.83	-0.57	-0.49	-0.08	3.29
KITT	NAUTICUS ROBOTICS INC	$0.64	348,000	68.12%	0.65	0.72	0.84	1.26	3.82	35.39	12.67	8.96	45.81	34.49	-0.08	-0.08	-0.00	1.01
BYRN	BYRNA TECHNOLOGIES INC	$3.68	288,000	48.45%	3.67	3.63	3.87	4.84	8.94	45.84	72.33	73.38	90.52	95.72	-0.11	-0.16	0.05	1.17
EH	EHANG HOLDINGS LTD	$4.58	773,000	82.31%	4.58	4.67	5.12	6.75	9.53	39.92	44.86	38.54	88.73	79.90	-0.22	-0.26	0.03	1.74
ASTC	ASTROTECH CORP	$6.13	25,400	-14.19%	6.81	6.99	7.55	10.40	6.83	34.28	11.11	8.94	11.71	6.05	-0.51	-0.45	-0.06	0.48
ACHR	ARCHER AVIATION INC	$5.26	46,572,000	81.28%	5.49	5.68	5.50	5.63	6.36	41.89	20.33	19.85	19.39	15.13	-0.11	-0.04	-0.07	2.14
DPRO	DRAGANFLY INC	$5.62	1,307,000	1.24%	5.67	5.30	4.77	5.26	6.16	56.89	53.52	53.77	26.94	28.92	0.25	0.26	-0.01	1.28
EVTL	VERTICAL AEROSPACE LTD	$0.63	16,985,000	333.29%	0.59	0.64	1.01	1.65	3.04	36.26	44.69	33.64	100.00	98.41	-0.12	-0.15	0.03	1.44
MRLN	MERLIN INC	$1.95	8,043,000	-25.67%	2.82	3.02	3.52	5.31	7.90	25.83	5.80	14.83	0.00	20.47	-0.39	-0.30	-0.09	0.55
GPUS	HYPERSCALE DATA INC	$0.18	23,047,000	11.18%	0.19	0.24	0.17	0.17	0.19	47.56	5.36	5.72	3.49	2.80	0.00	0.01	-0.01	1.31
FACT	FACT II ACQUISITION CORP	$10.71	0	N/A	10.71	10.70	10.67	10.65	10.56	56.91	63.87	63.93	0.00	19.39	0.01	0.01	-0.00	0.01
VHUB	VENHUB GLOBAL INC	$0.68	2,532,000	646.90%	0.80	0.82	0.80	1.00	N/A	37.63	5.14	10.07	0.00	3.32	-0.01	-0.00	-0.01	1.73
DUKR	DUKE ROBOTICS CORP	$5.46	42,500	199.30%	5.37	5.51	5.44	N/A	N/A	49.56	29.38	28.18	31.88	27.99	-0.05	-0.03	-0.01	1.13
VWAV	VISIONWAVE HOLDINGS INC	$0.26	5,519,000	113.58%	0.46	0.67	1.68	3.47	5.99	23.75	1.35	6.20	23.41	38.64	-0.37	-0.41	0.04	0.22
AIRI	AIR INDUSTRIES GROUP	$2.55	43,300	392.05%	2.63	2.61	2.62	2.82	3.01	44.35	57.26	64.23	54.25	62.89	0.01	-0.00	0.01	0.50
DFSC	DEFSEC TECHNOLOGIES INC	$1.21	106,000	-41.11%	1.36	1.50	1.60	2.54	2.38	37.30	5.97	4.19	0.00	0.00	-0.14	-0.11	-0.03	1.43

Defense Stocks FAQ

What are the best defense stocks to buy right now in Sep 2026?

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best defense stocks to buy right now are:

1. Astronics (NASDAQ:ATRO)

Astronics (NASDAQ:ATRO) is the #1 top defense stock out of 91 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Astronics (NASDAQ:ATRO) is: Value: C, Growth: A, Momentum: C, Sentiment: B, Safety: B, Financials: B, and AI: C.

Astronics (NASDAQ:ATRO) has a Due Diligence Score of 54, which is 20 points higher than the defense industry average of 34.

ATRO passed 18 out of 33 due diligence checks and has strong fundamentals. Astronics has seen its stock return 56.75% over the past year, overperforming other defense stocks by 57 percentage points.

Astronics has an average 1 year price target of $100.00, an upside of 52.18% from Astronics's current stock price of $65.71.

Astronics stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Astronics, 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. Smith & Wesson Brands (NASDAQ:SWBI)

Smith & Wesson Brands (NASDAQ:SWBI) is the #2 top defense stock out of 91 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Smith & Wesson Brands (NASDAQ:SWBI) is: Value: B, Growth: B, Momentum: C, Sentiment: A, Safety: C, Financials: B, and AI: C.

Smith & Wesson Brands (NASDAQ:SWBI) has a Due Diligence Score of 41, which is 7 points higher than the defense industry average of 34.

SWBI passed 14 out of 38 due diligence checks and has strong fundamentals. Smith & Wesson Brands has seen its stock return 43.73% over the past year, overperforming other defense stocks by 44 percentage points.

Smith & Wesson Brands has an average 1 year price target of $16.50, an upside of 20.97% from Smith & Wesson Brands's current stock price of $13.64.

Smith & Wesson Brands stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Smith & Wesson Brands, 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.

3. Sturm Ruger & Co (NYSE:RGR)

Sturm Ruger & Co (NYSE:RGR) is the #3 top defense stock out of 91 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Sturm Ruger & Co (NYSE:RGR) is: Value: C, Growth: A, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: B.

Sturm Ruger & Co (NYSE:RGR) has a Due Diligence Score of 42, which is 8 points higher than the defense industry average of 34.

RGR passed 16 out of 38 due diligence checks and has strong fundamentals. Sturm Ruger & Co has seen its stock return 4.25% over the past year, overperforming other defense stocks by 4 percentage points.

What are the defense stocks with highest dividends?

Out of 24 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

1. Smith & Wesson Brands (NASDAQ:SWBI)

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 3.81%, which is 3 percentage points higher than the defense industry average of 1.06%. Smith & Wesson Brands's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Smith & Wesson Brands's dividend has shown consistent growth over the last 10 years.

Smith & Wesson Brands's dividend payout ratio of 94.5% indicates that its dividend yield might not be sustainable for the long-term.

2. Lockheed Martin (NYSE:LMT)

Lockheed Martin (NYSE:LMT) has an annual dividend yield of 2.59%, which is 2 percentage points higher than the defense industry average of 1.06%. Lockheed Martin's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Lockheed Martin's dividend has shown consistent growth over the last 10 years.

Lockheed Martin's dividend payout ratio of 50.1% indicates that its dividend yield is sustainable for the long-term.

3. L3harris Technologies (NYSE:LHX)

L3harris Technologies (NYSE:LHX) has an annual dividend yield of 2%, which is 1 percentage points higher than the defense industry average of 1.06%. L3harris Technologies's dividend payout is stable, having never dropped by more than 10% in the last 10 years. L3harris Technologies's dividend has shown consistent growth over the last 10 years.

L3harris Technologies's dividend payout ratio of 49.1% indicates that its dividend yield is sustainable for the long-term.

Why are defense stocks down?

Defense stocks were down -0.12% in the last day, and down -1.48% over the last week. Visionwave Holdings was the among the top losers in the aerospace & defense industry, dropping -28.14% yesterday.

VisionWave Holdings shares are trading lower after the company announced it will effect a 1-for-20 reverse stock split.

What are the most undervalued defense stocks?

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued defense stocks right now are:

1. Textron (NYSE:TXT)

Textron (NYSE:TXT) is the most undervalued defense stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Textron has a valuation score of 29, which is 11 points higher than the defense industry average of 18. It passed 2 out of 7 valuation due diligence checks.

Textron's stock has dropped -5.04% in the past year. It has underperformed other stocks in the defense industry by -5 percentage points.

2. V2x (NYSE:VVX)

V2x (NYSE:VVX) is the second most undervalued defense stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

V2x has a valuation score of 43, which is 25 points higher than the defense industry average of 18. It passed 3 out of 7 valuation due diligence checks.

V2x's stock has gained 29.78% in the past year. It has overperformed other stocks in the defense industry by 30 percentage points.

3. Lockheed Martin (NYSE:LMT)

Lockheed Martin (NYSE:LMT) is the third most undervalued defense stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Lockheed Martin has a valuation score of 14, which is -4 points higher than the defense industry average of 18. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates LMT a Valuation Rating of "B".

Lockheed Martin's stock has gained 12.62% in the past year. It has overperformed other stocks in the defense industry by 13 percentage points.

Are defense stocks a good buy now?

66.67% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 33.75% over the next year.

5.95% of defense stocks have a Zen Rating of A (Strong Buy), 17.86% of defense stocks are rated B (Buy), 46.43% are rated C (Hold), 17.86% are rated D (Sell), and 11.9% are rated F (Strong Sell).

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

The average P/E ratio of the aerospace & defense industry is 14.28x.

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.

Sectors & Industries IndustrialsAerospace & Defense
Best Defense Stocks to Buy Now (2026)
Top defense stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best defense stocks to buy now. Learn More.

Defense Stocks FAQ

1. Astronics (NASDAQ:ATRO)

2. Smith & Wesson Brands (NASDAQ:SWBI)

3. Sturm Ruger & Co (NYSE:RGR)

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. Lockheed Martin (NYSE:LMT)

3. L3harris Technologies (NYSE:LHX)

1. Textron (NYSE:TXT)

2. V2x (NYSE:VVX)

3. Lockheed Martin (NYSE:LMT)

Company

Stock Tools

Stock Ideas

Sectors & IndustriesIndustrialsAerospace & DefenseBest Defense Stocks to Buy Now (2026)Top defense stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best defense stocks to buy now. Learn More.

Defense Stocks FAQ

1. Astronics (NASDAQ:ATRO)

2. Smith & Wesson Brands (NASDAQ:SWBI)

3. Sturm Ruger & Co (NYSE:RGR)

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. Lockheed Martin (NYSE:LMT)

3. L3harris Technologies (NYSE:LHX)

1. Textron (NYSE:TXT)

2. V2x (NYSE:VVX)

3. Lockheed Martin (NYSE:LMT)

Company

Stock Tools

Stock Ideas

Sectors & Industries IndustrialsAerospace & Defense
Best Defense Stocks to Buy Now (2026)
Top defense stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best defense stocks to buy now. Learn More.