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 59th 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	$1.23B	-1.40%	-0.50%	5.20%	4.60%	1.48	2.74	23.90%	-0.40%	3.21%
DCO	DUCOMMUN INC	$1.14B	5.20%	3.10%	5.88%	7.00%	0.63	3.34	25.60%	4.50%	7.11%
ISSC	INNOVATIVE SOLUTIONS & SUPPORT INC	$222.52M	22.60%	13.80%	18.08%	23.70%	0.68	4.87	50.20%	16.60%	22.61%
TXT	TEXTRON INC	$13.97B	11.70%	5.00%	8.38%	8.60%	1.33	1.65	18.80%	6.00%	7.58%
ESLT	ELBIT SYSTEMS LTD	$20.28B	11.20%	3.20%	9.74%	8.90%	2.44	1.21	24.00%	4.90%	7.77%
ERJ	EMBRAER SA	$8.87B	12.00%	3.10%	13.10%	16.10%	2.76	1.48	18.00%	5.50%	15.18%
CW	CURTISS WRIGHT CORP	$17.84B	17.30%	8.80%	14.82%	23.40%	0.94	1.89	37.10%	13.40%	18.44%
LMT	LOCKHEED MARTIN CORP	$113.97B	83.40%	9.90%	21.05%	18.30%	7.48	1.08	10.10%	7.70%	10.40%
AOUT	AMERICAN OUTDOOR BRANDS INC	$143.39M	-2.50%	-1.80%	-2.14%	-2.40%	0.38	4.82	45.20%	-2.10%	-2.19%
VVX	V2X INC	$1.41B	4.10%	1.30%	6.61%	11.70%	2.00	1.16	8.10%	1.00%	3.42%
WWD	WOODWARD INC	$13.81B	17.20%	8.70%	14.45%	18.10%	0.92	1.95	25.80%	11.40%	15.12%
DRS	LEONARDO DRS INC	$12.26B	9.40%	5.90%	9.84%	18.10%	0.59	2.02	22.80%	7.00%	9.03%
GD	GENERAL DYNAMICS CORP	$75.96B	17.80%	7.10%	13.49%	22.00%	1.55	1.34	15.40%	8.10%	10.37%
HWM	HOWMET AEROSPACE INC	$69.11B	27.70%	11.80%	18.41%	23.50%	1.25	2.30	32.20%	16.60%	22.50%
BWXT	BWX TECHNOLOGIES INC	$12.61B	27.30%	9.90%	15.16%	12.50%	1.78	2.02	24.10%	10.40%	14.01%
RTX	RTX CORP	$194.64B	7.60%	2.80%	7.04%	12.70%	1.65	1.01	19.50%	5.60%	9.67%
CAE	CAE INC	$8.59B	8.90%	3.80%	8.44%	9.30%	1.28	0.80	27.60%	8.60%	15.28%
CDRE	CADRE HOLDINGS INC	$1.40B	12.50%	6.00%	11.79%	16.70%	1.07	3.55	41.40%	6.90%	11.85%
HEI	HEICO CORP	$42.50B	16.10%	7.80%	11.62%	19.60%	0.91	3.43	39.30%	14.50%	20.88%
RGR	STURM RUGER & CO INC	$621.64M	9.80%	8.30%	11.90%	12.30%	0.18	4.63	21.50%	5.80%	7.22%
MOG.A	MOOG INC	$5.72B	11.40%	5.00%	9.88%	10.10%	1.35	2.45	27.10%	5.70%	9.07%
LOAR	LOAR HOLDINGS INC	$7.80B	3.80%	2.60%	6.02%	14.80%	0.34	5.13	50.30%	8.30%	20.20%
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$6.41B	1.40%	1.00%	1.71%	3.00%	0.45	2.84	24.90%	1.70%	2.50%
VTSI	VIRTRA INC	$69.37M	3.10%	2.10%	3.33%	4.10%	0.42	4.54	75.30%	5.60%	7.43%
LHX	L3HARRIS TECHNOLOGIES INC	$48.04B	8.40%	3.80%	7.12%	13.60%	1.16	1.02	26.00%	7.60%	11.33%
TATT	TAT TECHNOLOGIES LTD	$287.62M	11.90%	8.00%	11.82%	11.20%	0.47	2.87	22.40%	8.00%	9.53%
SARO	STANDARDAERO INC	$10.17B	N/A	N/A	N/A	N/A	1.67	2.00	N/A	N/A	N/A
BYRN	BYRNA TECHNOLOGIES INC	$675.94M	28.70%	22.30%	15.08%	28.30%	0.25	3.99	62.00%	15.10%	9.31%
KRMN	KARMAN HOLDINGS INC	$6.27B	N/A	N/A	N/A	N/A	1.51	3.34	N/A	N/A	N/A
NPK	NATIONAL PRESTO INDUSTRIES INC	$680.92M	12.00%	9.70%	13.72%	15.50%	0.24	4.60	19.90%	10.20%	12.55%
AIR	AAR CORP	$2.48B	-1.00%	-0.40%	3.49%	3.20%	1.42	2.82	18.80%	-0.50%	3.01%
EVTL	VERTICAL AEROSPACE LTD	$483.08M	N/A	N/A	N/A	N/A	-3.68	0.72	N/A	N/A	N/A
MRCY	MERCURY SYSTEMS INC	$3.17B	-4.50%	-2.70%	-2.52%	-3.80%	0.66	3.44	27.40%	-7.30%	-6.00%
CODA	CODA OCTOPUS GROUP INC	$86.81M	7.50%	7.00%	8.89%	19.90%	0.07	12.80	68.90%	18.70%	22.61%
AXON	AXON ENTERPRISE INC	$60.77B	14.90%	7.20%	6.97%	10.10%	1.38	2.83	60.40%	14.90%	14.86%
PL	PLANET LABS PBC	$1.63B	-23.40%	-16.50%	-20.56%	-51.90%	0.48	2.10	57.80%	-42.60%	-41.40%
TDG	TRANSDIGM GROUP INC	$80.86B	-33.20%	7.60%	19.48%	14.60%	-4.86	3.09	59.50%	20.50%	46.07%
PKE	PARK AEROSPACE CORP	$277.91M	5.40%	4.70%	8.42%	10.10%	0.14	9.75	28.40%	9.50%	15.33%
BA	BOEING CO	$151.04B	N/A	-7.90%	-16.84%	-10.60%	-48.07	1.23	-2.10%	-16.80%	-12.81%
HII	HUNTINGTON INGALLS INDUSTRIES INC	$9.13B	12.30%	4.70%	8.09%	9.40%	1.54	1.07	12.80%	4.80%	6.52%
VSEC	VSE CORP	$2.85B	1.50%	0.80%	3.80%	4.60%	0.78	3.90	11.70%	1.20%	5.15%
AZ	A2Z CUST2MATE SOLUTIONS CORP	$318.52M	-163.30%	-120.30%	-69.80%	-2,438.20%	0.33	4.28	30.70%	-316.90%	-310.55%
HXL	HEXCEL CORP	$4.40B	8.00%	4.40%	7.19%	6.10%	0.81	2.59	24.10%	6.60%	9.38%
SATL	SATELLOGIC INC	$335.23M	N/A	N/A	N/A	N/A	-1.74	0.58	N/A	N/A	N/A
NOC	NORTHROP GRUMMAN CORP	$74.37B	25.00%	7.70%	14.77%	16.80%	2.24	0.95	19.30%	9.20%	12.62%
MNTS	MOMENTUS INC	$7.14M	N/A	-258.40%	615.92%	-1,357.70%	-2.96	0.40	96.60%	-1,705.90%	-1,680.24%
EH	EHANG HOLDINGS LTD	$1.20B	-30.00%	-16.60%	-21.59%	-34.10%	0.74	2.68	61.40%	-58.20%	-57.19%
SKYH	SKY HARBOUR GROUP CORP	$738.33M	-42.80%	-6.40%	N/A	-4.40%	4.10	N/A	8.00%	-182.00%	-178.32%
RDW	REDWIRE CORP	$1.47B	N/A	-52.10%	-49.77%	-83.90%	-3.64	1.20	13.90%	-54.30%	-35.04%
AVAV	AEROVIRONMENT INC	$5.51B	3.90%	3.20%	3.61%	6.10%	0.22	4.22	39.60%	4.40%	4.47%
KWE	KWESST MICRO SYSTEMS INC	$3.58M	-206.40%	-112.10%	-102.19%	-2,274.20%	0.41	4.13	33.40%	-276.70%	-269.64%
POWW	OUTDOOR HOLDING CO	$163.87M	-18.70%	-16.30%	-17.61%	-50.90%	0.19	2.33	25.90%	-46.70%	-41.76%
PRZO	PARAZERO TECHNOLOGIES LTD	$17.94M	N/A	-156.10%	-250.28%	-1,783.60%	-19.41	3.87	6.30%	-1,185.90%	-1,185.88%
SWBI	SMITH & WESSON BRANDS INC	$462.47M	7.90%	5.10%	7.98%	7.50%	0.59	4.67	29.00%	6.00%	8.34%
DPRO	DRAGANFLY INC	$13.14M	-788.00%	-173.70%	-878.86%	945.40%	3.69	1.14	21.10%	-227.70%	-229.82%
HOVR	NEW HORIZON AIRCRAFT LTD	$58.69M	-114.20%	172.30%	112.30%	1,293.20%	0.48	7.11	N/A	N/A	N/A
LUNR	INTUITIVE MACHINES INC	$1.87B	N/A	-65.00%	-49.59%	-281.10%	-1.26	4.40	-1.90%	-91.30%	-91.80%
SPCE	VIRGIN GALACTIC HOLDINGS INC	$124.72M	-97.20%	-33.40%	-41.60%	-30.20%	2.32	3.81	-1,501.20%	-5,972.70%	-5,737.17%
SPR	SPIRIT AEROSYSTEMS HOLDINGS INC	$4.32B	N/A	-31.50%	-57.40%	-23.90%	-3.02	1.03	-22.80%	-34.80%	-28.86%
ACHR	ARCHER AVIATION INC	$5.48B	-80.10%	-61.30%	-44.77%	-360.00%	0.20	15.80	N/A	N/A	N/A
GPUS	HYPERSCALE DATA INC	$10.00M	-631.70%	-29.80%	-435.03%	-36.00%	33.56	0.28	13.90%	-67.50%	-44.40%
SIDU	SIDUS SPACE INC	$28.03M	-122.60%	-69.00%	-96.18%	-117.80%	0.72	1.16	-82.40%	-521.30%	-492.10%
KITT	NAUTICUS ROBOTICS INC	$35.29M	N/A	-218.70%	-211.48%	-132.40%	30.86	0.78	-488.50%	-4,616.60%	-4,301.82%
RKLB	ROCKET LAB CORP	$11.72B	-48.90%	-17.30%	-22.16%	-21.70%	1.91	2.08	27.30%	-44.30%	-43.12%
EVEX	EVE HOLDING INC	$1.51B	-137.90%	-57.40%	-70.81%	-56.90%	3.00	3.60	N/A	N/A	N/A
SHMD	SCHMID GROUP NV	$114.74M	N/A	-37.70%	-153.05%	-38.20%	-3.06	0.60	26.70%	-30.00%	-18.60%
SPAI	SAFE PRO GROUP INC	$45.67M	-363.40%	-239.30%	-355.31%	-2,848.20%	0.40	1.70	41.30%	-500.90%	-488.70%
AIRI	AIR INDUSTRIES GROUP	$12.84M	-11.00%	-3.30%	1.02%	0.50%	2.17	1.40	17.00%	-3.10%	0.43%
TGI	TRIUMPH GROUP INC	$2.01B	-43.80%	2.70%	10.89%	9.30%	-22.28	2.23	31.50%	3.20%	10.63%
VOYG	VOYAGER TECHNOLOGIES INC	N/A	N/A	N/A	N/A	N/A	4.05	2.39	N/A	N/A	N/A
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%
OPXS	OPTEX SYSTEMS HOLDINGS INC	$62.29M	25.10%	19.00%	26.29%	28.60%	0.27	5.06	28.80%	13.10%	16.21%
CVU	CPI AEROSTRUCTURES INC	$37.96M	7.20%	2.70%	12.01%	8.10%	1.62	1.57	19.80%	2.30%	6.08%
RAIN	RAIN ENHANCEMENT TECHNOLOGIES HOLDCO INC	$26.40M	N/A	-44.70%	96.26%	-60.30%	-1.20	0.09	N/A	N/A	N/A
SIF	SIFCO INDUSTRIES INC	$22.84M	-12.90%	-4.40%	-3.05%	-1.90%	1.44	1.25	7.00%	-5.70%	-2.05%

Defense Stocks FAQ

What are the best defense stocks to buy right now in Jun 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 75 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: B, 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 85.57% over the past year, overperforming other defense stocks by 57 percentage points.

Astronics has an average 1 year price target of $32.00, a downside of -8.18% from Astronics's current stock price of $34.85.

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 75 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: C, Sentiment: B, Safety: B, Financials: C, and AI: B.

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 33.61% over the past year, overperforming other defense stocks by 5 percentage points.

Ducommun has an average 1 year price target of $87.00, an upside of 13.68% from Ducommun's current stock price of $76.53.

Ducommun stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst 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 75 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: B, Sentiment: A, Safety: D, Financials: C, and AI: D.

Innovative Solutions & Support (NASDAQ:ISSC) has a Due Diligence Score of 46, which is 16 points higher than the defense industry average of 30.

ISSC passed 19 out of 38 due diligence checks and has strong fundamentals. Innovative Solutions & Support has seen its stock return 100.63% over the past year, overperforming other defense stocks by 72 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 5.21%, which is 4 percentage points higher than the defense industry average of 1.31%.

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 3.71%, which is 2 percentage points higher than the defense industry average of 1.31%. 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 78.5% indicates that its dividend yield is sustainable for the long-term.

3. Park Aerospace (NYSE:PKE)

Park Aerospace (NYSE:PKE) has an annual dividend yield of 2.71%, which is 1 percentage points higher than the defense industry average of 1.31%. 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 174.1% indicates that its dividend yield might not be sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.97% in the last day, and up 1.08% over the last week. Northrop Grumman was the among the top gainers in the aerospace & defense industry, gaining 3.94% yesterday.

Shares of defense stocks are trading lower following a report suggesting Iran wants to de-escalate Israel hostilities.

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 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 -2.47% in the past year. It has underperformed other stocks in the defense industry by -31 percentage points.

2. Textron (NYSE:TXT)

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 -10% in the past year. It has underperformed other stocks in the defense industry by -38 percentage points.

3. Sturm Ruger & Co (NYSE:RGR)

Sturm Ruger & Co (NYSE:RGR) 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.

Sturm Ruger & Co 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.

Sturm Ruger & Co's stock has dropped -11.9% in the past year. It has underperformed other stocks in the defense industry by -40 percentage points.

Are defense stocks a good buy now?

50% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 3.07% over the next year.

6.15% of defense stocks have a Zen Rating of A (Strong Buy), 23.08% of defense stocks are rated B (Buy), 44.62% are rated C (Hold), 23.08% are rated D (Sell), and 3.08% 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 38.55x.

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. Park Aerospace (NYSE:PKE)

1. V2x (NYSE:VVX)

2. Textron (NYSE:TXT)

3. Sturm Ruger & Co (NYSE:RGR)

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. Park Aerospace (NYSE:PKE)

1. V2x (NYSE:VVX)

2. Textron (NYSE:TXT)

3. Sturm Ruger & Co (NYSE:RGR)

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.