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 74th 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
MOG.A	MOOG INC	$7.48B	12.40%	5.40%	11.63%	11.10%	1.22	2.12	27.40%	6.10%	9.97%
VVX	V2X INC	$1.79B	7.60%	2.50%	8.09%	14.90%	1.94	1.20	8.50%	1.80%	4.15%
ATRO	ASTRONICS CORP	$1.81B	-1.40%	-0.50%	2.56%	2.20%	5.26	2.87	27.50%	-0.40%	1.64%
LMT	LOCKHEED MARTIN CORP	$103.75B	68.50%	7.30%	16.09%	14.40%	8.75	1.13	8.20%	5.70%	8.18%
WWD	WOODWARD INC	$18.06B	18.50%	9.80%	15.23%	19.90%	0.80	2.08	26.80%	12.40%	15.90%
TXT	TEXTRON INC	$14.65B	11.20%	4.80%	8.62%	8.80%	1.32	1.69	20.40%	5.80%	7.75%
RTX	RTX CORP	$229.69B	10.60%	4.00%	8.62%	15.50%	1.59	1.07	20.10%	7.70%	11.58%
HII	HUNTINGTON INGALLS INDUSTRIES INC	$12.40B	11.80%	4.70%	8.49%	9.40%	1.47	1.14	12.50%	4.70%	6.79%
DCO	DUCOMMUN INC	$1.35B	-5.10%	-3.00%	-3.74%	-4.40%	0.92	2.04	25.80%	-4.30%	-4.24%
HWM	HOWMET AEROSPACE INC	$78.91B	29.70%	13.30%	20.48%	26.10%	1.17	2.35	33.40%	18.20%	24.53%
BWXT	BWX TECHNOLOGIES INC	$16.30B	26.70%	9.20%	13.33%	12.30%	2.05	1.71	23.50%	10.00%	13.66%
OPXS	OPTEX SYSTEMS HOLDINGS INC	$104.19M	24.70%	19.20%	25.99%	30.40%	0.26	5.14	28.00%	13.00%	16.11%
GD	GENERAL DYNAMICS CORP	$92.30B	18.30%	7.40%	13.80%	23.20%	1.36	1.40	15.30%	8.20%	10.48%
LHX	L3HARRIS TECHNOLOGIES INC	$52.47B	9.10%	4.30%	7.71%	14.70%	1.10	1.14	25.60%	8.10%	12.18%
NOC	NORTHROP GRUMMAN CORP	$78.92B	26.00%	8.20%	15.11%	17.30%	2.08	1.11	19.40%	9.80%	13.51%
CDRE	CADRE HOLDINGS INC	$1.78B	13.90%	6.30%	11.43%	16.00%	1.33	3.64	42.70%	7.30%	12.67%
ISSC	INNOVATIVE SOLUTIONS & SUPPORT INC	$175.93M	22.90%	13.50%	20.09%	22.50%	0.62	3.53	45.20%	15.10%	20.88%
ESLT	ELBIT SYSTEMS LTD	$22.25B	12.60%	3.90%	9.70%	9.60%	2.06	1.32	24.20%	5.90%	8.35%
EMBJ	EMBRAER SA	$11.69B	12.00%	3.10%	13.10%	16.10%	2.76	1.48	18.00%	5.50%	15.18%
DRS	LEONARDO DRS INC	$9.13B	10.20%	6.40%	10.56%	19.50%	0.60	2.00	23.40%	7.40%	9.36%
CW	CURTISS WRIGHT CORP	$20.28B	18.10%	9.20%	15.97%	24.50%	1.02	1.75	37.40%	13.80%	18.93%
AIR	AAR CORP	$3.03B	2.40%	1.00%	5.70%	5.40%	1.35	2.91	19.00%	1.00%	4.77%
LOAR	LOAR HOLDINGS INC	$6.35B	5.60%	4.20%	6.66%	18.80%	0.32	5.92	51.90%	13.30%	20.82%
CODA	CODA OCTOPUS GROUP INC	$98.88M	6.30%	5.80%	7.45%	17.40%	0.08	11.37	65.90%	14.10%	17.66%
HEI	HEICO CORP	$43.94B	16.60%	8.00%	11.64%	20.10%	0.94	3.35	39.50%	15.00%	21.23%
MRCY	MERCURY SYSTEMS INC	$4.29B	-2.20%	-1.40%	-0.54%	-0.90%	0.67	3.37	28.50%	-3.50%	-1.23%
SARO	STANDARDAERO INC	$8.90B	7.50%	2.90%	8.84%	10.20%	1.57	2.18	15.00%	3.10%	7.96%
TATT	TAT TECHNOLOGIES LTD	$519.58M	11.10%	8.10%	10.00%	12.70%	0.31	4.44	24.30%	9.10%	10.84%
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$13.12B	1.20%	0.90%	1.54%	3.10%	0.22	4.30	22.90%	1.60%	2.56%
PL	PLANET LABS PBC	$3.98B	-20.30%	-13.80%	-17.83%	-47.90%	0.60	1.75	58.90%	-34.50%	-33.49%
CAE	CAE INC	$8.77B	8.90%	3.90%	9.04%	9.80%	1.17	0.84	28.10%	9.00%	16.17%
POWW	OUTDOOR HOLDING CO	$227.20M	-45.60%	-37.50%	-44.62%	-310.80%	0.15	3.45	429.70%	-1,028.20%	-1,016.10%
KRMN	KARMAN HOLDINGS INC	$8.80B	3.60%	1.30%	7.63%	9.30%	1.62	2.86	40.00%	2.60%	15.63%
BYRN	BYRNA TECHNOLOGIES INC	$437.69M	27.30%	21.40%	18.52%	25.00%	0.24	4.21	61.30%	14.40%	10.85%
HXL	HEXCEL CORP	$6.18B	4.50%	2.50%	4.84%	4.10%	0.76	2.75	23.00%	3.70%	6.37%
TDG	TRANSDIGM GROUP INC	$76.60B	-28.00%	8.40%	20.27%	14.10%	-3.36	3.21	60.10%	21.10%	47.57%
PKE	PARK AEROSPACE CORP	$391.15M	6.90%	6.00%	10.14%	14.00%	0.10	17.57	29.50%	11.60%	17.95%
RGR	STURM RUGER & CO INC	$513.72M	0.90%	0.70%	0.47%	0.50%	0.22	3.54	16.20%	0.50%	0.25%
SWBI	SMITH & WESSON BRANDS INC	$395.09M	3.30%	2.10%	4.55%	3.90%	0.52	5.21	26.50%	2.60%	4.84%
VSEC	VSE CORP	$3.54B	1.10%	0.70%	3.56%	4.00%	0.59	3.94	13.40%	1.00%	4.41%
AVAV	AEROVIRONMENT INC	$14.35B	-2.60%	-2.00%	-0.77%	-4.50%	0.27	5.96	30.60%	-4.10%	-3.81%
SPCE	VIRGIN GALACTIC HOLDINGS INC	$283.77M	-108.00%	-32.40%	-40.34%	-28.30%	2.78	2.87	-4,403.30%	-17,615.70%	-16,842.69%
BETA	BETA TECHNOLOGIES INC	$6.83B	N/A	N/A	N/A	N/A	0.35	10.43	N/A	N/A	N/A
SATL	SATELLOGIC INC	$237.07M	N/A	N/A	N/A	N/A	-2.25	1.08	N/A	N/A	N/A
SPR	SPIRIT AEROSYSTEMS HOLDINGS INC	$4.63B	N/A	-40.60%	-340.33%	-34.40%	-2.35	0.68	-27.70%	-40.70%	-34.32%
BA	BOEING CO	$153.44B	N/A	-6.60%	-14.81%	-7.90%	-19.19	1.18	1.10%	-12.60%	-8.57%
VTSI	VIRTRA INC	$56.39M	-1.30%	-0.90%	-0.68%	-0.90%	0.41	4.40	68.00%	-2.40%	-1.59%
MNTS	MOMENTUS INC	$19.08M	N/A	-281.80%	-1,529.91%	3,438.90%	-29.24	0.41	99.80%	-3,445.30%	-3,375.58%
NPK	NATIONAL PRESTO INDUSTRIES INC	$681.29M	10.40%	8.20%	12.12%	12.50%	0.33	3.53	18.00%	8.20%	9.99%
RKLB	ROCKET LAB CORP	$26.37B	-28.40%	-12.70%	-12.65%	-23.40%	0.73	3.18	31.70%	-35.60%	-41.22%
DPRO	DRAGANFLY INC	$192.37M	-72.70%	-59.00%	-25.79%	-6,597.50%	0.09	11.81	19.50%	-243.30%	-245.15%
KITT	NAUTICUS ROBOTICS INC	$16.04M	N/A	-272.60%	2,755.94%	-305.80%	-11.38	0.21	-137.30%	-2,265.00%	-2,161.43%
AOUT	AMERICAN OUTDOOR BRANDS INC	$89.20M	-2.60%	-1.80%	-2.15%	-2.30%	0.44	4.02	44.80%	-2.20%	-2.04%
SKYH	SKY HARBOUR GROUP CORP	$737.62M	-3.90%	-0.80%	N/A	-0.40%	3.38	N/A	6.60%	-17.80%	-14.89%
EH	EHANG HOLDINGS LTD	$1.06B	-29.20%	-16.70%	-22.36%	-25.40%	0.83	2.33	61.50%	-67.00%	-65.78%
AXON	AXON ENTERPRISE INC	$43.45B	9.70%	4.40%	4.43%	5.20%	1.20	3.12	60.30%	10.10%	9.19%
AIRO	AIRO GROUP HOLDINGS INC	$300.20M	N/A	N/A	N/A	N/A	0.05	3.32	N/A	N/A	N/A
SIDU	SIDUS SPACE INC	$28.41M	-116.40%	-67.30%	-95.74%	-123.70%	0.66	1.38	-129.80%	-655.40%	-647.02%
VOYG	VOYAGER TECHNOLOGIES INC	$1.40B	N/A	N/A	N/A	N/A	0.19	4.92	N/A	N/A	N/A
RDW	REDWIRE CORP	$1.01B	-67.90%	-30.10%	-15.29%	-91.60%	0.45	1.41	3.90%	-90.50%	-66.95%
AZ	A2Z CUST2MATE SOLUTIONS CORP	$281.31M	-83.40%	-66.90%	-42.78%	-278.30%	0.15	8.58	33.80%	-483.60%	-476.43%
PRZO	PARAZERO TECHNOLOGIES LTD	$24.23M	-296.60%	-168.10%	-222.25%	-541.90%	0.79	4.68	-8.80%	-1,124.00%	-1,124.05%
SPAI	SAFE PRO GROUP INC	$108.85M	-280.20%	-224.50%	-142.82%	-3,149.80%	0.15	7.60	46.60%	-968.90%	-968.14%
FLY	FIREFLY AEROSPACE INC	$3.22B	N/A	N/A	N/A	N/A	0.32	6.20	N/A	N/A	N/A
EVTL	VERTICAL AEROSPACE LTD	$655.60M	N/A	-515.20%	-119.01%	-85.00%	-2.29	0.55	N/A	N/A	N/A
LUNR	INTUITIVE MACHINES INC	$2.05B	N/A	-37.10%	-29.78%	-128.20%	-1.26	6.28	0.50%	-87.90%	-87.67%
ACHR	ARCHER AVIATION INC	$5.83B	-49.20%	-41.50%	-34.72%	-135.80%	0.15	18.20	N/A	N/A	N/A
VWAV	VISIONWAVE HOLDINGS INC	$148.92M	N/A	-37.40%	16.67%	61.50%	-1.08	0.00	N/A	N/A	N/A
HOVR	NEW HORIZON AIRCRAFT LTD	$73.33M	-61.90%	-29.60%	-18.65%	746.20%	0.58	7.97	N/A	N/A	N/A
EVEX	EVE HOLDING INC	$1.76B	-202.30%	-60.80%	-53.54%	-55.50%	1.39	5.21	N/A	N/A	N/A
PEW	GRABAGUN DIGITAL HOLDINGS INC	$108.66M	-15.20%	-3.00%	-3.36%	-4.10%	0.12	9.07	10.20%	-2.60%	-2.60%
SIF	SIFCO INDUSTRIES INC	$40.11M	-2.20%	-0.90%	2.24%	1.60%	1.16	1.49	9.80%	-1.10%	1.79%
ASTC	ASTROTECH CORP	$5.95M	-59.70%	-51.60%	-65.64%	-60.40%	0.22	9.79	49.80%	-1,069.90%	-1,069.74%
AIRI	AIR INDUSTRIES GROUP	$14.21M	-12.50%	-3.90%	-0.87%	-0.40%	2.08	1.22	17.60%	-4.00%	-0.35%
CVU	CPI AEROSTRUCTURES INC	$37.58M	-2.30%	-0.80%	1.37%	1.00%	1.96	1.61	15.30%	-0.80%	0.92%
GPUS	HYPERSCALE DATA INC	$101.21M	-233.20%	-19.90%	-33.75%	-20.50%	3.30	0.50	20.00%	-47.00%	-22.31%
DFSC	DEFSEC TECHNOLOGIES INC	$2.54M	-215.50%	-114.60%	-117.76%	-539.40%	1.20	2.13	33.30%	-231.50%	-226.84%

Defense Stocks FAQ

What are the best defense stocks to buy right now in Dec 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. Moog (NYSE:MOG.A)

Moog (NYSE:MOG.A) 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 Moog (NYSE:MOG.A) is: Value: C, Growth: A, Momentum: B, Sentiment: B, Safety: A, Financials: B, and AI: C.

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

MOG.A passed 18 out of 38 due diligence checks and has strong fundamentals. Moog has seen its stock return 7.9% over the past year, underperforming other defense stocks by -10 percentage points.

Moog has an average 1 year price target of $240.00, an upside of 1.66% from Moog's current stock price of $236.08.

Moog stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Moog, 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 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: A, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

V2x (NYSE:VVX) has a Due Diligence Score of 43, which is 13 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 lose -5.19% over the past year, underperforming other defense stocks by -23 percentage points.

V2x has an average 1 year price target of $60.00, an upside of 5.65% from V2x's current stock price of $56.79.

V2x stock has a consensus Hold recommendation according to Wall Street analysts. Of the 6 analysts covering V2x, 50% have issued a Strong Buy rating, 0% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 33.33% have issued a Strong Sell.

3. Astronics (NASDAQ:ATRO)

Astronics (NASDAQ:ATRO) 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 Astronics (NASDAQ:ATRO) is: Value: C, Growth: B, Momentum: B, Sentiment: B, Safety: B, Financials: C, and AI: C.

Astronics (NASDAQ:ATRO) has a Due Diligence Score of 19, which is -11 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 6 out of 33 due diligence checks and has weak fundamentals. Astronics has seen its stock return 207.43% over the past year, overperforming other defense stocks by 189 percentage points.

Astronics has an average 1 year price target of $61.50, an upside of 20.87% from Astronics's current stock price of $50.88.

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.

What are the defense stocks with highest dividends?

Out of 21 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 4.38%, which is 3 percentage points higher than the defense industry average of 1.07%. 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.

2. Park Aerospace (NYSE:PKE)

Park Aerospace (NYSE:PKE) has an annual dividend yield of 1.93%, which is 1 percentage points higher than the defense industry average of 1.07%. 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 105.6% indicates that its dividend yield might not be sustainable for the long-term.

3. Sturm Ruger & Co (NYSE:RGR)

Sturm Ruger & Co (NYSE:RGR) has an annual dividend yield of 1.92%, which is 1 percentage points higher than the defense industry average of 1.07%. Sturm Ruger & Co's dividend payout is not stable, having dropped more than 10% eighteen times in the last 10 years. Sturm Ruger & Co's dividend has not shown consistent growth over the last 10 years.

Sturm Ruger & Co's dividend payout ratio of 492.9% indicates that its dividend yield might not be sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 1.56% in the last day, and up 0.33% over the last week. Rocket Lab was the among the top gainers in the aerospace & defense industry, gaining 10.4% yesterday.

Rocket Lab shares are trading higher as investors position ahead of the company's first dedicated launch for Japan's JAXA.

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 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 -2.27% in the past year. It has underperformed other stocks in the defense industry by -20 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 57, which is 39 points higher than the defense industry average of 18. It passed 4 out of 7 valuation due diligence checks.

V2x's stock has dropped -5.19% in the past year. It has underperformed other stocks in the defense industry by -23 percentage points.

3. Innovative Solutions & Support (NASDAQ:ISSC)

Innovative Solutions & Support (NASDAQ:ISSC) 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.

Innovative Solutions & Support has a valuation score of 100, which is 82 points higher than the defense industry average of 18. It passed 7 out of 7 valuation due diligence checks.

Innovative Solutions & Support's stock has gained 26.49% in the past year. It has overperformed other stocks in the defense industry by 8 percentage points.

Are defense stocks a good buy now?

63.79% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 16.59% over the next year.

11.27% of defense stocks have a Zen Rating of A (Strong Buy), 22.54% of defense stocks are rated B (Buy), 36.62% are rated C (Hold), 23.94% are rated D (Sell), and 5.63% 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 34.61x.

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. Moog (NYSE:MOG.A)

2. V2x (NYSE:VVX)

3. Astronics (NASDAQ:ATRO)

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. Park Aerospace (NYSE:PKE)

3. Sturm Ruger & Co (NYSE:RGR)

1. Textron (NYSE:TXT)

2. V2x (NYSE:VVX)

3. Innovative Solutions & Support (NASDAQ:ISSC)

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. Moog (NYSE:MOG.A)

2. V2x (NYSE:VVX)

3. Astronics (NASDAQ:ATRO)

1. Smith & Wesson Brands (NASDAQ:SWBI)

2. Park Aerospace (NYSE:PKE)

3. Sturm Ruger & Co (NYSE:RGR)

1. Textron (NYSE:TXT)

2. V2x (NYSE:VVX)

3. Innovative Solutions & Support (NASDAQ:ISSC)

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.