Sectors & Industries IndustrialsAerospace & Defense
Best Defense Stocks to Buy Now (2025)
Top defense stocks in 2025 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 C and is the 60th ranked industry out of 145 stock market industries

Ticker	Company	Market Cap	ROE	ROA	ROCE	ROIC	D/E	Current Ratio	Gross Margin	Profit Margin	Operating Margin
TATT	TAT TECHNOLOGIES LTD	$311.36M	10.90%	7.30%	10.25%	9.90%	0.46	2.97	21.70%	7.30%	8.44%
ESLT	ELBIT SYSTEMS LTD	$17.71B	10.40%	3.00%	9.03%	8.30%	2.35	1.20	24.00%	4.70%	7.49%
RGR	STURM RUGER & CO INC	$673.12M	9.80%	8.30%	11.90%	12.30%	0.18	4.63	21.50%	5.80%	7.22%
TXT	TEXTRON INC	$12.70B	11.70%	5.00%	8.38%	8.60%	1.33	1.65	18.80%	6.00%	7.58%
CAE	CAE INC	$8.00B	-4.90%	-2.10%	-0.36%	-0.40%	1.35	0.86	26.10%	-4.70%	-0.67%
CVU	CPI AEROSTRUCTURES INC	$41.96M	13.50%	4.70%	16.22%	11.30%	1.62	1.65	21.30%	4.10%	8.30%
VVX	V2X INC	$1.57B	3.50%	1.10%	6.57%	11.20%	2.15	1.10	7.90%	0.80%	3.40%
LMT	LOCKHEED MARTIN CORP	$111.93B	83.40%	9.90%	21.05%	18.30%	7.48	1.08	10.10%	7.70%	10.40%
CDRE	CADRE HOLDINGS INC	$1.18B	12.20%	5.80%	11.11%	16.00%	1.10	3.48	41.10%	6.40%	10.93%
AOUT	AMERICAN OUTDOOR BRANDS INC	$142.95M	-2.50%	-1.80%	-2.14%	-2.40%	0.38	4.82	45.20%	-2.10%	-2.19%
WWD	WOODWARD INC	$11.13B	16.70%	8.50%	14.70%	17.50%	0.94	1.89	26.00%	11.20%	14.95%
ATRO	ASTRONICS CORP	$800.26M	-6.40%	-2.50%	2.87%	2.50%	1.53	2.73	21.20%	-2.00%	1.78%
DRS	LEONARDO DRS INC	$9.80B	8.70%	5.40%	9.29%	17.00%	0.64	1.94	22.80%	6.60%	8.81%
MRCY	MERCURY SYSTEMS INC	$2.98B	-6.20%	-3.80%	-4.11%	-6.10%	0.65	3.62	25.60%	-10.20%	-9.89%
ISSC	INNOVATIVE SOLUTIONS & SUPPORT INC	$118.26M	14.90%	9.50%	12.61%	18.40%	0.70	5.22	50.10%	12.40%	17.50%
NPK	NATIONAL PRESTO INDUSTRIES INC	$602.55M	12.00%	9.70%	13.37%	16.30%	0.23	4.93	20.20%	10.70%	13.05%
DCO	DUCOMMUN INC	$849.11M	4.80%	2.80%	5.49%	6.50%	0.65	3.24	25.10%	4.00%	6.64%
HWM	HOWMET AEROSPACE INC	$56.13B	26.50%	11.00%	17.45%	21.80%	1.31	2.17	31.10%	15.50%	21.06%
GD	GENERAL DYNAMICS CORP	$73.04B	17.80%	7.10%	13.49%	22.00%	1.55	1.34	15.40%	8.10%	10.37%
LOAR	LOAR HOLDINGS INC	$8.85B	2.90%	1.80%	5.76%	12.80%	0.33	5.28	49.40%	5.50%	20.15%
RTX	RTX CORP	$168.50B	7.60%	2.80%	7.04%	12.70%	1.65	1.01	19.50%	5.60%	9.67%
BWXT	BWX TECHNOLOGIES INC	$9.98B	27.60%	9.90%	16.19%	12.50%	1.66	1.96	24.20%	10.40%	14.34%
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$5.16B	1.20%	0.80%	1.78%	3.10%	0.44	2.94	25.30%	1.40%	2.60%
PKE	PARK AEROSPACE CORP	$260.42M	6.60%	5.70%	8.24%	9.20%	0.16	7.55	27.90%	11.90%	15.01%
HEI	HEICO CORP	$34.84B	15.90%	7.50%	11.36%	18.90%	0.98	3.40	39.10%	14.20%	20.69%
ERJ	EMBRAER SA	$8.44B	12.00%	3.10%	13.10%	16.10%	2.76	1.48	18.00%	5.50%	15.18%
SARO	STANDARDAERO INC	$9.04B	0.60%	0.20%	7.37%	7.80%	1.62	1.95	14.40%	0.20%	6.96%
LHX	L3HARRIS TECHNOLOGIES INC	$41.13B	8.40%	3.80%	7.12%	13.60%	1.16	1.02	26.00%	7.60%	11.33%
EH	EHANG HOLDINGS LTD	$1.20B	-36.00%	-18.80%	-20.29%	-43.80%	0.66	2.89	61.40%	-50.40%	-49.55%
CW	CURTISS WRIGHT CORP	$12.99B	16.60%	8.40%	14.57%	22.80%	1.04	1.69	37.00%	13.00%	18.16%
MOG.A	MOOG INC	$5.27B	11.40%	5.00%	9.88%	10.10%	1.35	2.45	27.10%	5.70%	9.07%
TDG	TRANSDIGM GROUP INC	$79.25B	-36.30%	7.30%	19.28%	14.40%	-4.44	2.70	59.70%	20.20%	45.46%
AIR	AAR CORP	$1.93B	-1.00%	-0.40%	3.49%	3.20%	1.42	2.82	18.80%	-0.50%	3.01%
BYRN	BYRNA TECHNOLOGIES INC	$507.52M	28.70%	22.30%	15.08%	28.30%	0.25	3.99	62.00%	15.10%	9.31%
AXON	AXON ENTERPRISE INC	$46.99B	18.40%	9.50%	10.97%	13.70%	0.92	2.30	59.60%	18.10%	18.32%
AZ	A2Z CUST2MATE SOLUTIONS CORP	$224.00M	-228.20%	-158.00%	-226.16%	897.70%	0.87	1.49	27.70%	-237.20%	-231.65%
KRMN	KARMAN HOLDINGS INC	$4.73B	6.70%	1.70%	9.87%	10.30%	2.95	1.76	38.30%	3.70%	18.84%
SATL	SATELLOGIC INC	$395.58M	N/A	-168.40%	-418.97%	-189.10%	-2.16	0.81	61.00%	-903.40%	-881.23%
VSEC	VSE CORP	$2.36B	1.90%	1.00%	4.15%	5.10%	0.76	3.10	11.70%	1.40%	5.58%
BA	BOEING CO	$138.16B	N/A	-7.90%	-16.84%	-10.60%	-48.07	1.23	-2.10%	-16.80%	-12.81%
POWW	AMMO INC	$233.95M	-6.90%	-6.10%	-7.59%	-22.80%	0.16	3.17	27.10%	-17.40%	-19.29%
HXL	HEXCEL CORP	$3.90B	8.00%	4.40%	7.19%	6.10%	0.81	2.59	24.10%	6.60%	9.38%
SPAI	SAFE PRO GROUP INC	$48.25M	-314.50%	-178.90%	-175.59%	-3,036.70%	0.28	3.08	41.80%	-342.50%	-328.32%
NOC	NORTHROP GRUMMAN CORP	$70.02B	25.00%	7.70%	14.77%	16.80%	2.24	0.95	19.30%	9.20%	12.62%
EVTL	VERTICAL AEROSPACE LTD	$257.31M	N/A	-1,185.30%	12.40%	24.50%	-1.10	0.08	N/A	N/A	N/A
HII	HUNTINGTON INGALLS INDUSTRIES INC	$9.01B	12.80%	4.80%	8.07%	9.80%	1.60	1.08	12.60%	4.80%	6.40%
AVAV	AEROVIRONMENT INC	$4.28B	3.90%	3.20%	3.61%	6.10%	0.22	4.22	39.60%	4.40%	4.47%
MNTS	MOMENTUS INC	$8.65M	N/A	-228.40%	683.10%	-474.00%	-2.27	0.30	96.90%	-1,653.10%	-1,634.39%
SKYH	SKY HARBOUR GROUP CORP	$808.97M	-69.30%	-9.40%	N/A	-6.50%	3.81	N/A	11.40%	-306.40%	-301.58%
PRZO	PARAZERO TECHNOLOGIES LTD	$11.28M	N/A	-156.10%	-250.28%	-1,783.60%	-19.41	3.87	6.30%	-1,185.90%	-1,185.88%
SPCE	VIRGIN GALACTIC HOLDINGS INC	$102.68M	-92.40%	-33.70%	-41.14%	-31.20%	1.98	4.19	-1,179.50%	-4,928.10%	-4,743.31%
DPRO	DRAGANFLY INC	$15.25M	-690.50%	-147.60%	-281.73%	690.00%	1.21	1.74	21.30%	-211.50%	-213.15%
SWBI	SMITH & WESSON BRANDS INC	$419.35M	7.90%	5.10%	7.98%	7.50%	0.59	4.67	29.00%	6.00%	8.34%
PL	PLANET LABS PBC	$994.41M	-26.20%	-19.00%	-24.55%	-55.40%	0.44	2.13	57.20%	-50.40%	-49.41%
KITT	NAUTICUS ROBOTICS INC	$6.47M	N/A	-199.90%	-373.04%	-83.50%	-1.68	0.56	-402.60%	-2,327.60%	-1,842.35%
RKLB	ROCKET LAB USA INC	$9.88B	-43.80%	-16.20%	-21.95%	-20.20%	2.10	2.04	26.60%	-43.60%	-42.52%
SIDU	SIDUS SPACE INC	$28.92M	-111.40%	-65.00%	-68.91%	-105.90%	0.60	1.57	-31.40%	-375.90%	-347.08%
HOVR	NEW HORIZON AIRCRAFT LTD	$15.88M	-114.20%	172.30%	112.30%	1,293.20%	0.48	7.11	N/A	N/A	N/A
LUNR	INTUITIVE MACHINES INC	$1.46B	N/A	-127.60%	-110.52%	-417.80%	-0.35	2.97	1.20%	-124.70%	-124.37%
EVEX	EVE HOLDING INC	$1.06B	-103.60%	-52.60%	-51.76%	-53.70%	1.57	5.27	N/A	N/A	N/A
VTSI	VIRTRA INC	$52.70M	3.00%	2.00%	4.03%	5.10%	0.43	4.61	73.70%	5.20%	8.54%
SPR	SPIRIT AEROSYSTEMS HOLDINGS INC	$4.22B	N/A	-31.20%	-55.98%	-24.30%	-3.58	1.05	-21.70%	-33.90%	-28.32%
RDW	REDWIRE CORP	$814.68M	N/A	-56.40%	-71.79%	-94.60%	-1.83	0.84	14.60%	-51.10%	-33.82%
ACHR	ARCHER AVIATION INC	$4.52B	-111.10%	-81.10%	-57.69%	-483.40%	0.33	12.07	N/A	N/A	N/A
SHMD	SCHMID GROUP NV	$174.05M	N/A	-37.70%	-153.05%	-38.20%	-3.06	0.60	26.70%	-30.00%	-18.60%
TGI	TRIUMPH GROUP INC	$1.97B	-558.10%	36.10%	54.38%	45.00%	-19.37	2.50	30.50%	45.10%	52.76%
SIF	SIFCO INDUSTRIES INC	$16.29M	-13.80%	-4.30%	-2.33%	-1.40%	1.41	1.26	7.80%	-5.40%	-1.47%
RAIN	RAIN ENHANCEMENT TECHNOLOGIES HOLDCO INC	$33.53M	N/A	-21.40%	91.79%	-25.20%	-1.24	0.12	N/A	N/A	N/A
AIRI	AIR INDUSTRIES GROUP	$13.08M	-9.30%	-2.70%	2.23%	1.00%	2.41	1.43	16.20%	-2.50%	0.96%
OPXS	OPTEX SYSTEMS HOLDINGS INC	$44.00M	23.00%	16.90%	24.27%	24.50%	0.26	5.63	28.30%	11.90%	14.72%
ASTC	ASTROTECH CORP	$9.94M	-40.40%	-37.40%	-47.21%	-50.60%	0.10	10.74	47.70%	-3,198.10%	-3,197.61%
KWE	KWESST MICRO SYSTEMS INC	$1.66M	-410.00%	-155.80%	-163.22%	4,083.40%	0.61	2.58	41.80%	-463.80%	-452.98%
GPUS	HYPERSCALE DATA INC	$2.10M	-253.40%	-24.00%	-693.08%	-27.00%	25.32	0.27	22.70%	-57.60%	-34.20%
CODA	CODA OCTOPUS GROUP INC	$75.24M	7.50%	7.00%	8.89%	19.90%	0.07	12.80	68.90%	18.70%	22.61%

Defense Stocks FAQ

What are the best defense stocks to buy right now in May 2025?

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. Tat Technologies (NASDAQ:TATT)

Tat Technologies (NASDAQ:TATT) is the #1 top defense stock out of 74 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 Tat Technologies (NASDAQ:TATT) is: Value: C, Growth: B, Momentum: A, Sentiment: B, Safety: C, Financials: C, and AI: B.

Tat Technologies (NASDAQ:TATT) has a Due Diligence Score of 39, which is 8 points higher than the defense industry average of 31.

TATT passed 16 out of 38 due diligence checks and has average fundamentals. Tat Technologies has seen its stock return 134.82% over the past year, overperforming other defense stocks by 120 percentage points.

Tat Technologies has an average 1 year price target of $35.00, an upside of 22.98% from Tat Technologies's current stock price of $28.46.

Tat Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Tat Technologies, 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. Elbit Systems (NASDAQ:ESLT)

Elbit Systems (NASDAQ:ESLT) is the #2 top defense stock out of 74 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 Elbit Systems (NASDAQ:ESLT) is: Value: C, Growth: A, Momentum: A, Sentiment: B, Safety: A, Financials: C, and AI: A.

Elbit Systems (NASDAQ:ESLT) has a Due Diligence Score of 44, which is 13 points higher than the defense industry average of 31.

ESLT passed 17 out of 38 due diligence checks and has strong fundamentals. Elbit Systems has seen its stock return 95.89% over the past year, overperforming other defense stocks by 81 percentage points.

3. Sturm Ruger & Co (NYSE:RGR)

Sturm Ruger & Co (NYSE:RGR) is the #3 top defense stock out of 74 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 Sturm Ruger & Co (NYSE:RGR) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: B.

Sturm Ruger & Co (NYSE:RGR) has a Due Diligence Score of 38, which is 7 points higher than the defense industry average of 31.

RGR passed 13 out of 38 due diligence checks and has average fundamentals. Sturm Ruger & Co has seen its stock lose -12.05% over the past year, underperforming other defense stocks by -27 percentage points.

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. Transdigm Group (NYSE:TDG)

Transdigm Group (NYSE:TDG) has an annual dividend yield of 5.31%, which is 4 percentage points higher than the defense industry average of 1.36%.

Transdigm Group's dividend payout ratio of 264.5% indicates that its high dividend yield might not be sustainable for the long-term.

2. Smith & Wesson Brands (NASDAQ:SWBI)

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 4.09%, which is 3 percentage points higher than the defense industry average of 1.36%. 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 78.5% indicates that its dividend yield is sustainable for the long-term.

3. Park Aerospace (NYSE:PKE)

Park Aerospace (NYSE:PKE) has an annual dividend yield of 2.91%, which is 2 percentage points higher than the defense industry average of 1.36%. Park Aerospace's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Park Aerospace's dividend has shown consistent growth over the last 10 years.

Park Aerospace's dividend payout ratio of 138.9% indicates that its dividend yield might not be sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.34% in the last day, and up 4.34% over the last week. Parazero Technologies was the among the top gainers in the aerospace & defense industry, gaining 17.33% yesterday.

ParaZero Technologies shares are trading higher after the company announced it received official marketing approval from the Israeli Ministry of Defense for its DropAir precision airdrop.

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. Cpi Aerostructures (NYSEMKT:CVU)

Cpi Aerostructures (NYSEMKT:CVU) 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.

Cpi Aerostructures has a valuation score of 43, which is 23 points higher than the defense industry average of 20. It passed 3 out of 7 valuation due diligence checks.

Cpi Aerostructures's stock has gained 21.97% in the past year. It has overperformed other stocks in the defense industry by 7 percentage points.

2. V2x (NYSE:VVX)

V2x (NYSE:VVX) is the second 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.

V2x has a valuation score of 29, which is 9 points higher than the defense industry average of 20. It passed 2 out of 7 valuation due diligence checks.

V2x's stock has gained 2.43% in the past year. It has underperformed other stocks in the defense industry by -12 percentage points.

3. Textron (NYSE:TXT)

Textron (NYSE:TXT) is the third 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 57, which is 37 points higher than the defense industry average of 20. It passed 4 out of 7 valuation due diligence checks.

Textron's stock has dropped -16.81% in the past year. It has underperformed other stocks in the defense industry by -31 percentage points.

Are defense stocks a good buy now?

56.6% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 10.65% over the next year.

6.25% of defense stocks have a Zen Rating of A (Strong Buy), 23.44% of defense stocks are rated B (Buy), 43.75% are rated C (Hold), 18.75% are rated D (Sell), and 7.81% 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 41.32x.

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.