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	$14.65	845,000	-21.54%	14.90	15.09	14.96	13.74	11.66	45.32	25.02	18.46	18.49	11.21	-0.07	0.02	-0.10	0.80
VVX	V2X INC	$90.05	662,000	122.15%	84.73	79.14	72.83	70.74	63.86	81.83	90.04	89.28	99.23	97.41	4.42	3.70	0.72	0.80
SIF	SIFCO INDUSTRIES INC	$21.74	76,000	162.07%	20.41	19.99	17.42	14.25	10.48	64.60	57.98	56.34	19.56	12.54	0.97	1.07	-0.10	0.42
MOG.A	MOOG INC	$405.44	267,000	-38.05%	376.08	349.08	324.97	319.42	269.68	81.51	92.68	90.72	94.97	91.58	20.25	15.96	4.29	1.01
GD	GENERAL DYNAMICS CORP	$358.86	1,709,000	124.57%	343.51	342.55	340.15	347.08	343.04	62.69	62.37	55.93	66.30	56.29	1.81	0.79	1.01	0.56
PKE	PARK AEROSPACE CORP	$35.91	256,000	5.35%	33.27	33.87	33.16	29.61	24.87	58.44	55.97	43.47	51.61	33.21	0.24	0.22	0.02	0.74
HWM	HOWMET AEROSPACE INC	$264.60	2,441,000	-9.02%	253.22	256.62	252.75	244.66	221.02	56.99	65.82	46.81	70.59	48.40	0.07	0.31	-0.24	1.15
ATRO	ASTRONICS CORP	$94.80	1,272,000	161.73%	85.93	84.19	78.07	76.03	62.76	66.98	59.27	52.53	35.25	14.37	2.85	2.67	0.18	1.29
CVU	CPI AEROSTRUCTURES INC	$5.14	104,000	-26.24%	5.05	4.73	4.06	4.10	3.47	64.61	62.08	63.92	13.98	11.05	0.28	0.30	-0.02	0.76
WWD	WOODWARD INC	$388.21	661,000	-23.67%	360.06	357.37	368.68	368.19	320.43	62.08	87.46	85.22	88.34	90.50	1.90	-2.18	4.08	1.03
AIR	AAR CORP	$127.23	326,000	16.01%	115.62	111.95	113.94	112.07	97.48	66.82	90.67	88.03	89.05	89.29	2.32	0.77	1.55	1.12
HXL	HEXCEL CORP	$97.36	841,000	69.22%	90.44	89.36	88.82	86.93	78.37	66.17	91.00	84.45	92.91	86.26	0.94	0.27	0.67	1.10
ESLT	ELBIT SYSTEMS LTD	$913.20	194,000	195.73%	847.91	820.72	844.57	817.50	668.04	63.17	66.54	56.93	66.73	56.85	8.58	1.97	6.62	0.45
LHX	L3HARRIS TECHNOLOGIES INC	$312.17	1,148,000	44.58%	307.94	308.72	322.88	338.49	314.99	50.29	51.92	40.85	67.30	49.31	-3.39	-4.39	1.01	0.43
TXT	TEXTRON INC	$93.75	1,139,000	-1.04%	91.61	91.18	90.97	92.35	88.26	57.39	74.94	70.62	79.56	75.10	0.38	0.17	0.21	1.04
RTX	RTX CORP	$184.21	6,492,000	7.55%	178.31	177.14	182.67	191.46	181.76	57.03	77.66	73.86	85.92	84.83	-0.09	-1.20	1.12	0.59
CODA	CODA OCTOPUS GROUP INC	$11.90	166,000	62.75%	12.17	12.00	12.03	12.32	10.64	48.74	15.92	18.63	13.28	12.40	-0.06	0.03	-0.10	0.48
DRS	LEONARDO DRS INC	$49.69	1,031,000	58.86%	47.23	45.79	44.32	43.54	41.02	64.97	72.48	67.03	32.16	26.34	1.21	1.04	0.17	0.97
BWXT	BWX TECHNOLOGIES INC	$194.68	794,000	7.30%	188.71	195.63	210.16	206.91	195.81	47.22	32.07	24.72	60.47	48.42	-6.05	-6.12	0.07	0.89
CW	CURTISS WRIGHT CORP	$757.23	190,000	-24.60%	733.03	731.75	725.65	701.11	625.62	58.11	58.62	53.56	41.85	31.15	3.68	3.67	0.01	0.93
CAE	CAE INC	$25.49	958,000	80.08%	25.44	25.44	26.06	27.91	28.14	48.66	69.20	62.78	79.10	71.22	-0.21	-0.27	0.06	1.20
HEI	HEICO CORP	$339.22	481,000	51.74%	331.71	317.80	295.74	305.80	313.18	64.42	59.64	57.78	14.92	14.04	11.06	11.17	-0.11	0.88
DCO	DUCOMMUN INC	$165.00	338,000	86.74%	152.33	149.36	143.39	132.96	113.71	68.98	90.95	83.85	88.66	76.66	4.08	3.13	0.95	0.93
RGR	STURM RUGER & CO INC	$39.30	119,000	-6.30%	38.93	39.31	40.52	39.43	38.33	48.02	25.54	17.47	55.66	34.40	-0.40	-0.44	0.04	0.51
MRCY	MERCURY SYSTEMS INC	$119.32	807,000	62.05%	112.24	104.47	91.07	88.56	82.13	70.00	72.35	68.91	17.77	12.34	6.80	6.61	0.20	0.96
TDG	TRANSDIGM GROUP INC	$1,257.59	207,000	-1.90%	1,235.56	1,219.88	1,208.45	1,250.44	1,284.87	55.79	56.78	53.30	40.56	34.46	10.01	8.94	1.07	1.00
AVEX	AEVEX CORP	$21.46	2,224,000	21.33%	27.17	27.78	N/A	N/A	N/A	49.04	4.37	3.32	1.74	0.72	N/A	N/A	N/A	1.36
LMT	LOCKHEED MARTIN CORP	$548.68	1,183,000	51.09%	523.91	525.52	547.12	590.01	536.55	59.72	69.27	54.97	92.35	79.80	-2.86	-6.70	3.83	0.24
EMBJ	EMBRAER SA	$56.10	1,166,000	4.67%	56.31	56.66	61.36	64.65	63.60	43.74	29.19	35.86	48.20	54.62	-1.49	-1.55	0.06	1.30
LOAR	LOAR HOLDINGS INC	$68.91	579,000	1.22%	64.47	62.90	61.50	63.97	68.89	64.57	83.27	75.09	75.56	63.11	1.42	0.96	0.46	1.44
SARO	STANDARDAERO INC	$25.95	4,110,000	35.73%	25.83	26.15	25.98	27.75	27.68	49.80	26.23	22.69	19.89	14.07	-0.20	-0.05	-0.15	1.16
ISSC	INNOVATIVE SOLUTIONS & SUPPORT INC	$19.37	472,000	66.78%	17.58	17.00	19.85	21.90	17.17	55.92	83.45	78.54	90.71	86.34	-0.51	-0.90	0.39	0.84
HII	HUNTINGTON INGALLS INDUSTRIES INC	$300.95	497,000	143.63%	295.32	309.49	345.59	381.40	345.62	40.03	22.32	17.43	79.94	66.50	-14.64	-15.78	1.14	0.60
OPXS	OPTEX SYSTEMS HOLDINGS INC	$13.27	135,000	92.86%	12.24	11.56	11.46	12.56	13.30	62.70	75.58	82.53	68.32	82.59	0.44	0.23	0.21	0.72
VSEC	VSE CORP	$193.16	597,000	85.98%	180.28	175.94	186.94	195.39	184.21	57.29	68.85	61.91	59.49	55.38	-0.63	-2.19	1.57	1.32
POWW	OUTDOOR HOLDING CO	$2.02	220,000	-28.80%	2.02	2.02	2.03	1.98	1.82	49.94	36.04	31.12	29.36	17.40	-0.00	0.00	-0.00	1.24
AXON	AXON ENTERPRISE INC	$446.20	885,000	24.12%	471.39	433.79	409.92	453.73	552.71	52.70	52.73	59.65	30.59	40.00	16.07	15.35	0.73	1.18
NOC	NORTHROP GRUMMAN CORP	$552.52	896,000	19.31%	543.93	548.08	590.33	648.68	617.08	46.67	57.71	51.56	93.80	87.47	-11.06	-14.67	3.61	0.22
GE	GE AEROSPACE	$332.76	3,217,000	2.88%	324.03	312.10	302.04	307.26	303.58	61.90	86.18	84.71	46.53	58.62	8.28	7.09	1.19	1.10
ARXS	ARXIS INC	$41.38	829,000	42.93%	41.64	39.27	N/A	N/A	N/A	54.58	45.90	45.55	44.80	45.13	N/A	N/A	N/A	1.48
CDRE	CADRE HOLDINGS INC	$30.96	238,000	-7.03%	30.23	30.22	30.55	34.97	37.27	52.97	38.64	37.22	42.63	37.04	-0.10	-0.16	0.06	0.89
PL	PLANET LABS PBC	$34.17	14,460,000	49.10%	39.34	42.05	38.88	32.37	23.29	40.94	12.02	8.37	5.89	2.53	-1.55	0.48	-2.03	1.83
MDA	MDA SPACE LTD	$40.83	1,356,000	109.91%	40.48	41.26	35.84	N/A	N/A	54.82	23.05	16.82	7.51	3.30	0.99	1.83	-0.85	2.53
KRMN	KARMAN HOLDINGS INC	$49.58	3,104,000	3.09%	51.49	57.97	68.59	82.21	77.55	36.47	9.74	7.58	13.68	5.12	-5.88	-5.34	-0.53	1.64
NPK	NATIONAL PRESTO INDUSTRIES INC	$129.99	149,000	2.76%	129.49	132.96	137.64	134.27	120.86	44.87	31.23	30.51	54.27	46.61	-2.31	-2.33	0.01	0.62
AOUT	AMERICAN OUTDOOR BRANDS INC	$10.29	25,000	-72.22%	10.04	9.72	9.50	9.17	8.59	59.58	83.15	79.91	62.76	61.01	0.23	0.19	0.04	0.95
BA	BOEING CO	$221.63	6,591,000	-2.37%	217.77	219.79	222.91	224.38	218.91	50.84	27.32	23.35	31.59	26.46	-2.51	-1.84	-0.68	1.15
SPAI	SAFE PRO GROUP INC	$5.37	170,000	-10.05%	5.72	5.04	4.56	4.65	5.26	55.56	48.04	52.77	23.62	34.85	0.30	0.32	-0.02	1.52
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$58.78	3,945,000	45.30%	59.88	57.97	62.57	77.93	80.29	48.30	25.53	28.10	25.88	30.30	-1.17	-1.32	0.16	1.25
TATT	TAT TECHNOLOGIES LTD	$43.98	133,000	5.56%	43.08	39.82	39.00	45.43	43.41	58.03	60.34	65.86	38.31	52.41	1.51	1.12	0.40	0.67
SIDU	SIDUS SPACE INC	$4.39	27,603,000	64.99%	4.36	4.47	4.02	3.24	2.35	51.74	13.86	14.66	9.64	3.92	0.10	0.22	-0.12	1.83
AZ	A2Z CUST2MATE SOLUTIONS CORP	$5.95	336,000	-14.07%	6.49	6.41	7.12	6.62	6.84	39.45	7.26	16.00	1.52	15.01	-0.21	-0.16	-0.05	1.20
RKLB	ROCKET LAB CORP	$114.78	24,095,000	88.45%	117.56	126.42	100.00	86.54	72.34	50.02	16.37	13.77	6.68	3.91	2.27	6.77	-4.50	2.08
VHUB	VENHUB GLOBAL INC	$1.19	263,000	-3.66%	1.60	1.48	1.04	N/A	N/A	44.85	7.97	15.08	2.47	1.26	0.08	0.15	-0.07	2.26
BETA	BETA TECHNOLOGIES INC	$17.00	1,065,000	-13.77%	17.52	16.81	16.77	17.80	N/A	49.81	32.23	40.55	23.30	33.89	0.05	0.18	-0.12	3.10
SPCE	VIRGIN GALACTIC HOLDINGS INC	$5.73	115,054,000	237.59%	5.08	4.09	3.29	2.95	3.27	62.66	39.04	33.63	21.80	21.79	0.57	0.52	0.05	2.08
AVAV	AEROVIRONMENT INC	$183.69	656,000	-16.43%	191.53	181.97	184.59	215.13	260.00	49.44	30.59	35.24	19.19	25.50	0.47	1.27	-0.79	1.11
MNTS	MOMENTUS INC	$16.30	21,426,000	297.29%	14.40	12.12	7.87	6.59	11.97	61.98	45.90	43.85	10.65	6.70	2.02	2.24	-0.22	2.18
SATL	SATELLOGIC INC	$7.52	11,593,000	47.18%	7.72	8.76	7.71	5.77	4.19	46.66	11.89	7.30	10.20	3.40	-0.22	0.16	-0.39	1.24
VWAV	VISIONWAVE HOLDINGS INC	$5.20	276,000	-29.41%	5.57	5.45	5.88	7.04	8.78	44.96	13.01	18.46	19.50	26.85	-0.18	-0.15	-0.03	0.21
YSS	YORK SPACE SYSTEMS INC	$33.72	2,465,000	111.41%	30.16	29.49	31.82	N/A	N/A	56.50	40.17	34.57	34.97	25.52	-0.25	-0.32	0.07	2.70
VTSI	VIRTRA INC	$3.41	29,500	-77.65%	3.37	3.40	3.93	4.17	4.72	41.90	49.17	42.78	77.97	72.09	-0.16	-0.20	0.03	0.72
RDW	REDWIRE CORP	$17.09	67,783,000	122.09%	19.06	18.30	13.28	11.46	9.74	51.26	16.09	24.27	4.33	1.62	1.28	2.10	-0.82	2.10
AADX	APPLIED AEROSPACE & DEFENSE INC	$22.09	2,404,000	71.47%	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	5.22
LUNR	INTUITIVE MACHINES INC	$30.64	21,825,000	162.67%	33.28	34.82	29.53	23.92	17.86	47.65	12.07	8.29	7.23	2.87	-0.05	1.50	-1.55	0.90
FJET	STARFIGHTERS SPACE INC	$6.75	2,218,000	61.66%	8.26	7.06	6.17	6.75	N/A	48.58	43.03	49.87	18.72	28.98	0.56	0.61	-0.05	3.78
PRZO	PARAZERO TECHNOLOGIES LTD	$0.61	1,408,000	-80.83%	0.71	0.63	0.67	0.89	1.14	46.25	17.36	20.92	29.44	38.95	-0.01	-0.00	-0.00	0.83
DPRO	DRAGANFLY INC	$6.51	1,556,000	22.52%	6.75	6.41	5.87	6.46	7.11	52.56	22.30	27.63	9.69	8.65	0.16	0.27	-0.11	1.25
DFSC	DEFSEC TECHNOLOGIES INC	$3.95	72,000	102.25%	4.00	4.08	3.26	2.67	2.97	51.82	15.68	17.55	9.80	4.14	0.11	0.24	-0.13	1.31
BYRN	BYRNA TECHNOLOGIES INC	$6.45	288,000	-3.68%	6.20	5.85	6.20	9.21	14.35	56.79	71.70	67.28	73.69	69.61	0.05	-0.07	0.12	1.16
PEW	GRABAGUN DIGITAL HOLDINGS INC	$2.60	258,000	69.74%	2.60	2.70	2.86	2.91	3.61	40.52	22.51	21.73	48.62	47.12	-0.09	-0.09	-0.01	0.31
EH	EHANG HOLDINGS LTD	$6.82	1,558,000	-26.96%	8.61	9.10	9.96	10.90	13.41	30.75	6.86	12.85	3.87	11.41	-0.75	-0.44	-0.31	1.71
FLY	FIREFLY AEROSPACE INC	$39.37	10,060,000	97.37%	39.37	43.24	39.42	31.43	30.03	48.76	11.57	6.29	8.34	2.86	-0.71	0.87	-1.59	3.22
KITT	NAUTICUS ROBOTICS INC	$1.48	194,000	48.09%	1.66	1.70	2.53	4.56	11.37	31.21	4.43	7.21	30.29	38.23	-0.29	-0.33	0.04	0.95
AIRO	AIRO GROUP HOLDINGS INC	$8.46	506,000	-17.72%	8.81	7.75	7.91	8.99	11.84	53.76	60.82	62.70	51.57	57.32	0.26	0.20	0.05	2.82
HAWK	HAWKEYE 360 INC	$25.64	1,130,000	76.01%	27.17	29.16	N/A	N/A	N/A	34.29	12.65	12.33	N/A	N/A	N/A	N/A	N/A	2.95
ASTC	ASTROTECH CORP	$26.50	1,038,000	26.74%	34.82	20.54	10.18	6.55	5.33	56.23	34.71	37.17	34.93	37.51	6.70	7.24	-0.54	0.47
ACHR	ARCHER AVIATION INC	$5.30	40,438,000	17.68%	6.02	6.13	5.97	6.38	7.81	37.34	7.99	9.72	5.59	5.24	-0.18	-0.00	-0.17	2.08
EVTL	VERTICAL AEROSPACE LTD	$2.21	2,056,000	-11.26%	2.37	2.48	2.51	3.34	4.28	39.81	12.20	9.35	9.67	3.69	-0.12	-0.07	-0.05	1.38
HOVR	NEW HORIZON AIRCRAFT LTD	$2.26	1,246,000	-20.08%	2.40	2.49	2.15	2.01	2.04	47.40	6.73	7.37	6.40	2.13	0.00	0.08	-0.08	1.24
VOYG	VOYAGER TECHNOLOGIES INC	$47.87	5,666,000	169.55%	45.22	43.52	34.61	31.37	29.82	60.37	40.86	34.77	14.27	6.64	3.00	3.74	-0.74	3.25
MRLN	MERLIN INC	$7.02	2,613,000	-13.22%	7.53	7.30	9.05	9.66	10.18	43.42	21.82	34.60	31.34	52.73	-0.41	-0.48	0.07	0.24
EVEX	EVE HOLDING INC	$2.71	1,076,000	6.53%	3.02	3.04	2.93	3.06	3.67	40.24	8.75	8.43	6.18	2.06	-0.06	0.02	-0.08	0.88
SKYH	SKY HARBOUR GROUP CORP	$9.12	106,000	1.92%	9.28	9.15	9.86	9.52	9.60	44.29	52.43	54.47	67.91	71.51	-0.14	-0.18	0.04	0.33
AIRI	AIR INDUSTRIES GROUP	$3.09	47,700	-29.85%	3.03	2.98	3.07	3.18	3.15	56.51	69.44	71.87	60.15	58.07	-0.00	-0.01	0.01	0.50
GPUS	HYPERSCALE DATA INC	$0.17	32,940,000	86.83%	0.18	0.17	0.15	0.17	0.27	50.57	22.71	26.85	15.87	17.15	0.01	0.01	-0.00	1.38
FACT	FACT II ACQUISITION CORP	$10.63	2,700	-76.32%	10.65	10.65	10.59	10.54	10.50	51.49	95.51	96.10	10.74	20.94	0.02	0.02	-0.00	0.28
DUKR	DUKE ROBOTICS CORP	$6.58	38,400	129.94%	6.58	N/A	N/A	N/A	N/A	35.29	N/A	N/A	N/A	N/A	N/A	N/A	N/A	1.70

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 36.92% over the past year, overperforming other defense stocks by 14 percentage points.

Smith & Wesson Brands has an average 1 year price target of $14.00, a downside of -4.44% from Smith & Wesson Brands's current stock price of $14.65.

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 100.78% over the past year, overperforming other defense stocks by 78 percentage points.

V2x has an average 1 year price target of $79.11, a downside of -12.15% from V2x's current stock price of $90.05.

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 505.57% over the past year, overperforming other defense stocks by 482 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 3.55%, which is 3 percentage points higher than the defense industry average of 0.95%. 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 2.49%, which is 2 percentage points higher than the defense industry average of 0.95%. 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. Northrop Grumman (NYSE:NOC)

Northrop Grumman (NYSE:NOC) has an annual dividend yield of 1.7%, which is 1 percentage points higher than the defense industry average of 0.95%. 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.

Why are defense stocks up?

Defense stocks were up 5.71% in the last day, and up 2.09% over the last week. Momentus was the among the top gainers in the aerospace & defense industry, gaining 43.74% 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 15 points higher than the defense industry average of 14. It passed 2 out of 7 valuation due diligence checks.

Textron's stock has gained 22.07% in the past year. It has underperformed other stocks in the defense industry by -1 percentage points.

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

Huntington Ingalls Industries's stock has gained 33.08% in the past year. It has overperformed other stocks in the defense industry by 10 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 15 points higher than the defense industry average of 14. It passed 2 out of 7 valuation due diligence checks.

V2x's stock has gained 100.78% in the past year. It has overperformed other stocks in the defense industry by 78 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 16.22% over the next year.

5.95% 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), 15.48% 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 29.08x.

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. Northrop Grumman (NYSE:NOC)

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. Northrop Grumman (NYSE:NOC)

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.