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 61st 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
ATRO	ASTRONICS CORP	$1.15B	-1.40%	-0.50%	5.20%	4.60%	1.48	2.74	23.90%	-0.40%	3.21%
DCO	DUCOMMUN INC	$1.23B	5.20%	3.10%	5.88%	7.00%	0.63	3.34	25.60%	4.50%	7.11%
ISSC	INNOVATIVE SOLUTIONS & SUPPORT INC	$255.96M	22.60%	13.80%	18.08%	23.70%	0.68	4.87	50.20%	16.60%	22.61%
OPXS	OPTEX SYSTEMS HOLDINGS INC	$80.60M	25.10%	19.00%	26.29%	28.60%	0.27	5.06	28.80%	13.10%	16.21%
CW	CURTISS WRIGHT CORP	$18.08B	17.30%	8.80%	14.82%	23.40%	0.94	1.89	37.10%	13.40%	18.44%
ESLT	ELBIT SYSTEMS LTD	$19.42B	11.20%	3.20%	9.74%	8.90%	2.44	1.21	24.00%	4.90%	7.77%
CAE	CAE INC	$9.38B	8.90%	3.80%	8.44%	9.30%	1.28	0.80	27.60%	8.60%	15.28%
GD	GENERAL DYNAMICS CORP	$78.89B	17.80%	7.10%	13.49%	22.00%	1.55	1.34	15.40%	8.10%	10.37%
WWD	WOODWARD INC	$14.81B	17.20%	8.70%	14.45%	18.10%	0.92	1.95	25.80%	11.40%	15.12%
DRS	LEONARDO DRS INC	$12.05B	9.40%	5.90%	9.84%	18.10%	0.59	2.02	22.80%	7.00%	9.03%
VVX	V2X INC	$1.57B	4.10%	1.30%	6.61%	11.70%	2.00	1.16	8.10%	1.00%	3.42%
HWM	HOWMET AEROSPACE INC	$71.03B	27.70%	11.80%	18.41%	23.50%	1.25	2.30	32.20%	16.60%	22.50%
CODA	CODA OCTOPUS GROUP INC	$92.44M	6.40%	5.90%	7.79%	18.00%	0.08	10.91	67.10%	15.00%	19.28%
LMT	LOCKHEED MARTIN CORP	$108.37B	83.40%	9.90%	21.05%	18.30%	7.48	1.08	10.10%	7.70%	10.40%
ERJ	EMBRAER SA	$10.90B	12.00%	3.10%	13.10%	16.10%	2.76	1.48	18.00%	5.50%	15.18%
LOAR	LOAR HOLDINGS INC	$7.64B	3.80%	2.60%	6.02%	14.80%	0.34	5.13	50.30%	8.30%	20.20%
TXT	TEXTRON INC	$14.79B	11.70%	5.00%	8.38%	8.60%	1.33	1.65	18.80%	6.00%	7.58%
CDRE	CADRE HOLDINGS INC	$1.30B	12.50%	6.00%	11.79%	16.70%	1.07	3.55	41.40%	6.90%	11.85%
HEI	HEICO CORP	$44.35B	16.10%	7.80%	11.62%	19.60%	0.91	3.43	39.30%	14.50%	20.88%
AOUT	AMERICAN OUTDOOR BRANDS INC	$134.47M	0.00%	0.00%	-0.01%	0.00%	0.39	4.66	44.60%	0.00%	-0.01%
MOG.A	MOOG INC	$5.75B	11.40%	5.00%	9.88%	10.10%	1.35	2.45	27.10%	5.70%	9.07%
VTSI	VIRTRA INC	$75.00M	3.10%	2.10%	3.33%	4.10%	0.42	4.54	75.30%	5.60%	7.43%
BWXT	BWX TECHNOLOGIES INC	$12.86B	27.30%	9.90%	15.16%	12.50%	1.78	2.02	24.10%	10.40%	14.01%
LHX	L3HARRIS TECHNOLOGIES INC	$47.40B	8.40%	3.80%	7.12%	13.60%	1.16	1.02	26.00%	7.60%	11.33%
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$6.64B	1.40%	1.00%	1.71%	3.00%	0.45	2.84	24.90%	1.70%	2.50%
SARO	STANDARDAERO INC	$10.36B	N/A	N/A	N/A	N/A	1.67	2.00	N/A	N/A	N/A
RTX	RTX CORP	$193.07B	7.60%	2.80%	7.04%	12.70%	1.65	1.01	19.50%	5.60%	9.67%
TATT	TAT TECHNOLOGIES LTD	$334.17M	11.90%	8.00%	11.82%	11.20%	0.47	2.87	22.40%	8.00%	9.53%
KRMN	KARMAN HOLDINGS INC	$5.98B	N/A	N/A	N/A	N/A	1.51	3.34	N/A	N/A	N/A
AIR	AAR CORP	$2.57B	-1.00%	-0.40%	3.49%	3.20%	1.42	2.82	18.80%	-0.50%	3.01%
BYRN	BYRNA TECHNOLOGIES INC	$716.96M	28.70%	22.30%	15.08%	28.30%	0.25	3.99	62.00%	15.10%	9.31%
NPK	NATIONAL PRESTO INDUSTRIES INC	$744.96M	12.00%	9.70%	13.72%	15.50%	0.24	4.60	19.90%	10.20%	12.55%
RGR	STURM RUGER & CO INC	$604.92M	9.80%	8.30%	11.90%	12.30%	0.18	4.63	21.50%	5.80%	7.22%
EVTL	VERTICAL AEROSPACE LTD	$561.76M	N/A	N/A	N/A	N/A	-3.68	0.72	N/A	N/A	N/A
AVAV	AEROVIRONMENT INC	$11.25B	5.10%	4.20%	4.92%	8.10%	0.26	3.52	38.80%	5.30%	5.69%
MRCY	MERCURY SYSTEMS INC	$3.02B	-4.50%	-2.70%	-2.52%	-3.80%	0.66	3.44	27.40%	-7.30%	-6.00%
HII	HUNTINGTON INGALLS INDUSTRIES INC	$9.82B	12.30%	4.70%	8.09%	9.40%	1.54	1.07	12.80%	4.80%	6.52%
TDG	TRANSDIGM GROUP INC	$84.90B	-33.20%	7.60%	19.48%	14.60%	-4.86	3.09	59.50%	20.50%	46.07%
BA	BOEING CO	$159.87B	N/A	-7.90%	-16.84%	-10.60%	-48.07	1.23	-2.10%	-16.80%	-12.81%
PKE	PARK AEROSPACE CORP	$295.97M	5.40%	4.70%	8.42%	10.10%	0.14	9.75	28.40%	9.50%	15.33%
AXON	AXON ENTERPRISE INC	$60.30B	14.90%	7.20%	6.97%	10.10%	1.38	2.83	60.40%	14.90%	14.86%
VOYG	VOYAGER TECHNOLOGIES INC	N/A	N/A	N/A	N/A	N/A	4.05	2.39	N/A	N/A	N/A
PL	PLANET LABS PBC	$1.86B	-23.40%	-16.50%	-20.56%	-51.90%	0.48	2.10	57.80%	-42.60%	-41.40%
AZ	A2Z CUST2MATE SOLUTIONS CORP	$343.99M	-163.30%	-120.30%	-69.80%	-2,438.20%	0.33	4.28	30.70%	-316.90%	-310.55%
VSEC	VSE CORP	$2.69B	1.50%	0.80%	3.80%	4.60%	0.78	3.90	11.70%	1.20%	5.15%
NOC	NORTHROP GRUMMAN CORP	$71.81B	25.00%	7.70%	14.77%	16.80%	2.24	0.95	19.30%	9.20%	12.62%
EH	EHANG HOLDINGS LTD	$1.22B	-30.00%	-16.60%	-21.59%	-34.10%	0.74	2.68	61.40%	-58.20%	-57.19%
AIRO	AIRO GROUP HOLDINGS INC	N/A	N/A	N/A	N/A	N/A	0.26	0.41	N/A	N/A	N/A
HXL	HEXCEL CORP	$4.63B	8.00%	4.40%	7.19%	6.10%	0.81	2.59	24.10%	6.60%	9.38%
SATL	SATELLOGIC INC	$368.55M	N/A	N/A	N/A	N/A	-1.74	0.58	N/A	N/A	N/A
MNTS	MOMENTUS INC	$6.20M	N/A	-258.40%	615.92%	-1,357.70%	-2.96	0.40	96.60%	-1,705.90%	-1,680.24%
DFSC	DEFSEC TECHNOLOGIES INC	$6.25M	-206.40%	-112.10%	-102.19%	-2,274.20%	0.41	4.13	33.40%	-276.70%	-269.64%
POWW	OUTDOOR HOLDING CO	$153.03M	-46.30%	-38.40%	-54.23%	-187.10%	0.34	1.16	86.90%	-271.10%	-258.23%
PRZO	PARAZERO TECHNOLOGIES LTD	$16.92M	N/A	-156.10%	-250.28%	-1,783.60%	-19.41	3.87	6.30%	-1,185.90%	-1,185.88%
RDW	REDWIRE CORP	$1.20B	N/A	-52.10%	-49.77%	-83.90%	-3.64	1.20	13.90%	-54.30%	-35.04%
DPRO	DRAGANFLY INC	$16.55M	-788.00%	-173.70%	-878.86%	945.40%	3.69	1.14	21.10%	-227.70%	-229.82%
SWBI	SMITH & WESSON BRANDS INC	$396.13M	3.60%	2.30%	4.84%	4.20%	0.50	4.16	26.80%	2.80%	5.03%
SKYH	SKY HARBOUR GROUP CORP	$748.19M	-42.80%	-6.40%	N/A	-4.40%	4.10	N/A	8.00%	-182.00%	-178.32%
LUNR	INTUITIVE MACHINES INC	$1.91B	N/A	-65.00%	-49.59%	-281.10%	-1.26	4.40	-1.90%	-91.30%	-91.80%
SPCE	VIRGIN GALACTIC HOLDINGS INC	$117.66M	-97.20%	-33.40%	-41.60%	-30.20%	2.32	3.81	-1,501.20%	-5,972.70%	-5,737.17%
HOVR	NEW HORIZON AIRCRAFT LTD	$51.47M	-114.20%	172.30%	112.30%	1,293.20%	0.48	7.11	N/A	N/A	N/A
ACHR	ARCHER AVIATION INC	$5.48B	-80.10%	-61.30%	-44.77%	-360.00%	0.20	15.80	N/A	N/A	N/A
SPR	SPIRIT AEROSYSTEMS HOLDINGS INC	$4.51B	N/A	-31.50%	-57.40%	-23.90%	-3.02	1.03	-22.80%	-34.80%	-28.86%
GPUS	HYPERSCALE DATA INC	$3.03M	-631.70%	-29.80%	-435.03%	-36.00%	33.56	0.28	13.90%	-67.50%	-44.40%
SIDU	SIDUS SPACE INC	$32.40M	-122.60%	-69.00%	-96.18%	-117.80%	0.72	1.16	-82.40%	-521.30%	-492.10%
KITT	NAUTICUS ROBOTICS INC	$34.28M	N/A	-218.70%	-211.48%	-132.40%	30.86	0.78	-488.50%	-4,616.60%	-4,301.82%
RKLB	ROCKET LAB CORP	$16.46B	-48.90%	-17.30%	-22.16%	-21.70%	1.91	2.08	27.30%	-44.30%	-43.12%
EVEX	EVE HOLDING INC	$2.21B	-137.90%	-57.40%	-70.81%	-56.90%	3.00	3.60	N/A	N/A	N/A
TGI	TRIUMPH GROUP INC	$2.00B	-43.80%	2.70%	10.89%	9.30%	-22.28	2.23	31.50%	3.20%	10.63%
SPAI	SAFE PRO GROUP INC	$39.14M	-363.40%	-239.30%	-355.31%	-2,848.20%	0.40	1.70	41.30%	-500.90%	-488.70%
RAIN	RAIN ENHANCEMENT TECHNOLOGIES HOLDCO INC	$23.72M	N/A	-44.70%	96.26%	-60.30%	-1.20	0.09	N/A	N/A	N/A
SHMD	SCHMID GROUP NV	$119.90M	N/A	-37.70%	-153.05%	-38.20%	-3.06	0.60	26.70%	-30.00%	-18.60%
SIF	SIFCO INDUSTRIES INC	$26.30M	-12.90%	-4.40%	-3.05%	-1.90%	1.44	1.25	7.00%	-5.70%	-2.05%
ASTC	ASTROTECH CORP	$9.49M	-46.40%	-42.50%	-55.51%	-56.30%	0.11	9.86	47.50%	-1,537.00%	-1,536.77%
AIRI	AIR INDUSTRIES GROUP	$12.57M	-11.00%	-3.30%	1.02%	0.50%	2.17	1.40	17.00%	-3.10%	0.43%
CVU	CPI AEROSTRUCTURES INC	$42.51M	7.20%	2.70%	12.01%	8.10%	1.62	1.57	19.80%	2.30%	6.08%

Defense Stocks FAQ

What are the best defense stocks to buy right now in Jul 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. Astronics (NASDAQ:ATRO)

Astronics (NASDAQ:ATRO) is the #1 top defense stock out of 76 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 Astronics (NASDAQ:ATRO) is: Value: C, Growth: A, Momentum: A, Sentiment: C, Safety: C, Financials: B, and AI: C.

Astronics (NASDAQ:ATRO) has a Due Diligence Score of 26, which is -4 points lower than the defense industry average of 30. Although this number is below the industry average, our proven quant model rates ATRO as a "A".

ATRO passed 8 out of 33 due diligence checks and has average fundamentals. Astronics has seen its stock return 59.85% over the past year, overperforming other defense stocks by 26 percentage points.

Astronics has an average 1 year price target of $32.00, a downside of -1.63% from Astronics's current stock price of $32.53.

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

2. Ducommun (NYSE:DCO)

Ducommun (NYSE:DCO) is the #2 top defense stock out of 76 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 Ducommun (NYSE:DCO) is: Value: C, Growth: B, Momentum: B, Sentiment: B, Safety: B, Financials: C, and AI: C.

Ducommun (NYSE:DCO) has a Due Diligence Score of 41, which is 11 points higher than the defense industry average of 30.

DCO passed 13 out of 33 due diligence checks and has strong fundamentals. Ducommun has seen its stock return 42.26% over the past year, overperforming other defense stocks by 9 percentage points.

Ducommun has an average 1 year price target of $90.50, an upside of 9.23% from Ducommun's current stock price of $82.85.

Ducommun stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Ducommun, 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. Innovative Solutions & Support (NASDAQ:ISSC)

Innovative Solutions & Support (NASDAQ:ISSC) is the #3 top defense stock out of 76 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 Innovative Solutions & Support (NASDAQ:ISSC) is: Value: C, Growth: B, Momentum: A, Sentiment: A, Safety: D, Financials: C, and AI: C.

Innovative Solutions & Support (NASDAQ:ISSC) has a Due Diligence Score of 43, which is 13 points higher than the defense industry average of 30.

ISSC passed 18 out of 38 due diligence checks and has strong fundamentals. Innovative Solutions & Support has seen its stock return 146.86% over the past year, overperforming other defense stocks by 113 percentage points.

What are the defense stocks with highest dividends?

Out of 22 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 4.96%, which is 4 percentage points higher than the defense industry average of 1.33%.

Transdigm Group's dividend payout ratio of 253.1% 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 4.36%, which is 3 percentage points higher than the defense industry average of 1.33%. 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 173.3% indicates that its high dividend yield might not be sustainable for the long-term.

3. Huntington Ingalls Industries (NYSE:HII)

Huntington Ingalls Industries (NYSE:HII) has an annual dividend yield of 2.14%, which is 1 percentage points higher than the defense industry average of 1.33%. Huntington Ingalls Industries's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Huntington Ingalls Industries's dividend has shown consistent growth over the last 10 years.

Huntington Ingalls Industries's dividend payout ratio of 38.2% indicates that its dividend yield is sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.18% in the last day, and up 2.2% over the last week. Eve Holding was the among the top gainers in the aerospace & defense industry, gaining 12.75% yesterday.

Eve Holding shares are trading higher on possible continued strength after the company announced on Monday that it signed a LOI with Aerosolutions and Bluenest for the sale of up to 50 eVTOL aircraft and access to Eve's techcare services.

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. V2x (NYSE:VVX)

V2x (NYSE:VVX) 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.

V2x has a valuation score of 57, which is 40 points higher than the defense industry average of 17. It passed 4 out of 7 valuation due diligence checks.

V2x's stock has gained 4.19% in the past year. It has underperformed other stocks in the defense industry by -29 percentage points.

2. Textron (NYSE:TXT)

Textron (NYSE:TXT) 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.

Textron has a valuation score of 57, which is 40 points higher than the defense industry average of 17. It passed 4 out of 7 valuation due diligence checks.

Textron's stock has dropped -4.48% in the past year. It has underperformed other stocks in the defense industry by -38 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 29, which is 12 points higher than the defense industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Lockheed Martin's stock has dropped -0.68% in the past year. It has underperformed other stocks in the defense industry by -34 percentage points.

Are defense stocks a good buy now?

52.83% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 2.98% over the next year.

8.82% of defense stocks have a Zen Rating of A (Strong Buy), 20.59% of defense stocks are rated B (Buy), 45.59% are rated C (Hold), 20.59% are rated D (Sell), and 4.41% 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 38.07x.

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 (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.

Defense Stocks FAQ

1. Astronics (NASDAQ:ATRO)

2. Ducommun (NYSE:DCO)

3. Innovative Solutions & Support (NASDAQ:ISSC)

1. Transdigm Group (NYSE:TDG)

2. Smith & Wesson Brands (NASDAQ:SWBI)

3. Huntington Ingalls Industries (NYSE:HII)

1. V2x (NYSE:VVX)

2. Textron (NYSE:TXT)

3. Lockheed Martin (NYSE:LMT)

Company

Stock Tools

Stock Ideas

Sectors & IndustriesIndustrialsAerospace & DefenseBest 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.

Defense Stocks FAQ

1. Astronics (NASDAQ:ATRO)

2. Ducommun (NYSE:DCO)

3. Innovative Solutions & Support (NASDAQ:ISSC)

1. Transdigm Group (NYSE:TDG)

2. Smith & Wesson Brands (NASDAQ:SWBI)

3. Huntington Ingalls Industries (NYSE:HII)

1. V2x (NYSE:VVX)

2. Textron (NYSE:TXT)

3. Lockheed Martin (NYSE:LMT)

Company

Stock Tools

Stock Ideas

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.