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.

Industry: Aerospace & Defense
D
Defense is Zen Rated D and is the 88th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Price
1d %
1w %
1m %
3m %
6m %
1y %
3y %
5y %
10y %
52-week High
52-week Low
% off 52-week High
% off 52-week Low
Beta
Volume
Vol 1d %
SWBI
SMITH & WESSON BRANDS INC
$14.641.46%-1.48%-9.18%-2.40%30.83%77.89%13.05%-37.25%-50.15%$17.56$7.7316.63%89.39%0.80403,000-13.70%
ATRO
ASTRONICS CORP
$69.85-1.62%3.85%-17.69%-4.62%-9.96%102.46%232.78%294.63%158.68%$99.89$27.2730.07%156.14%1.23340,000-40.25%
VVX
V2X INC
$83.57-0.49%10.53%9.92%32.04%22.34%72.88%65.81%88.52%171.16%$91.80$46.278.97%80.61%0.773,877,000377.46%
SIF
SIFCO INDUSTRIES INC
$25.994.25%15.51%25.98%75.73%323.98%413.64%978.42%141.09%188.78%$27.24$4.454.59%484.04%0.46117,000-4.88%
LMT
LOCKHEED MARTIN CORP
$582.602.46%14.51%18.50%13.47%0.16%38.53%27.54%58.29%127.92%$692.00$412.5515.81%41.22%0.221,546,000-52.65%
MOG.A
MOOG INC
$410.130.12%4.28%1.29%31.07%42.11%120.68%274.17%411.45%654.05%$430.52$179.424.74%128.59%0.99133,000-48.05%
GD
GENERAL DYNAMICS CORP
$386.751.30%4.93%12.32%23.48%6.38%23.07%77.70%101.52%169.10%$388.12$306.030.35%26.38%0.541,499,000-10.93%
HXL
HEXCEL CORP
$110.280.35%6.23%15.50%23.37%34.46%76.84%47.63%84.75%150.98%$111.01$58.200.66%89.48%1.08646,000-55.14%
RTX
RTX CORP
$212.791.74%9.96%14.98%22.11%9.61%37.09%119.35%147.57%103.33%$214.89$150.610.98%41.28%0.575,876,000-41.22%
CVU
CPI AEROSTRUCTURES INC
$4.713.06%6.32%-1.05%25.60%13.22%38.53%25.94%40.60%-28.53%$5.63$2.0216.34%133.17%0.7669,0003.92%
HWM
HOWMET AEROSPACE INC
$289.260.76%6.18%4.78%19.31%34.30%54.85%477.71%789.76%819.16%$293.00$169.451.28%70.71%1.131,689,000-31.87%
AOUT
AMERICAN OUTDOOR BRANDS INC
$12.951.17%-6.77%25.85%36.03%50.58%36.17%45.34%-54.63%N/A$14.97$6.2613.49%106.90%0.9681,000-5.81%
WWD
WOODWARD INC
$419.001.71%6.65%-3.19%14.81%26.52%64.16%248.06%247.08%626.30%$450.92$233.317.08%79.59%1.01425,000-37.50%
LHX
L3HARRIS TECHNOLOGIES INC
$300.210.18%6.45%4.50%-5.45%-15.24%9.88%49.60%32.84%251.12%$379.23$267.2520.84%12.33%0.411,018,000-49.83%
RGR
STURM RUGER & CO INC
$38.230.45%1.00%-0.83%-9.98%0.90%8.92%-28.26%-49.80%-44.32%$48.18$28.3320.65%34.95%0.5172,000-29.41%
TXT
TEXTRON INC
$95.532.51%4.43%10.39%8.61%0.94%18.04%40.53%40.20%144.01%$101.57$75.805.95%26.03%1.01841,000-46.64%
CW
CURTISS WRIGHT CORP
$750.190.02%5.98%-1.67%4.55%15.47%56.70%288.94%540.59%771.71%$808.16$464.917.17%61.36%0.92110,000-45.00%
DRS
LEONARDO DRS INC
$48.10-0.12%8.97%7.63%20.31%18.39%1.37%184.62%N/AN/A$50.59$32.434.92%48.32%0.94688,000-26.02%
ESLT
ELBIT SYSTEMS LTD
$820.211.44%10.61%9.23%-0.21%15.65%82.15%288.25%546.14%742.97%$1.02k$432.8519.28%89.49%0.4372,000-18.64%
PKE
PARK AEROSPACE CORP
$34.24-0.17%5.55%7.88%3.29%41.72%92.36%132.14%131.66%105.65%$39.86$17.2514.10%98.49%0.74251,000-22.05%
BWXT
BWX TECHNOLOGIES INC
$174.52-1.22%1.95%-15.14%-21.79%-15.30%21.33%149.85%202.99%384.37%$241.82$143.0727.83%21.98%0.88503,000-29.85%
AIR
AAR CORP
$129.05-0.32%-4.65%-2.93%16.75%23.78%66.52%121.47%254.73%433.04%$146.75$71.4312.06%80.67%1.11374,000-45.56%
HEI
HEICO CORP
$349.612.66%2.03%4.27%32.41%4.00%9.12%96.70%157.58%942.18%$369.48$256.115.38%36.51%0.87325,000-41.76%
DCO
DUCOMMUN INC
$177.441.10%5.32%7.34%27.28%60.64%100.07%264.88%229.08%807.16%$196.63$84.769.76%109.34%0.92164,000-53.41%
MRCY
MERCURY SYSTEMS INC
$103.27-2.89%7.48%-1.65%32.41%4.43%96.85%184.33%55.79%304.19%$128.45$50.1319.60%106.00%0.96409,000-48.68%
EMBJ
EMBRAER SA
$64.93-0.82%1.31%5.29%3.69%-16.03%36.38%318.36%337.83%209.93%$80.75$46.5419.59%39.51%1.28982,000-28.22%
NOC
NORTHROP GRUMMAN CORP
$542.241.64%3.96%7.80%-5.72%-17.96%-4.62%19.91%51.35%147.45%$774.00$479.0229.94%13.20%0.21655,000-39.58%
CODA
CODA OCTOPUS GROUP INC
$10.04-1.08%0.20%6.81%-18.11%-4.29%31.41%11.87%11.43%N/A$17.28$7.0141.90%43.22%0.4835,300-46.92%
TDG
TRANSDIGM GROUP INC
$1,236.711.88%1.83%-6.50%7.71%-13.88%-22.67%40.21%90.08%351.58%$1.62k$1.12k23.84%10.07%0.98265,0006.85%
AVEX
AEVEX CORP
$14.29-5.55%-1.45%-6.84%-51.89%N/AN/AN/AN/AN/A$42.34$13.0766.25%9.33%2.021,018,000-50.07%
GE
GE AEROSPACE
$353.731.36%1.40%-3.32%24.29%19.88%31.98%220.84%242.23%39.75%$382.97$261.717.64%35.16%1.092,956,000-22.64%
LOAR
LOAR HOLDINGS INC
$70.891.11%1.29%-3.94%23.67%-1.39%-3.01%N/AN/AN/A$83.43$53.1615.03%33.35%1.42426,00016.39%
CAE
CAE INC
$25.181.41%1.98%0.92%-0.55%-22.95%-11.65%15.08%-17.71%96.72%$34.24$22.7626.46%10.63%1.17381,000-43.05%
ISSC
INNOVATIVE SOLUTIONS & SUPPORT INC
$19.14-2.55%3.68%15.02%-3.82%-6.63%24.61%141.36%167.69%583.57%$30.94$8.1338.14%135.42%0.83286,00010.00%
OPXS
OPTEX SYSTEMS HOLDINGS INC
$11.10-4.72%-13.01%-11.16%4.62%-26.15%-11.83%231.34%N/AN/A$17.76$9.7437.50%13.96%0.75113,000576.65%
SARO
STANDARDAERO INC
$28.701.56%7.37%5.83%16.95%-12.29%1.23%N/AN/AN/A$34.48$23.8416.76%20.39%1.162,164,000-51.39%
VSEC
VSE CORP
$195.42-0.98%-2.10%-10.23%9.28%-6.23%45.75%272.94%272.87%450.01%$240.56$135.4418.76%44.29%1.32359,000-5.77%
ARXS
ARXIS INC
$42.40-0.59%1.37%-1.60%21.14%N/AN/AN/AN/AN/A$48.68$33.1512.90%27.90%1.37312,000-8.50%
HII
HUNTINGTON INGALLS INDUSTRIES INC
$287.590.17%6.86%2.85%-19.96%-30.46%9.21%24.38%40.17%70.67%$460.00$256.4537.48%12.14%0.57325,000-53.51%
CDRE
CADRE HOLDINGS INC
$30.861.28%6.19%7.34%4.75%-27.29%-8.43%34.76%N/AN/A$48.76$25.7336.71%19.94%0.88387,00018.35%
HONA
HONEYWELL AEROSPACE INC
$204.074.19%-3.57%-7.32%N/AN/AN/AN/AN/AN/A$266.62$192.0323.46%6.27%0.892,706,000-17.93%
MDA
MDA SPACE LTD
$29.57-4.24%-2.22%-21.36%-8.31%N/AN/AN/AN/AN/A$49.37$23.2340.11%27.29%2.501,439,00032.63%
POWW
OUTDOOR HOLDING CO
$2.06-1.90%-8.85%-11.97%4.04%21.89%60.94%-0.96%-71.55%N/A$2.60$1.1020.77%87.27%1.26446,000-9.53%
AXON
AXON ENTERPRISE INC
$502.342.12%-1.56%9.99%26.50%-16.98%-29.17%181.74%175.95%1,662.60%$885.92$339.2343.30%48.08%1.19707,00024.25%
BA
BOEING CO
$209.520.14%-2.11%-4.87%-9.86%-15.66%-9.40%-2.94%-7.23%57.60%$254.35$176.7717.63%18.53%1.143,167,000-34.62%
TATT
TAT TECHNOLOGIES LTD
$41.83-0.81%4.05%-1.67%16.32%-20.06%29.28%461.10%553.59%374.26%$64.50$30.3635.15%37.80%0.65119,000-65.00%
AADX
APPLIED AEROSPACE & DEFENSE INC
$18.01-5.71%5.94%-1.32%N/AN/AN/AN/AN/AN/A$24.23$16.5725.67%8.69%2.14939,000-32.35%
KTOS
KRATOS DEFENSE & SECURITY SOLUTIONS INC
$47.35-4.23%2.87%-1.25%-22.71%-57.46%-19.28%224.98%73.44%940.66%$134.00$45.5864.66%3.88%1.242,782,000-41.91%
NPK
NATIONAL PRESTO INDUSTRIES INC
$124.401.98%2.43%-1.26%-13.10%2.23%18.75%60.04%30.93%35.81%$149.86$91.2816.99%36.28%0.6143,000-32.39%
KRMN
KARMAN HOLDINGS INC
$47.44-4.59%2.75%5.80%-32.44%-56.36%-3.99%N/AN/AN/A$118.38$43.6859.93%8.61%1.612,794,00010.13%
RKLB
ROCKET LAB CORP
$63.91-8.69%-5.49%-25.17%-19.79%-20.59%32.79%764.82%505.21%N/A$151.00$37.5757.68%70.11%2.1118,547,00031.61%
AZ
A2Z CUST2MATE SOLUTIONS CORP
$5.595.27%1.45%3.52%-26.35%-25.27%-47.41%14.67%N/AN/A$10.71$4.9747.82%12.47%1.20251,00081.88%
AVAV
AEROVIRONMENT INC
$149.51-5.81%5.14%5.16%-23.83%-50.60%-44.87%55.08%57.05%441.11%$417.86$135.2064.22%10.58%1.111,107,000-32.83%
SPAI
SAFE PRO GROUP INC
$3.64-1.09%-6.43%-10.78%-16.51%-32.09%-3.19%N/AN/AN/A$9.16$2.8660.26%27.27%1.5194,000-3.09%
DPC
DPC HOLDINGS LTD
$49.912.04%7.87%6.46%N/AN/AN/AN/AN/AN/A$53.00$43.005.83%16.07%1.811,336,00061.94%
SIDU
SIDUS SPACE INC
$1.85-6.09%-1.07%-31.73%-45.91%-47.29%-9.31%-90.25%N/AN/A$6.79$0.6372.75%194.59%1.832,710,000-29.34%
BETA
BETA TECHNOLOGIES INC
$18.21-0.87%2.53%16.14%19.10%-25.18%N/AN/AN/AN/A$39.50$13.4353.90%35.59%2.83943,000-18.57%
PL
PLANET LABS PBC
$20.47-8.45%-8.90%-22.17%-42.24%-20.87%199.27%512.87%107.19%N/A$51.75$5.8760.44%248.72%1.8513,184,000131.95%
VWAV
VISIONWAVE HOLDINGS INC
$2.96-9.76%-15.67%-33.48%-49.49%-71.97%28.70%-72.15%N/AN/A$15.80$2.9181.27%1.72%0.20499,000-55.88%
YSS
YORK SPACE SYSTEMS INC
$17.06-3.18%-4.85%-30.48%-45.07%-49.24%N/AN/AN/AN/A$44.54$16.5361.70%3.21%2.50610,000-28.24%
SPCE
VIRGIN GALACTIC HOLDINGS INC
$2.49-3.49%-2.73%-8.79%-3.49%-17.28%-42.36%-96.70%-99.59%N/A$8.90$2.1372.02%16.90%2.104,591,000-11.95%
SATL
SATELLOGIC INC
$3.59-5.77%-6.02%-28.77%-41.82%-21.62%1.41%83.16%-63.59%N/A$12.00$1.2670.08%186.06%1.263,113,00014.41%
MNTS
MOMENTUS INC
$4.71-3.68%-5.04%-39.62%-16.78%-37.86%-77.83%-99.90%-100.00%N/A$43.55$3.1289.19%50.96%2.18700,00035.40%
SPCX
SPACE EXPLORATION TECHNOLOGIES CORP
$115.07-2.68%-7.19%-25.54%N/AN/AN/AN/AN/AN/A$225.64$110.8549.00%3.81%3.9053,998,000-27.32%
RDW
REDWIRE CORP
$8.69-6.36%2.84%-23.64%-10.23%-20.71%-45.76%160.18%-13.10%N/A$26.62$4.8767.36%78.44%2.1211,938,000-20.89%
LUNR
INTUITIVE MACHINES INC
$12.92-5.76%-4.44%-32.46%-49.39%-29.86%1.02%51.11%N/AN/A$46.75$7.7872.36%66.07%0.926,760,00020.95%
DFSC
DEFSEC TECHNOLOGIES INC
$1.51-2.58%-19.25%-49.83%-33.48%-21.35%-66.44%-99.64%N/AN/A$6.00$1.5174.83%0.00%1.3223,400-48.00%
HOVR
NEW HORIZON AIRCRAFT LTD
$1.78-3.78%13.38%-5.32%-6.81%-17.59%9.20%-82.93%N/AN/A$4.18$1.1657.42%53.45%1.29822,000-31.61%
HAWK
HAWKEYE 360 INC
$19.38-5.46%3.69%-7.14%N/AN/AN/AN/AN/AN/A$35.65$17.0845.64%13.47%1.49654,000-40.38%
PEW
GRABAGUN DIGITAL HOLDINGS INC
$2.33-2.10%-5.67%0.87%-21.55%-25.08%-68.13%N/AN/AN/A$7.25$2.2567.86%3.79%0.36866,000199.65%
DPRO
DRAGANFLY INC
$4.22-3.65%0.72%-17.25%-28.11%-47.58%-31.72%-84.65%N/AN/A$14.40$3.8570.69%9.61%1.25488,000-18.26%
FJET
STARFIGHTERS SPACE INC
$3.43-7.55%-10.91%-17.94%-41.96%-64.27%N/AN/AN/AN/A$31.50$3.3989.11%1.18%3.36614,000-30.31%
EH
EHANG HOLDINGS LTD
$4.90-3.73%-4.30%-26.09%-52.01%-63.54%-75.38%-71.33%-80.99%N/A$20.33$4.8975.90%0.31%1.72594,00010.61%
KITT
NAUTICUS ROBOTICS INC
$0.770.39%-2.65%-30.63%-74.92%-92.42%-98.94%-99.99%-100.00%N/A$82.80$0.7699.07%1.85%0.9762,000-42.59%
ASTC
ASTROTECH CORP
$7.20-4.76%-6.86%-29.38%111.14%103.97%28.11%-43.40%-77.57%-97.32%$68.85$1.9289.54%275.98%0.4645,400-72.65%
FLY
FIREFLY AEROSPACE INC
$19.69-4.88%2.18%-21.18%-43.95%-21.87%N/AN/AN/AN/A$73.80$16.0073.32%23.06%3.152,579,000-9.76%
ACHR
ARCHER AVIATION INC
$4.77-6.65%7.43%-5.54%-16.32%-40.60%-56.60%4.15%-51.72%N/A$14.62$4.3167.37%10.67%2.1032,851,0008.22%
BYRN
BYRNA TECHNOLOGIES INC
$3.545.04%5.99%-37.79%-42.44%-76.48%-84.96%-12.81%-84.63%47.50%$30.62$3.1788.44%11.85%1.181,665,000220.19%
AIRO
AIRO GROUP HOLDINGS INC
$6.80-4.76%4.13%-3.27%-14.25%-40.61%-71.03%N/AN/AN/A$25.90$5.7173.75%19.09%2.79349,00033.72%
SKYH
SKY HARBOUR GROUP CORP
$10.18-0.20%-2.30%7.27%-3.42%9.82%-4.68%133.49%1.19%N/A$11.17$8.228.87%23.84%0.3471,0007.58%
EVTL
VERTICAL AEROSPACE LTD
$1.38-8.61%-6.76%-25.81%-41.77%-73.96%-78.03%-92.16%-98.60%N/A$7.33$1.3781.17%0.73%1.402,268,00026.28%
EVEX
EVE HOLDING INC
$2.29-5.37%5.05%-12.93%-17.33%-45.22%-68.19%-75.84%-77.17%N/A$7.00$2.1067.29%9.05%0.91748,000-35.85%
MRLN
MERLIN INC
$3.47-1.56%-3.34%-38.37%-71.11%-67.30%-66.44%N/AN/AN/A$17.00$3.2779.59%6.12%0.31947,000-64.14%
VOYG
VOYAGER TECHNOLOGIES INC
$25.24-4.32%-2.55%-16.86%-11.99%-24.11%-40.93%N/AN/AN/A$52.40$17.4151.83%44.97%2.99780,000-15.68%
VTSI
VIRTRA INC
$3.181.28%2.42%-0.78%-30.68%-36.75%-48.79%-57.84%-53.85%N/A$7.47$2.9457.50%7.99%0.7145,500-13.66%
PRZO
PARAZERO TECHNOLOGIES LTD
$0.49-3.16%-5.39%-4.10%-31.71%-59.08%-75.08%-86.36%N/AN/A$1.98$0.4575.14%9.11%0.82441,000126.15%
GPUS
HYPERSCALE DATA INC
$0.130.00%0.00%-33.16%-21.88%-44.20%-85.71%-100.00%-100.00%-100.00%$0.83$0.1184.92%13.64%1.4220,031,00023.63%
DUKR
DUKE ROBOTICS CORP
$5.45-1.27%0.18%-12.80%N/AN/AN/AN/AN/AN/A$7.93$4.7531.27%14.74%1.8315,200-44.32%
FACT
FACT II ACQUISITION CORP
$10.650.00%0.09%-0.04%0.90%1.82%3.45%N/AN/AN/A$13.34$5.5520.15%92.03%0.2791,5003,288.89%
AIRI
AIR INDUSTRIES GROUP
$2.721.87%2.84%-9.93%-14.47%-18.56%-21.39%-20.47%-77.89%-94.21%$3.95$2.5531.14%6.67%0.504,300-83.65%

Defense Stocks FAQ

What are the best defense stocks to buy right now in Jul 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 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: B, Safety: C, Financials: A, and AI: B.

Smith & Wesson Brands (NASDAQ:SWBI) has a Due Diligence Score of 51, which is 19 points higher than the defense industry average of 32.

SWBI passed 18 out of 38 due diligence checks and has strong fundamentals. Smith & Wesson Brands has seen its stock return 77.89% over the past year, overperforming other defense stocks by 64 percentage points.

Smith & Wesson Brands has an average 1 year price target of $16.50, an upside of 12.7% from Smith & Wesson Brands's current stock price of $14.64.

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. Astronics (NASDAQ:ATRO)


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 9 points higher than the defense industry average of 32.

ATRO passed 14 out of 33 due diligence checks and has strong fundamentals. Astronics has seen its stock return 102.46% over the past year, overperforming other defense stocks by 89 percentage points.

Astronics has an average 1 year price target of $103.50, an upside of 48.17% from Astronics's current stock price of $69.85.

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.

3. V2x (NYSE:VVX)


V2x (NYSE:VVX) 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 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 45, which is 13 points higher than the defense industry average of 32.

VVX passed 15 out of 33 due diligence checks and has strong fundamentals. V2x has seen its stock return 72.88% over the past year, overperforming other defense stocks by 59 percentage points.

V2x has an average 1 year price target of $79.44, a downside of -4.94% from V2x's current stock price of $83.57.

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.

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 123.8% 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 2.34%, which is 1 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 50.1% 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 1.73%, 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 29.8% indicates that its dividend yield is sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.71% in the last day, and up 4.08% over the last week.

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

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 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 18.04% in the past year. It has overperformed other stocks in the defense industry by 5 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 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 9.21% in the past year. It has underperformed other stocks in the defense industry by -4 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 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 72.88% in the past year. It has overperformed other stocks in the defense industry by 59 percentage points.

Are defense stocks a good buy now?

64.38% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 19.74% over the next year.

8.33% of defense stocks have a Zen Rating of A (Strong Buy), 19.05% of defense stocks are rated B (Buy), 44.05% are rated C (Hold), 16.67% are rated D (Sell), and 11.9% 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 40.07x.
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