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 C and is the 78th 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	$73.49	545,000	16.70%	74.97	78.87	74.73	77.54	72.44	44.24	27.37	24.81	45.37	43.17	-0.77	-0.27	-0.50	1.26
SWBI	SMITH & WESSON BRANDS INC	$13.29	635,000	-24.85%	12.92	13.44	14.31	14.70	13.27	44.72	58.44	47.27	97.79	82.86	-0.38	-0.44	0.05	0.79
RGR	STURM RUGER & CO INC	$37.59	206,000	101.96%	37.85	37.96	38.07	38.99	37.85	46.59	39.80	44.02	41.84	46.99	-0.06	-0.06	0.00	0.51
MOG.A	MOOG INC	$366.72	113,000	-22.07%	370.52	388.94	399.37	374.23	331.31	38.02	18.69	16.18	28.41	23.10	-10.71	-8.96	-1.75	1.00
EMBJ	EMBRAER SA	$74.75	1,525,000	62.23%	73.39	74.63	70.36	65.27	66.09	57.84	45.86	37.51	48.39	38.13	0.87	1.20	-0.33	1.27
HXL	HEXCEL CORP	$89.82	1,092,000	84.46%	92.20	94.96	99.96	96.17	88.89	28.91	9.33	8.69	7.02	13.91	-2.81	-2.50	-0.31	1.08
RTX	RTX CORP	$198.12	2,651,000	-20.13%	203.49	209.97	208.26	193.93	193.46	32.63	4.71	4.73	2.61	2.38	-3.53	-1.46	-2.07	0.56
DCO	DUCOMMUN INC	$167.14	218,000	37.97%	170.27	182.49	181.42	166.36	140.34	37.01	15.92	15.18	12.49	10.65	-5.43	-3.12	-2.31	0.93
CVU	CPI AEROSTRUCTURES INC	$5.16	49,000	81.48%	5.20	5.36	5.15	4.79	4.29	47.12	25.78	22.33	26.04	19.64	-0.01	0.03	-0.04	0.76
LMT	LOCKHEED MARTIN CORP	$530.12	1,071,000	-30.86%	541.60	561.70	556.36	539.23	557.75	38.86	9.29	7.50	27.15	17.27	-10.86	-5.44	-5.42	0.22
DRS	LEONARDO DRS INC	$36.31	695,000	21.50%	37.31	39.65	43.02	43.49	41.97	26.22	4.65	4.43	19.80	11.93	-2.15	-1.96	-0.19	0.93
SARO	STANDARDAERO INC	$23.65	2,570,000	-1.49%	24.47	25.27	27.32	26.76	27.76	31.11	13.06	18.27	46.54	59.07	-0.99	-0.94	-0.04	1.17
HWM	HOWMET AEROSPACE INC	$227.91	4,429,000	-22.92%	249.71	263.82	273.06	266.02	245.99	28.71	5.82	16.08	10.06	20.98	-11.25	-7.23	-4.01	1.13
VVX	V2X INC	$72.56	689,000	15.03%	75.50	77.77	79.16	77.44	70.89	36.37	8.18	6.96	8.74	7.29	-2.06	-1.44	-0.62	0.76
CDRE	CADRE HOLDINGS INC	$28.77	224,000	-17.34%	29.58	31.43	30.95	30.27	34.96	37.49	16.54	21.19	21.94	26.85	-0.76	-0.39	-0.36	0.89
GD	GENERAL DYNAMICS CORP	$354.25	851,000	-6.28%	365.30	376.57	378.22	360.27	354.73	29.42	3.43	4.73	3.41	2.11	-6.97	-3.48	-3.49	0.54
NPK	NATIONAL PRESTO INDUSTRIES INC	$147.97	65,000	-11.44%	148.47	148.28	135.45	134.76	128.67	57.06	32.52	30.79	13.15	11.49	3.16	4.29	-1.13	0.61
HEI	HEICO CORP	$312.49	595,000	38.05%	324.48	342.46	349.91	329.18	322.76	24.74	3.89	5.26	0.34	3.58	-11.04	-7.26	-3.78	0.87
LHX	L3HARRIS TECHNOLOGIES INC	$248.37	1,675,000	33.79%	258.90	266.47	280.34	294.48	313.59	26.51	5.56	5.64	0.00	3.54	-8.57	-7.45	-1.12	0.40
IA	INNOVATIVE SOLUTIONS & SUPPORT INC	$18.80	561,000	126.21%	18.99	20.58	19.63	19.04	19.73	44.10	13.39	10.28	20.50	14.97	-0.48	-0.14	-0.34	0.85
ESLT	ELBIT SYSTEMS LTD	$723.91	76,000	-11.11%	709.71	732.57	767.74	790.59	754.41	42.91	30.76	18.97	85.38	56.52	-20.61	-21.36	0.74	0.44
PKE	PARK AEROSPACE CORP	$30.71	242,000	0.83%	31.71	33.43	34.59	34.20	29.51	35.34	17.94	17.56	55.72	43.66	-1.14	-0.92	-0.22	0.75
OPXS	OPTEX SYSTEMS HOLDINGS INC	$10.49	75,400	139.37%	10.19	10.61	11.58	11.59	12.65	45.68	50.56	49.99	67.13	64.40	-0.38	-0.42	0.04	0.75
LOAR	LOAR HOLDINGS INC	$64.76	452,000	-14.39%	68.77	71.94	72.25	68.13	67.57	32.12	4.68	7.82	3.44	8.79	-1.71	-0.82	-0.89	1.46
AIR	AAR CORP	$124.47	231,000	-37.06%	127.87	134.25	136.89	127.37	114.81	39.36	20.41	20.42	42.18	38.01	-3.80	-2.68	-1.12	1.11
WWD	WOODWARD INC	$332.76	556,000	50.68%	339.85	346.42	373.39	375.41	360.90	35.89	16.76	23.82	59.71	72.64	-9.90	-10.71	0.80	1.01
TDG	TRANSDIGM GROUP INC	$1,126.88	393,000	28.01%	1,157.13	1,187.42	1,230.31	1,229.96	1,266.24	30.40	3.25	6.85	1.15	7.09	-28.28	-23.30	-4.99	0.98
BWXT	BWX TECHNOLOGIES INC	$152.49	872,000	38.41%	156.57	158.68	168.88	186.31	192.46	40.65	54.12	56.02	81.04	88.05	-3.92	-4.61	0.68	0.89
TATT	TAT TECHNOLOGIES LTD	$37.85	71,500	-58.19%	37.95	38.40	40.55	40.12	43.84	45.97	53.87	66.19	70.09	86.38	-0.48	-0.76	0.27	0.67
NOC	NORTHROP GRUMMAN CORP	$518.95	934,000	33.62%	528.35	547.14	544.71	547.82	602.17	37.58	7.81	6.43	14.22	8.41	-9.77	-5.32	-4.45	0.21
HII	HUNTINGTON INGALLS INDUSTRIES INC	$281.67	404,000	13.17%	289.07	298.68	297.53	308.03	347.57	35.47	6.41	6.92	8.28	7.24	-6.02	-3.76	-2.26	0.59
ARXS	ARXIS INC	$51.98	554,000	-21.86%	52.52	53.84	50.06	44.56	N/A	47.58	33.42	36.76	40.58	45.30	0.25	0.74	-0.49	2.01
CODA	CODA OCTOPUS GROUP INC	$9.82	147,000	53.13%	10.07	10.13	10.07	10.71	11.04	41.49	21.57	30.49	16.85	28.65	-0.06	-0.03	-0.02	0.49
TXT	TEXTRON INC	$79.20	1,719,000	-45.01%	80.20	82.73	87.18	89.06	90.04	32.89	16.59	13.27	33.15	21.76	-2.43	-2.29	-0.13	1.01
POWW	OUTDOOR HOLDING CO	$2.12	436,000	-28.76%	2.16	2.20	2.24	2.15	2.03	43.41	16.84	16.37	27.93	23.45	-0.02	-0.02	-0.01	1.25
CW	CURTISS WRIGHT CORP	$559.74	315,000	-11.02%	575.72	616.89	687.94	712.04	676.60	26.58	7.00	7.46	35.51	28.32	-38.85	-36.67	-2.18	0.92
CAE	CAE INC	$23.68	861,000	-12.32%	24.15	24.91	25.43	25.51	27.48	36.94	28.63	30.75	49.69	54.15	-0.52	-0.42	-0.10	1.17
ELMT	ELMET GROUP CO	$15.92	193,000	-19.25%	16.52	17.27	16.19	N/A	N/A	45.08	20.54	23.97	18.21	23.00	-0.06	0.12	-0.18	3.52
MRCY	MERCURY SYSTEMS INC	$80.43	422,000	-46.45%	84.35	91.83	100.29	99.58	90.83	31.62	6.47	6.97	18.16	17.55	-6.04	-5.24	-0.80	0.99
VSEC	VSE CORP	$192.64	249,000	-6.74%	204.41	215.89	212.60	200.36	198.16	38.36	21.51	26.11	17.73	23.28	-4.91	-1.90	-3.01	1.34
KRMN	KARMAN HOLDINGS INC	$34.39	4,104,000	-7.69%	40.58	48.22	50.00	54.75	71.29	20.18	1.15	2.08	0.00	0.09	-4.60	-3.00	-1.60	1.68
SIF	SIFCO INDUSTRIES INC	$20.91	90,000	76.47%	21.64	21.30	23.19	21.13	15.40	43.04	22.99	25.21	15.62	22.13	-0.53	-0.53	0.00	0.46
GE	GE AEROSPACE	$324.15	3,464,000	-31.02%	333.67	345.26	354.58	335.13	321.81	34.93	10.99	12.51	13.35	20.58	-8.25	-6.12	-2.13	1.08
HONA	HONEYWELL AEROSPACE INC	$153.75	3,156,000	-0.72%	156.47	160.49	187.70	N/A	N/A	38.41	14.92	19.96	48.81	58.83	-9.34	-10.49	1.15	1.78
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$46.98	3,388,000	-26.11%	49.16	53.84	52.29	55.03	71.28	35.05	5.64	5.98	4.02	3.62	-2.13	-1.14	-0.98	1.26
AZ	A2Z CUST2MATE SOLUTIONS CORP	$5.73	308,000	30.51%	6.14	6.69	6.19	6.36	6.44	39.01	10.81	13.06	11.75	15.09	-0.12	0.01	-0.13	1.22
AXON	AXON ENTERPRISE INC	$478.85	928,000	25.41%	533.19	574.53	565.59	495.73	505.01	35.81	2.99	7.54	2.26	7.80	-20.14	-5.02	-15.12	1.22
PL	PLANET LABS PBC	$16.69	11,062,000	-16.91%	18.84	20.85	22.77	30.07	27.06	24.16	4.94	6.80	0.00	0.00	-1.71	-1.37	-0.33	1.87
LYNX	LYNTRIS INC	$12.39	568,000	-12.62%	13.27	N/A	N/A	N/A	N/A	56.04	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-0.53
AVAV	AEROVIRONMENT INC	$147.07	8,706,000	73.63%	146.66	156.97	158.85	167.71	210.47	43.51	19.04	15.60	42.52	26.28	-5.77	-4.61	-1.16	1.14
AADX	APPLIED AEROSPACE & DEFENSE INC	$11.54	1,407,000	-38.96%	12.70	14.53	17.65	N/A	N/A	24.57	5.42	9.11	29.98	30.97	-1.77	-1.59	-0.17	2.53
AVEX	AEVEX CORP	$15.91	884,000	-3.28%	16.89	18.03	17.71	21.83	N/A	40.24	25.76	25.78	40.38	39.81	-0.70	-0.45	-0.25	2.51
MDA	MDA SPACE LTD	$28.88	1,290,000	12.08%	29.09	30.68	32.38	34.98	N/A	40.36	29.97	28.33	71.67	66.59	-1.14	-1.14	-0.01	2.54
FBDT	FIRST BREACH INC	$0.66	504,000	81.29%	0.77	N/A	N/A	N/A	N/A	3.55	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-1.78
SPCX	SPACE EXPLORATION TECHNOLOGIES CORP	$148.18	118,142,000	-2.03%	145.59	142.50	135.20	N/A	N/A	60.29	78.28	82.30	56.66	72.25	3.52	2.39	1.13	3.41
BA	BOEING CO	$204.80	4,616,000	5.53%	208.67	214.14	218.88	221.32	220.58	35.91	11.66	20.20	41.85	54.36	-4.08	-3.46	-0.62	1.15
BETA	BETA TECHNOLOGIES INC	$19.89	2,308,000	4.58%	20.65	22.71	20.65	18.65	20.49	42.49	17.52	23.79	19.01	24.66	-0.31	0.12	-0.44	2.94
SPAI	SAFE PRO GROUP INC	$4.58	42,000	-46.84%	4.84	5.11	4.45	4.56	4.60	46.05	17.97	22.72	9.43	16.35	0.04	0.13	-0.09	1.55
RDW	REDWIRE CORP	$10.87	13,887,000	11.39%	10.71	11.53	10.72	12.37	10.66	47.03	34.07	27.12	57.76	43.54	-0.21	-0.11	-0.10	2.16
FLY	FIREFLY AEROSPACE INC	$20.90	2,159,000	-2.84%	21.46	23.12	22.96	30.20	27.58	40.59	28.27	28.01	58.88	53.03	-0.79	-0.70	-0.09	3.27
HAWK	HAWKEYE 360 INC	$16.42	1,185,000	-37.96%	18.02	20.03	20.55	N/A	N/A	29.40	8.66	8.56	8.07	8.48	-1.44	-1.01	-0.43	2.11
DPC	DPC HOLDINGS PLC	$42.42	1,608,000	14.04%	42.49	44.82	47.01	N/A	N/A	44.52	41.05	42.26	63.77	64.59	-1.84	-1.64	-0.20	1.83
SPCE	VIRGIN GALACTIC HOLDINGS INC	$2.91	2,964,000	-27.50%	2.97	3.04	2.85	3.10	3.04	46.57	40.15	45.71	42.44	55.53	0.00	0.02	-0.01	2.11
MNTS	MOMENTUS INC	$4.02	446,000	-27.83%	4.16	4.28	4.77	6.81	6.99	39.35	25.60	30.36	53.68	73.97	-0.26	-0.31	0.05	2.21
PRZO	PARAZERO TECHNOLOGIES LTD	$0.80	614,000	-84.13%	0.83	0.75	0.61	0.62	0.87	57.94	66.70	68.89	28.64	37.06	0.07	0.07	-0.00	0.90
RKLB	ROCKET LAB CORP	$61.96	18,763,000	-29.14%	64.05	69.24	73.05	89.75	79.80	35.31	14.27	16.41	36.74	34.66	-3.68	-3.44	-0.24	2.14
AIRO	AIRO GROUP HOLDINGS INC	$6.94	332,000	0.30%	7.32	8.08	7.52	7.61	8.63	40.92	12.05	15.16	20.32	24.51	-0.24	-0.07	-0.16	2.95
SATL	SATELLOGIC INC	$4.70	4,172,000	-15.79%	4.87	5.21	4.72	6.06	4.82	45.38	39.27	34.63	45.21	37.98	-0.05	0.01	-0.06	1.31
SIDU	SIDUS SPACE INC	$2.00	3,636,000	13.31%	2.13	2.27	2.17	2.96	2.73	39.00	5.98	7.00	6.10	6.18	-0.07	-0.04	-0.03	1.87
VOYG	VOYAGER TECHNOLOGIES INC	$32.97	958,000	4.36%	33.76	36.55	33.16	34.56	31.10	43.91	22.58	22.04	37.99	35.00	-0.44	0.06	-0.51	3.21
HOVR	NEW HORIZON AIRCRAFT LTD	$1.62	395,000	-27.26%	1.68	1.79	1.80	2.03	1.91	36.59	14.06	17.81	28.71	34.03	-0.07	-0.05	-0.02	1.33
LUNR	INTUITIVE MACHINES INC	$14.62	6,774,000	0.06%	15.12	16.58	15.65	22.38	19.88	41.30	16.01	15.59	22.64	19.78	-0.50	-0.34	-0.16	0.95
PEW	GRABAGUN DIGITAL HOLDINGS INC	$2.32	65,000	-19.25%	2.32	2.41	2.53	2.63	2.86	40.17	28.59	27.53	53.73	52.93	-0.07	-0.06	-0.00	0.40
YSS	YORK SPACE SYSTEMS INC	$7.45	3,610,000	21.18%	8.67	9.35	14.15	22.45	N/A	25.33	9.23	15.01	39.56	60.91	-1.72	-1.97	0.24	2.69
FJET	STARFIGHTERS SPACE INC	$2.01	2,166,000	-70.35%	2.86	3.41	3.81	4.93	N/A	18.26	2.45	3.77	0.00	0.79	-0.47	-0.32	-0.15	3.38
KITT	NAUTICUS ROBOTICS INC	$0.64	404,000	-63.54%	0.73	0.81	0.90	1.40	4.01	32.16	13.31	11.75	36.48	26.17	-0.09	-0.07	-0.01	1.00
ASTC	ASTROTECH CORP	$7.21	31,500	12.50%	7.23	7.51	8.00	10.22	6.73	43.07	47.23	44.03	77.97	84.67	-0.35	-0.44	0.09	0.48
EH	EHANG HOLDINGS LTD	$4.43	532,000	-15.29%	4.57	5.02	5.29	7.12	9.82	33.65	17.50	21.10	43.12	42.21	-0.29	-0.28	-0.02	1.74
BYRN	BYRNA TECHNOLOGIES INC	$3.53	174,000	0.58%	3.55	3.70	4.16	4.99	9.36	40.77	46.11	45.32	75.69	76.82	-0.21	-0.23	0.02	1.17
EVEX	EVE HOLDING INC	$2.10	976,000	25.29%	2.23	2.42	2.46	2.69	3.15	33.62	10.73	14.91	8.43	13.67	-0.11	-0.08	-0.03	0.96
ACHR	ARCHER AVIATION INC	$5.45	23,423,000	4.54%	5.69	6.00	5.45	5.66	6.42	44.00	14.64	20.36	11.98	19.17	-0.01	0.08	-0.09	2.13
DPRO	DRAGANFLY INC	$5.47	1,185,000	22.80%	5.51	5.00	4.71	5.29	6.21	56.41	67.20	76.69	54.77	69.04	0.35	0.23	0.11	1.28
MRLN	MERLIN INC	$3.02	919,000	26.76%	3.18	3.34	3.79	5.90	8.15	39.51	47.13	56.12	73.54	87.28	-0.25	-0.27	0.03	0.54
EVTL	VERTICAL AEROSPACE LTD	$0.55	5,102,000	82.87%	0.62	0.70	1.15	1.76	3.16	21.12	5.73	7.56	11.28	18.14	-0.17	-0.19	0.02	1.45
DUKR	DUKE ROBOTICS CORP	$5.37	14,200	-10.13%	5.54	5.55	5.44	N/A	N/A	45.23	21.16	32.59	12.24	19.98	-0.03	0.01	-0.03	1.12
FACT	FACT II ACQUISITION CORP	$10.71	26,400	473.91%	10.70	10.69	10.66	10.64	10.55	58.96	56.88	49.67	87.94	89.88	0.01	0.01	0.00	0.01
GPUS	HYPERSCALE DATA INC	$0.19	29,598,000	-31.76%	0.23	0.21	0.16	0.17	0.19	48.24	26.98	26.57	30.46	30.09	0.01	0.02	-0.01	1.32
AIRI	AIR INDUSTRIES GROUP	$2.62	12,500	54.32%	2.62	2.55	2.66	2.85	3.02	51.06	66.67	67.42	71.21	71.61	-0.01	-0.02	0.01	0.51
VWAV	VISIONWAVE HOLDINGS INC	$0.49	3,460,000	4.28%	0.65	0.95	2.14	3.80	6.27	25.33	6.38	3.61	7.56	6.39	-0.45	-0.49	0.04	0.22
DFSC	DEFSEC TECHNOLOGIES INC	$1.44	809,000	1,023.61%	1.60	1.78	1.70	2.61	2.45	43.12	18.08	12.44	19.28	16.70	-0.08	-0.07	-0.02	1.43
VHUB	VENHUB GLOBAL INC	$0.85	152,000	-50.81%	0.84	0.79	0.83	1.00	N/A	55.25	41.52	47.58	48.36	54.18	0.01	-0.00	0.01	1.63

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: B, Sentiment: B, Safety: B, Financials: B, and AI: C.

Astronics (NASDAQ:ATRO) has a Due Diligence Score of 51, which is 18 points higher than the defense industry average of 33.

ATRO passed 17 out of 33 due diligence checks and has strong fundamentals. Astronics has seen its stock return 67.4% over the past year, overperforming other defense stocks by 64 percentage points.

Astronics has an average 1 year price target of $100.00, an upside of 36.07% from Astronics's current stock price of $73.49.

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 8 points higher than the defense industry average of 33.

SWBI passed 14 out of 38 due diligence checks and has strong fundamentals. Smith & Wesson Brands has seen its stock return 41.53% over the past year, overperforming other defense stocks by 38 percentage points.

Smith & Wesson Brands has an average 1 year price target of $16.50, an upside of 24.15% from Smith & Wesson Brands's current stock price of $13.29.

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: B, 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 9 points higher than the defense industry average of 33.

RGR passed 16 out of 38 due diligence checks and has strong fundamentals. Sturm Ruger & Co has seen its stock return 3.58% over the past year.

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 3.91%, 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 2.6%, 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 1.99%, 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 -0.25% in the last day, and down -2.67% over the last week.

We couldn't find a catalyst for why defense stocks are down.

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 43, which is 26 points higher than the defense industry average of 17. It passed 3 out of 7 valuation due diligence checks.

Textron's stock has dropped -2.25% 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 26 points higher than the defense industry average of 17. It passed 3 out of 7 valuation due diligence checks.

V2x's stock has gained 32.05% in the past year. It has overperformed other stocks in the defense industry by 29 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 -3 points higher than the defense industry average of 17. 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 14.28% in the past year. It has overperformed other stocks in the defense industry by 11 percentage points.

Are defense stocks a good buy now?

66.2% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 32.63% 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), 48.81% are rated C (Hold), 16.67% are rated D (Sell), and 10.71% 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 15.5x.

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.