Sectors & IndustriesIndustrialsAerospace & 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.

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:

Ducommun (NYSE:DCO) is the #1 top defense stock out of 77 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: C, Safety: B, Financials: B, and AI: C.

Ducommun (NYSE:DCO) has a Due Diligence Score of 43, which is 13 points higher than the defense industry average of 30.

DCO passed 14 out of 33 due diligence checks and has strong fundamentals. Ducommun has seen its stock return 47.09% over the past year, overperforming other defense stocks by 22 percentage points.

Ducommun has an average 1 year price target of $119.75, an upside of 26.11% from Ducommun's current stock price of $94.96.

Ducommun stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Ducommun, 75% have issued a Strong Buy rating, 25% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Moog (NYSE:MOG.A) is the #2 top defense stock out of 77 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 Moog (NYSE:MOG.A) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Moog (NYSE:MOG.A) has a Due Diligence Score of 35, which is 5 points higher than the defense industry average of 30.

MOG.A passed 14 out of 38 due diligence checks and has average fundamentals. Moog has seen its stock lose -0.01% over the past year, underperforming other defense stocks by -25 percentage points.

Moog has an average 1 year price target of $210.00, an upside of 7.26% from Moog's current stock price of $195.78.

Moog stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Moog, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

V2x (NYSE:VVX) is the #3 top defense stock out of 77 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: A, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

V2x (NYSE:VVX) has a Due Diligence Score of 44, which is 14 points higher than the defense industry average of 30.

VVX passed 14 out of 33 due diligence checks and has strong fundamentals. V2x has seen its stock return 9.49% over the past year, underperforming other defense stocks by -15 percentage points.

V2x has an average 1 year price target of $58.25, an upside of 1.84% from V2x's current stock price of $57.20.

V2x stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering V2x, 75% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 25% have issued a Strong Sell.

Out of 22 defense stocks that have issued dividends in the past year, the 3 defense stocks with the highest dividend yields are:

Transdigm Group (NYSE:TDG) has an annual dividend yield of 5.88%, which is 5 percentage points higher than the defense industry average of 1.34%.

Transdigm Group's dividend payout ratio of 248.8% indicates that its high dividend yield might not be sustainable for the long-term.

Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 4.14%, which is 3 percentage points higher than the defense industry average of 1.34%. 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 192.6% indicates that its high dividend yield might not be sustainable for the long-term.

Lockheed Martin (NYSE:LMT) has an annual dividend yield of 2.09%, which is 1 percentage points higher than the defense industry average of 1.34%. 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 73.1% indicates that its dividend yield is sustainable for the long-term.

Defense stocks were down -1% in the last day, and up 0.42% over the last week.

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

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:

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 71, which is 53 points higher than the defense industry average of 18. It passed 5 out of 7 valuation due diligence checks.

V2x's stock has gained 9.49% in the past year. It has underperformed other stocks in the defense industry by -15 percentage points.

Textron (NYSE:TXT) 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.

Textron has a valuation score of 57, which is 39 points higher than the defense industry average of 18. It passed 4 out of 7 valuation due diligence checks.

Textron's stock has dropped -6.74% in the past year. It has underperformed other stocks in the defense industry by -32 percentage points.

Huntington Ingalls Industries (NYSE:HII) 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.

Huntington Ingalls Industries has a valuation score of 43, which is 25 points higher than the defense industry average of 18. It passed 3 out of 7 valuation due diligence checks.

Huntington Ingalls Industries's stock has gained 2.66% in the past year. It has underperformed other stocks in the defense industry by -22 percentage points.

57.89% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 10.43% over the next year.

5.71% of defense stocks have a Zen Rating of A (Strong Buy), 24.29% of defense stocks are rated B (Buy), 45.71% are rated C (Hold), 12.86% are rated D (Sell), and 11.43% are rated F (Strong Sell).