Sectors & IndustriesIndustrialsAerospace & 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.

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:

Smith & Wesson Brands (NASDAQ:SWBI) is the #1 top defense stock out of 90 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: C, Growth: B, Momentum: C, Sentiment: A, Safety: C, Financials: A, and AI: B.

Smith & Wesson Brands (NASDAQ:SWBI) has a Due Diligence Score of 48, which is 17 points higher than the defense industry average of 31.

SWBI passed 17 out of 38 due diligence checks and has strong fundamentals. Smith & Wesson Brands has seen its stock return 85.77% over the past year, overperforming other defense stocks by 75 percentage points.

Smith & Wesson Brands has an average 1 year price target of $16.50, an upside of 5.36% from Smith & Wesson Brands's current stock price of $15.66.

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.

Astronics (NASDAQ:ATRO) is the #2 top defense stock out of 90 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: C, Safety: B, Financials: B, and AI: C.

Astronics (NASDAQ:ATRO) has a Due Diligence Score of 41, which is 10 points higher than the defense industry average of 31.

ATRO passed 14 out of 33 due diligence checks and has strong fundamentals. Astronics has seen its stock return 101.31% over the past year, overperforming other defense stocks by 90 percentage points.

Astronics has an average 1 year price target of $103.50, an upside of 43.69% from Astronics's current stock price of $72.03.

Astronics stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts 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.

Sifco Industries (NYSEMKT:SIF) is the #3 top defense stock out of 90 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 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 5 points higher than the defense industry average of 31.

SIF passed 11 out of 33 due diligence checks and has average fundamentals. Sifco Industries has seen its stock return 353.25% over the past year, overperforming other defense stocks by 342 percentage points.

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

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 3.32%, which is 2 percentage points higher than the defense industry average of 0.98%. 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 123.8% indicates that its dividend yield might not be sustainable for the long-term.

Lockheed Martin (NYSE:LMT) has an annual dividend yield of 2.62%, which is 2 percentage points higher than the defense industry average of 0.98%. 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.

Northrop Grumman (NYSE:NOC) has an annual dividend yield of 1.73%, which is 1 percentage points higher than the defense industry average of 0.98%. Northrop Grumman's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Northrop Grumman's dividend has shown consistent growth over the last 10 years.

Northrop Grumman's dividend payout ratio of 28.9% indicates that its dividend yield is sustainable for the long-term.

Defense stocks were down -2.29% in the last day, and down -7.57% over the last week. Firefly Aerospace was the among the top losers in the aerospace & defense industry, dropping -7.56% yesterday.

Shares of space-related companies are trading lower amid declines for highly leveraged growth stocks, as energy prices rebound and threaten heightened borrowing costs and less capex spending on the sector.

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:

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 13 points higher than the defense industry average of 16. It passed 2 out of 7 valuation due diligence checks.

Textron's stock has gained 4.72% in the past year. It has underperformed other stocks in the defense industry by -6 percentage points.

Huntington Ingalls Industries (NYSE:HII) 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.

Huntington Ingalls Industries has a valuation score of 29, which is 13 points higher than the defense industry average of 16. It passed 2 out of 7 valuation due diligence checks.

Huntington Ingalls Industries's stock has gained 10.2% in the past year. It has underperformed other stocks in the defense industry by -1 percentage points.

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 43, which is 27 points higher than the defense industry average of 16. It passed 3 out of 7 valuation due diligence checks.

V2x's stock has gained 52.88% in the past year. It has overperformed other stocks in the defense industry by 42 percentage points.

65.71% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 21.73% over the next year.

7.14% of defense stocks have a Zen Rating of A (Strong Buy), 21.43% of defense stocks are rated B (Buy), 45.24% are rated C (Hold), 14.29% are rated D (Sell), and 11.9% are rated F (Strong Sell).