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 +32.52% 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 146 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
SWBI	SMITH & WESSON BRANDS INC	$14.28	1,077,000	10.24%	14.96	15.09	14.96	13.70	11.63	38.20	16.59	16.33	7.57	9.16	-0.06	0.05	-0.10	0.80
VVX	V2X INC	$85.65	298,000	-39.31%	83.79	78.17	72.40	70.52	63.69	76.38	87.13	89.92	96.77	95.64	4.10	3.52	0.58	0.79
SIF	SIFCO INDUSTRIES INC	$20.19	29,000	-63.48%	20.38	19.86	17.25	14.10	10.41	57.03	53.23	58.36	8.29	13.40	0.91	1.09	-0.19	0.41
MOG.A	MOOG INC	$382.13	431,000	86.58%	371.23	344.20	322.71	318.27	268.63	75.57	89.11	88.76	90.53	88.86	18.32	14.89	3.43	1.00
ATRO	ASTRONICS CORP	$82.34	486,000	-11.64%	85.27	83.45	77.50	75.83	62.47	51.25	44.49	53.78	2.45	10.17	2.14	2.63	-0.48	1.27
PKE	PARK AEROSPACE CORP	$33.59	243,000	-56.14%	33.32	33.78	32.99	29.51	24.79	50.79	39.47	34.44	27.89	19.28	0.04	0.21	-0.17	0.73
HWM	HOWMET AEROSPACE INC	$249.49	2,683,000	-13.12%	252.74	257.05	252.06	244.27	220.55	46.11	35.88	32.41	37.26	29.02	-0.90	0.36	-1.26	1.14
CVU	CPI AEROSTRUCTURES INC	$4.71	141,000	35.58%	5.04	4.66	4.03	4.09	3.45	54.62	59.56	68.59	4.85	19.54	0.28	0.31	-0.03	0.75
AIR	AAR CORP	$117.36	281,000	15.16%	114.39	110.96	113.59	111.85	97.21	56.77	83.63	87.29	83.94	91.24	1.39	0.38	1.02	1.12
WWD	WOODWARD INC	$367.27	866,000	-35.61%	356.74	356.45	368.08	367.64	319.72	53.48	82.59	83.46	87.64	92.88	-0.34	-3.20	2.86	1.03
GD	GENERAL DYNAMICS CORP	$341.07	761,000	-46.52%	342.52	341.68	339.83	347.16	342.84	49.37	47.17	52.27	43.45	51.47	0.52	0.54	-0.02	0.56
HXL	HEXCEL CORP	$91.57	497,000	-16.61%	89.81	89.12	88.49	86.79	78.20	55.57	82.17	78.16	83.95	80.35	0.38	0.10	0.28	1.10
ESLT	ELBIT SYSTEMS LTD	$818.97	65,600	-4.93%	845.86	814.03	843.29	815.67	665.77	48.06	51.28	52.63	50.69	53.04	2.09	0.31	1.78	0.44
CODA	CODA OCTOPUS GROUP INC	$11.13	102,000	-17.74%	12.27	11.99	12.02	12.31	10.62	38.81	14.78	27.84	7.59	20.76	-0.06	0.06	-0.12	0.47
RTX	RTX CORP	$177.41	6,036,000	-3.07%	177.79	176.83	182.84	191.64	181.62	48.04	65.27	73.30	77.24	86.63	-0.64	-1.48	0.85	0.59
LHX	L3HARRIS TECHNOLOGIES INC	$303.00	794,000	38.09%	308.20	308.36	323.54	338.83	314.81	41.94	31.48	37.12	36.57	42.57	-4.07	-4.65	0.58	0.43
DRS	LEONARDO DRS INC	$46.11	649,000	7.45%	47.10	45.43	44.21	43.47	40.97	54.00	62.50	64.61	20.16	26.30	1.01	1.00	0.01	0.96
TXT	TEXTRON INC	$91.33	1,151,000	-6.12%	91.42	91.06	90.84	92.36	88.20	50.25	67.88	64.87	69.66	69.41	0.21	0.12	0.09	1.03
CW	CURTISS WRIGHT CORP	$719.02	252,000	46.51%	732.08	731.43	724.13	700.17	624.23	46.77	45.25	55.54	18.09	32.47	1.63	3.66	-2.04	0.92
BWXT	BWX TECHNOLOGIES INC	$183.00	740,000	-27.45%	189.17	196.24	210.36	207.14	195.65	34.84	20.94	20.90	41.54	42.43	-6.86	-6.14	-0.72	0.89
CAE	CAE INC	$25.38	532,000	-14.33%	25.45	25.48	26.07	28.00	28.15	47.75	59.31	59.31	66.97	66.77	-0.23	-0.28	0.05	1.20
HEI	HEICO CORP	$320.88	317,000	-55.79%	332.30	315.43	294.44	305.94	313.01	55.81	52.87	59.52	7.06	20.38	10.56	11.20	-0.63	0.87
AVEX	AEVEX CORP	$20.35	1,833,000	-49.56%	29.07	28.00	N/A	N/A	N/A	47.34	2.57	3.32	0.21	0.21	N/A	N/A	N/A	1.11
RGR	STURM RUGER & CO INC	$38.89	127,000	1.60%	38.94	39.30	40.54	39.41	38.31	44.11	14.25	15.46	27.97	25.07	-0.45	-0.45	0.00	0.51
MRCY	MERCURY SYSTEMS INC	$106.81	498,000	-27.30%	111.12	103.13	90.14	88.40	81.88	58.85	64.13	71.98	6.02	21.93	6.34	6.56	-0.22	0.95
TDG	TRANSDIGM GROUP INC	$1,212.36	211,000	-47.38%	1,236.31	1,217.08	1,206.48	1,252.37	1,285.53	49.00	45.01	51.94	24.30	32.87	8.16	8.68	-0.52	0.99
DCO	DUCOMMUN INC	$153.95	181,000	-14.62%	151.06	148.67	142.53	132.45	113.35	59.50	81.14	76.82	73.08	64.86	3.15	2.89	0.26	0.92
HII	HUNTINGTON INGALLS INDUSTRIES INC	$289.13	204,000	-47.01%	297.32	311.15	347.17	382.65	345.47	30.09	13.64	14.21	61.37	55.45	-15.85	-16.07	0.22	0.59
LOAR	LOAR HOLDINGS INC	$64.87	572,000	-17.10%	64.10	62.52	61.27	64.03	68.90	56.60	71.39	71.08	56.84	57.38	1.08	0.85	0.23	1.43
EMBJ	EMBRAER SA	$53.82	1,114,000	-2.79%	56.54	56.77	61.43	64.83	63.60	34.78	30.82	43.37	44.41	64.44	-1.57	-1.56	-0.01	1.29
ISSC	INNOVATIVE SOLUTIONS & SUPPORT INC	$17.16	283,000	-10.44%	17.32	17.06	19.87	21.92	17.14	43.19	74.82	77.00	83.70	84.30	-0.72	-1.00	0.28	0.83
SARO	STANDARDAERO INC	$24.77	3,028,000	-22.32%	26.06	26.19	25.98	27.82	27.69	43.01	17.90	21.85	8.79	11.40	-0.23	-0.01	-0.22	1.15
LMT	LOCKHEED MARTIN CORP	$525.02	783,000	-22.86%	522.76	524.08	548.24	590.35	536.05	47.08	48.50	43.61	75.51	67.20	-5.26	-7.66	2.40	0.24
ARXS	ARXIS INC	$40.04	580,000	-24.97%	42.18	38.97	N/A	N/A	N/A	50.84	45.67	46.39	45.03	46.87	N/A	N/A	N/A	1.43
OPXS	OPTEX SYSTEMS HOLDINGS INC	$12.18	70,000	75.00%	12.03	11.46	11.46	12.58	13.28	55.08	81.28	87.69	79.46	92.91	0.37	0.18	0.19	0.70
VSEC	VSE CORP	$173.18	321,000	-29.76%	178.65	175.31	186.77	195.60	184.07	45.88	51.86	62.75	42.46	60.93	-2.06	-2.58	0.52	1.31
POWW	OUTDOOR HOLDING CO	$2.01	309,000	17.94%	2.03	2.01	2.03	1.98	1.82	48.44	28.70	30.77	16.30	12.27	-0.00	0.00	-0.00	1.24
AXON	AXON ENTERPRISE INC	$447.59	713,000	-21.39%	470.70	430.33	409.49	455.63	554.30	53.09	58.57	69.37	38.40	54.14	18.11	15.16	2.94	1.19
NOC	NORTHROP GRUMMAN CORP	$542.14	751,000	-22.42%	544.60	548.05	592.92	649.82	617.25	40.78	47.50	47.79	84.32	83.03	-12.53	-15.57	3.04	0.22
GE	GE AEROSPACE	$318.71	3,127,000	-34.70%	322.84	310.19	301.06	307.18	303.25	55.01	79.36	85.58	49.32	71.18	7.76	6.79	0.98	1.10
CDRE	CADRE HOLDINGS INC	$29.54	256,000	-26.65%	30.33	30.24	30.55	35.09	37.26	45.66	34.80	37.21	30.98	35.44	-0.19	-0.18	-0.01	0.89
PL	PLANET LABS PBC	$30.72	9,698,000	-56.20%	41.06	42.37	38.76	32.32	23.16	33.76	7.12	9.90	0.86	1.22	-1.28	0.99	-2.28	1.82
MDA	MDA SPACE LTD	$37.74	646,000	-49.33%	41.27	41.13	35.53	N/A	N/A	47.05	14.77	15.19	1.25	1.89	1.00	2.04	-1.04	2.43
AOUT	AMERICAN OUTDOOR BRANDS INC	$10.24	90,000	63.64%	10.04	9.64	9.48	9.16	8.59	58.91	80.88	76.46	61.70	59.92	0.21	0.18	0.04	0.95
TATT	TAT TECHNOLOGIES LTD	$40.99	126,000	-35.71%	42.87	39.29	38.93	45.51	43.37	51.76	62.62	73.58	47.46	68.79	1.44	1.02	0.42	0.67
NPK	NATIONAL PRESTO INDUSTRIES INC	$129.04	145,000	29.46%	129.69	133.37	137.78	134.16	120.75	43.36	27.98	30.82	42.63	42.25	-2.40	-2.33	-0.07	0.62
SPAI	SAFE PRO GROUP INC	$5.14	189,000	-18.18%	5.72	4.98	4.53	4.66	5.27	52.08	52.89	58.94	34.21	48.21	0.32	0.32	-0.00	1.51
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$54.82	2,715,000	-21.58%	60.52	57.65	62.80	78.65	80.33	41.47	23.99	37.01	26.59	41.28	-1.28	-1.36	0.08	1.24
BA	BOEING CO	$209.00	6,751,000	30.91%	218.48	220.74	222.46	224.64	218.94	39.07	17.82	23.98	19.20	26.81	-3.08	-1.67	-1.41	1.15
KRMN	KARMAN HOLDINGS INC	$45.87	3,011,000	14.27%	53.12	58.85	69.20	82.80	77.57	29.62	6.36	8.02	0.84	4.38	-6.01	-5.21	-0.80	1.62
SIDU	SIDUS SPACE INC	$3.94	16,730,000	-24.19%	4.44	4.41	3.98	3.23	2.33	47.44	12.57	19.22	2.12	2.44	0.10	0.25	-0.15	1.82
BETA	BETA TECHNOLOGIES INC	$15.72	1,235,000	-9.79%	17.65	16.89	16.73	17.91	N/A	41.55	39.82	49.99	30.39	48.67	0.07	0.21	-0.14	3.05
AZ	A2Z CUST2MATE SOLUTIONS CORP	$5.93	391,000	-12.33%	6.56	6.43	7.14	6.63	6.86	39.07	14.89	29.39	13.86	32.97	-0.19	-0.15	-0.04	1.21
RKLB	ROCKET LAB CORP	$105.05	12,786,000	-45.49%	120.89	126.89	98.99	86.36	72.00	44.12	12.49	13.50	2.52	3.81	2.72	7.90	-5.18	2.07
VHUB	VENHUB GLOBAL INC	$1.13	273,000	32.52%	1.64	1.47	1.03	N/A	N/A	42.56	9.77	30.99	0.65	10.59	0.11	0.17	-0.06	2.20
AVAV	AEROVIRONMENT INC	$172.93	785,000	-23.26%	194.60	180.84	184.58	217.22	260.29	43.82	33.61	44.06	24.34	36.00	0.67	1.46	-0.80	1.11
SPCE	VIRGIN GALACTIC HOLDINGS INC	$4.71	34,081,000	-37.27%	4.96	3.95	3.22	2.92	3.26	56.50	31.74	30.87	19.60	22.86	0.50	0.51	-0.01	2.06
MNTS	MOMENTUS INC	$11.34	5,393,000	-3.47%	14.71	11.60	7.61	6.51	12.01	51.14	38.98	46.23	1.10	9.50	1.90	2.29	-0.39	2.13
VWAV	VISIONWAVE HOLDINGS INC	$4.98	391,000	-3.93%	5.66	5.47	5.87	7.11	8.80	42.04	18.54	25.96	26.57	36.45	-0.17	-0.15	-0.03	0.20
SATL	SATELLOGIC INC	$6.28	7,877,000	-35.73%	7.95	8.79	7.67	5.73	4.17	35.40	4.79	5.68	0.00	1.06	-0.22	0.26	-0.48	1.22
YSS	YORK SPACE SYSTEMS INC	$27.62	1,166,000	-33.56%	29.99	29.21	31.59	N/A	N/A	44.09	28.53	35.37	15.27	26.44	-0.64	-0.34	-0.30	2.32
VTSI	VIRTRA INC	$3.46	132,000	158.82%	3.38	3.41	3.93	4.18	4.74	43.73	44.17	41.39	73.95	73.05	-0.18	-0.21	0.03	0.72
RDW	REDWIRE CORP	$14.87	30,520,000	-55.53%	19.94	18.02	13.11	11.41	9.70	45.63	23.26	34.95	0.26	2.40	1.48	2.31	-0.83	2.09
AADX	APPLIED AEROSPACE & DEFENSE INC	$18.41	1,402,000	-20.92%	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	3.03
LUNR	INTUITIVE MACHINES INC	$26.54	8,309,000	-36.93%	34.79	35.07	29.29	23.82	17.75	40.48	6.36	7.37	0.70	0.70	0.10	1.89	-1.79	0.89
FJET	STARFIGHTERS SPACE INC	$8.10	1,372,000	-41.04%	8.27	6.98	6.16	6.79	N/A	57.16	52.70	57.82	32.45	41.79	0.70	0.62	0.07	4.28
PRZO	PARAZERO TECHNOLOGIES LTD	$0.58	7,344,000	567.03%	0.72	0.63	0.68	0.90	1.15	43.00	20.27	25.54	39.48	47.70	-0.01	-0.00	-0.00	0.82
DPRO	DRAGANFLY INC	$5.73	1,270,000	-23.31%	6.88	6.35	5.84	6.49	7.10	43.19	25.65	36.17	6.15	14.72	0.17	0.30	-0.13	1.23
DFSC	DEFSEC TECHNOLOGIES INC	$3.50	35,600	27.14%	4.09	4.12	3.22	2.65	2.97	45.01	13.93	24.58	0.96	5.24	0.12	0.27	-0.15	1.29
BYRN	BYRNA TECHNOLOGIES INC	$6.27	299,000	-3.24%	6.21	5.77	6.26	9.31	14.42	53.90	67.63	64.72	69.69	68.43	0.02	-0.10	0.12	1.16
EH	EHANG HOLDINGS LTD	$6.82	2,133,000	-64.46%	8.96	9.26	10.01	10.97	13.46	30.75	16.13	17.22	16.15	17.55	-0.65	-0.36	-0.29	1.71
PEW	GRABAGUN DIGITAL HOLDINGS INC	$2.54	152,000	-47.95%	2.62	2.73	2.87	2.92	3.62	35.47	19.09	24.24	40.79	54.96	-0.10	-0.09	-0.01	0.31
KITT	NAUTICUS ROBOTICS INC	$1.48	131,000	-19.63%	1.69	1.72	2.58	4.63	11.68	31.21	7.72	10.87	40.22	44.54	-0.30	-0.34	0.04	0.95
FLY	FIREFLY AEROSPACE INC	$33.42	5,097,000	-19.25%	40.37	43.24	39.21	31.37	30.06	39.47	4.14	4.60	0.12	0.92	-0.75	1.27	-2.02	3.07
AIRO	AIRO GROUP HOLDINGS INC	$7.96	615,000	-15.98%	8.85	7.71	7.90	9.04	11.91	48.96	61.98	66.17	56.72	64.56	0.27	0.19	0.08	2.80
HAWK	HAWKEYE 360 INC	$23.38	642,000	-41.69%	27.80	29.56	N/A	N/A	N/A	25.42	11.31	12.99	N/A	N/A	N/A	N/A	N/A	2.33
ASTC	ASTROTECH CORP	$24.00	819,000	41.70%	35.11	19.35	9.76	6.32	5.22	54.20	36.03	41.34	36.41	41.89	7.29	7.37	-0.08	0.46
ACHR	ARCHER AVIATION INC	$5.05	34,363,000	-35.84%	6.18	6.19	5.97	6.42	7.83	31.82	9.10	16.22	5.06	9.15	-0.13	0.04	-0.17	2.07
EVTL	VERTICAL AEROSPACE LTD	$2.07	2,317,000	-23.28%	2.43	2.50	2.51	3.38	4.30	32.97	7.80	9.33	0.70	0.70	-0.12	-0.06	-0.06	1.37
HOVR	NEW HORIZON AIRCRAFT LTD	$2.07	1,559,000	-10.40%	2.46	2.50	2.13	2.01	2.04	42.14	5.59	10.44	0.00	1.12	0.02	0.10	-0.09	1.23
MRLN	MERLIN INC	$7.05	3,011,000	-39.51%	7.67	7.34	9.06	9.70	10.20	43.59	32.93	45.12	50.36	68.52	-0.39	-0.50	0.11	0.25
VOYG	VOYAGER TECHNOLOGIES INC	$41.28	2,102,000	-40.99%	45.61	42.80	34.12	31.24	29.73	51.96	30.51	38.40	4.23	4.16	2.83	3.93	-1.10	3.13
EVEX	EVE HOLDING INC	$2.57	1,010,000	-20.22%	3.10	3.07	2.93	3.07	3.68	34.22	6.40	13.40	0.00	3.87	-0.04	0.04	-0.08	0.88
SKYH	SKY HARBOUR GROUP CORP	$9.25	104,000	7.22%	9.28	9.16	9.87	9.53	9.61	46.61	58.41	57.94	76.64	74.16	-0.14	-0.19	0.06	0.33
DUKR	DUKE ROBOTICS CORP	$6.65	16,700	1.83%	6.62	N/A	N/A	N/A	N/A	36.03	N/A	N/A	N/A	N/A	N/A	N/A	N/A	2.20
GPUS	HYPERSCALE DATA INC	$0.17	17,631,000	-36.75%	0.19	0.17	0.15	0.17	0.27	51.55	30.17	31.97	20.47	21.70	0.01	0.01	-0.00	1.39
FACT	FACT II ACQUISITION CORP	$10.64	11,400	52.00%	10.66	10.64	10.59	10.54	10.50	52.30	96.08	96.60	24.40	25.94	0.02	0.02	-0.00	0.28
AIRI	AIR INDUSTRIES GROUP	$3.04	68,000	368.97%	3.03	2.96	3.07	3.18	3.15	51.97	71.37	75.07	54.34	66.12	-0.01	-0.02	0.01	0.50

Defense Stocks FAQ

What are the best defense stocks to buy right now in Jun 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. Smith & Wesson Brands (NASDAQ:SWBI)

Smith & Wesson Brands (NASDAQ:SWBI) is the #1 top defense stock out of 88 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

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

Smith & Wesson Brands (NASDAQ:SWBI) has a Due Diligence Score of 31, which is -1 points lower than the defense industry average of 32. Although this number is below the industry average, our proven quant model rates SWBI as a "A".

SWBI passed 10 out of 38 due diligence checks and has average fundamentals. Smith & Wesson Brands has seen its stock return 35.36% over the past year, overperforming other defense stocks by 18 percentage points.

Smith & Wesson Brands has an average 1 year price target of $14.00, a downside of -1.96% from Smith & Wesson Brands's current stock price of $14.28.

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.

2. V2x (NYSE:VVX)

V2x (NYSE:VVX) is the #2 top defense stock out of 88 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for V2x (NYSE:VVX) is: Value: B, Growth: A, Momentum: C, Sentiment: B, Safety: B, Financials: C, and AI: C.

V2x (NYSE:VVX) has a Due Diligence Score of 42, which is 10 points higher than the defense industry average of 32.

VVX passed 14 out of 33 due diligence checks and has strong fundamentals. V2x has seen its stock return 91.95% over the past year, overperforming other defense stocks by 75 percentage points.

V2x has an average 1 year price target of $79.11, a downside of -7.63% from V2x's current stock price of $85.65.

V2x stock has a consensus Buy recommendation according to Wall Street analysts. Of the 9 analysts covering V2x, 33.33% have issued a Strong Buy rating, 11.11% have issued a Buy, 44.44% have issued a hold, while 0% have issued a Sell rating, and 11.11% have issued a Strong Sell.

3. Sifco Industries (NYSEMKT:SIF)

Sifco Industries (NYSEMKT:SIF) is the #3 top defense stock out of 88 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Sifco Industries (NYSEMKT:SIF) is: Value: C, Growth: A, Momentum: A, Sentiment: C, Safety: C, Financials: B, and AI: D.

Sifco Industries (NYSEMKT:SIF) has a Due Diligence Score of 36, which is 4 points higher than the defense industry average of 32.

SIF passed 11 out of 33 due diligence checks and has average fundamentals. Sifco Industries has seen its stock return 475.21% over the past year, overperforming other defense stocks by 458 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 3.64%, which is 3 percentage points higher than the defense industry average of 0.99%. 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 200% 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 0.99%. 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 65.1% indicates that its dividend yield is sustainable for the long-term.

3. General Dynamics (NYSE:GD)

General Dynamics (NYSE:GD) has an annual dividend yield of 1.79%, which is 1 percentage points higher than the defense industry average of 0.99%. General Dynamics's dividend payout is stable, having never dropped by more than 10% in the last 10 years. General Dynamics's dividend has shown consistent growth over the last 10 years.

General Dynamics's dividend payout ratio of 37.8% indicates that its dividend yield is sustainable for the long-term.

Why are defense stocks down?

Defense stocks were down -2.23% in the last day, and down -1.14% over the last week. Momentus was the among the top losers in the aerospace & defense industry, dropping -10.64% yesterday.

Shares of space-related companies are trading higher ahead of SpaceX's IPO on Friday.

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 14 points higher than the defense industry average of 15. It passed 2 out of 7 valuation due diligence checks.

Textron's stock has gained 17.32% in the past year. It has performed in line with other stocks in the defense industry.

2. Huntington Ingalls Industries (NYSE:HII)

Huntington Ingalls Industries (NYSE:HII) 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.

Huntington Ingalls Industries has a valuation score of 29, which is 14 points higher than the defense industry average of 15. It passed 2 out of 7 valuation due diligence checks.

Huntington Ingalls Industries's stock has gained 29.48% in the past year. It has overperformed other stocks in the defense industry by 12 percentage points.

3. V2x (NYSE:VVX)

V2x (NYSE:VVX) 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.

V2x has a valuation score of 29, which is 14 points higher than the defense industry average of 15. It passed 2 out of 7 valuation due diligence checks.

V2x's stock has gained 91.95% in the past year. It has overperformed other stocks in the defense industry by 75 percentage points.

Are defense stocks a good buy now?

66.18% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 20.58% over the next year.

4.76% of defense stocks have a Zen Rating of A (Strong Buy), 21.43% of defense stocks are rated B (Buy), 46.43% 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 29.02x.

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 +32.52% per year, and are the best defense stocks to buy now. Learn More.

Defense Stocks FAQ

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. V2x (NYSE:VVX)

3. Sifco Industries (NYSEMKT:SIF)

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. Lockheed Martin (NYSE:LMT)

3. General Dynamics (NYSE:GD)

1. Textron (NYSE:TXT)

2. Huntington Ingalls Industries (NYSE:HII)

3. V2x (NYSE:VVX)

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 +32.52% per year, and are the best defense stocks to buy now. Learn More.

Defense Stocks FAQ

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. V2x (NYSE:VVX)

3. Sifco Industries (NYSEMKT:SIF)

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. Lockheed Martin (NYSE:LMT)

3. General Dynamics (NYSE:GD)

1. Textron (NYSE:TXT)

2. Huntington Ingalls Industries (NYSE:HII)

3. V2x (NYSE:VVX)

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 +32.52% per year, and are the best defense stocks to buy now. Learn More.