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 68th 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	$6.05B	11.40%	5.00%	9.96%	10.00%	1.26	2.43	27.00%	5.70%	9.09%
OPXS	OPTEX SYSTEMS HOLDINGS INC	$81.03M	24.70%	19.20%	25.99%	30.40%	0.26	5.14	28.00%	13.00%	16.11%
DCO	DUCOMMUN INC	$1.36B	5.20%	3.10%	5.88%	7.00%	0.63	3.34	25.60%	4.50%	7.11%
VVX	V2X INC	$1.91B	6.80%	2.20%	7.84%	14.30%	1.95	1.20	8.60%	1.60%	4.09%
WWD	WOODWARD INC	$14.71B	16.90%	8.70%	13.84%	18.00%	0.91	2.04	25.90%	11.30%	14.95%
TXT	TEXTRON INC	$14.31B	11.30%	4.80%	8.16%	8.30%	1.30	1.68	19.50%	5.80%	7.37%
CW	CURTISS WRIGHT CORP	$18.54B	17.70%	9.00%	14.93%	24.20%	0.92	1.95	37.30%	13.70%	18.83%
TATT	TAT TECHNOLOGIES LTD	$474.28M	10.90%	7.80%	9.00%	11.40%	0.29	4.67	23.20%	8.20%	9.70%
ESLT	ELBIT SYSTEMS LTD	$20.93B	11.80%	3.60%	9.40%	9.30%	2.07	1.29	24.00%	5.30%	8.01%
HII	HUNTINGTON INGALLS INDUSTRIES INC	$10.50B	11.30%	4.40%	7.74%	8.80%	1.48	1.08	12.40%	4.50%	6.26%
AIR	AAR CORP	$2.77B	1.00%	0.40%	4.99%	4.50%	1.35	2.72	19.00%	0.40%	4.11%
CODA	CODA OCTOPUS GROUP INC	$85.25M	6.40%	5.90%	7.79%	18.00%	0.08	10.91	67.10%	15.00%	19.28%
GD	GENERAL DYNAMICS CORP	$84.96B	18.00%	7.20%	13.63%	22.50%	1.41	1.36	15.40%	8.10%	10.44%
HWM	HOWMET AEROSPACE INC	$70.95B	29.60%	13.00%	19.29%	24.50%	1.19	2.31	32.70%	18.10%	23.60%
DRS	LEONARDO DRS INC	$11.11B	9.80%	6.20%	10.16%	18.70%	0.57	2.11	23.20%	7.30%	9.27%
VTSI	VIRTRA INC	$58.90M	0.80%	0.60%	1.34%	1.70%	0.42	4.40	70.00%	1.50%	2.92%
LOAR	LOAR HOLDINGS INC	$6.52B	4.30%	3.00%	6.39%	15.50%	0.33	6.16	51.50%	9.80%	20.53%
ISSC	INNOVATIVE SOLUTIONS & SUPPORT INC	$238.16M	22.90%	13.50%	20.09%	22.50%	0.62	3.53	45.20%	15.10%	20.88%
AOUT	AMERICAN OUTDOOR BRANDS INC	$124.65M	0.00%	0.00%	-0.01%	0.00%	0.39	4.66	44.60%	0.00%	-0.01%
LHX	L3HARRIS TECHNOLOGIES INC	$50.71B	8.80%	4.10%	7.44%	14.10%	1.14	1.04	25.70%	7.90%	11.80%
ATRO	ASTRONICS CORP	$1.16B	-1.40%	-0.50%	5.20%	4.60%	1.48	2.74	23.90%	-0.40%	3.21%
CDRE	CADRE HOLDINGS INC	$1.19B	12.10%	5.60%	9.81%	15.10%	1.39	3.59	41.50%	6.70%	11.79%
BWXT	BWX TECHNOLOGIES INC	$15.97B	26.60%	9.40%	12.77%	12.10%	2.12	1.69	24.30%	10.30%	13.85%
MRCY	MERCURY SYSTEMS INC	$4.00B	-2.60%	-1.60%	-0.80%	-1.20%	0.65	3.52	27.90%	-4.20%	-1.86%
KTOS	KRATOS DEFENSE & SECURITY SOLUTIONS INC	$10.61B	1.40%	1.00%	1.71%	3.00%	0.45	2.84	24.90%	1.70%	2.50%
NOC	NORTHROP GRUMMAN CORP	$83.58B	26.10%	8.10%	14.99%	17.30%	2.20	1.04	19.30%	9.70%	13.32%
SARO	STANDARDAERO INC	$9.04B	6.30%	2.10%	8.21%	9.00%	1.58	2.15	15.00%	2.40%	7.59%
HEI	HEICO CORP	$43.29B	16.10%	7.80%	11.62%	19.60%	0.91	3.43	39.30%	14.50%	20.88%
PKE	PARK AEROSPACE CORP	$349.86M	6.50%	5.70%	9.87%	12.50%	0.15	8.62	28.80%	11.00%	17.20%
AVAV	AEROVIRONMENT INC	$11.41B	5.10%	4.20%	4.92%	8.10%	0.26	3.52	38.80%	5.30%	5.69%
RTX	RTX CORP	$207.58B	10.00%	3.70%	8.42%	15.00%	1.65	1.01	20.00%	7.40%	11.36%
TDG	TRANSDIGM GROUP INC	$79.61B	-30.20%	7.60%	19.41%	14.50%	-5.54	3.13	59.40%	20.40%	46.36%
PL	PLANET LABS PBC	$2.07B	-23.40%	-16.50%	-20.56%	-51.90%	0.48	2.10	57.80%	-42.60%	-41.40%
BYRN	BYRNA TECHNOLOGIES INC	$450.22M	27.40%	21.20%	16.29%	25.20%	0.29	3.63	61.90%	14.30%	9.77%
POWW	OUTDOOR HOLDING CO	$149.90M	-44.00%	-37.40%	-50.38%	-180.50%	0.21	3.28	143.50%	-414.60%	-410.15%
CAE	CAE INC	$8.98B	8.80%	3.80%	8.68%	9.50%	1.20	0.87	28.10%	8.70%	15.72%
VSEC	VSE CORP	$3.39B	2.00%	1.20%	4.45%	5.10%	0.64	3.73	12.60%	1.70%	5.66%
ERJ	EMBRAER SA	$10.98B	12.00%	3.10%	13.10%	16.10%	2.76	1.48	18.00%	5.50%	15.18%
SATL	SATELLOGIC INC	$392.71M	N/A	-162.50%	-335.82%	-133.80%	-2.08	0.98	64.70%	-881.40%	-865.09%
NPK	NATIONAL PRESTO INDUSTRIES INC	$741.74M	12.00%	9.70%	13.72%	15.50%	0.24	4.60	19.90%	10.20%	12.55%
RGR	STURM RUGER & CO INC	$561.95M	1.80%	1.50%	2.99%	2.90%	0.21	3.96	16.90%	1.10%	1.63%
BA	BOEING CO	$176.33B	N/A	-7.20%	-15.28%	-9.20%	-48.08	1.23	-0.30%	-14.50%	-10.50%
AXON	AXON ENTERPRISE INC	$58.86B	13.40%	6.30%	5.49%	6.80%	1.28	2.95	60.50%	13.60%	11.30%
KRMN	KARMAN HOLDINGS INC	$6.74B	N/A	N/A	N/A	N/A	1.64	2.75	N/A	N/A	N/A
AIRO	AIRO GROUP HOLDINGS INC	$629.04M	N/A	N/A	N/A	N/A	0.10	1.19	N/A	N/A	N/A
EH	EHANG HOLDINGS LTD	$1.27B	-30.00%	-16.60%	-21.59%	-34.10%	0.74	2.68	61.40%	-58.20%	-57.19%
FLY	FIREFLY AEROSPACE INC	N/A	N/A	N/A	N/A	N/A	-0.47	1.39	N/A	N/A	N/A
SWBI	SMITH & WESSON BRANDS INC	$361.13M	3.60%	2.30%	4.84%	4.20%	0.50	4.16	26.80%	2.80%	5.03%
LMT	LOCKHEED MARTIN CORP	$102.10B	65.80%	7.40%	17.24%	14.50%	10.04	0.99	8.20%	5.90%	8.28%
MNTS	MOMENTUS INC	$8.64M	N/A	-258.40%	615.92%	-1,357.70%	-2.96	0.40	96.60%	-1,705.90%	-1,680.24%
SPCE	VIRGIN GALACTIC HOLDINGS INC	$173.92M	-98.90%	-32.00%	-39.09%	-28.50%	2.41	3.38	-4,327.40%	-17,828.00%	-17,066.67%
HXL	HEXCEL CORP	$4.97B	5.70%	3.10%	5.38%	4.70%	0.83	2.69	23.40%	4.70%	7.25%
KITT	NAUTICUS ROBOTICS INC	$37.32M	N/A	-236.50%	-325.99%	-172.80%	-8.38	0.44	-208.40%	-2,648.40%	-2,492.96%
SPR	SPIRIT AEROSYSTEMS HOLDINGS INC	$4.80B	N/A	-35.50%	-143.13%	-27.70%	-2.64	0.77	-22.20%	-37.50%	-30.98%
DPRO	DRAGANFLY INC	$23.94M	-156.80%	-96.90%	-57.03%	-4,117.60%	0.24	5.29	20.50%	-183.10%	-185.02%
SKYH	SKY HARBOUR GROUP CORP	$812.38M	-23.20%	-3.90%	N/A	-2.60%	3.42	N/A	4.90%	-100.30%	-97.38%
PRZO	PARAZERO TECHNOLOGIES LTD	$20.38M	N/A	-156.10%	-250.28%	-1,783.60%	-19.41	3.87	6.30%	-1,185.90%	-1,185.88%
DFSC	DEFSEC TECHNOLOGIES INC	$2.60M	-215.50%	-114.60%	-117.76%	-539.40%	1.20	2.13	33.30%	-231.50%	-226.84%
AIRI	AIR INDUSTRIES GROUP	$10.92M	-11.00%	-3.30%	1.02%	0.50%	2.17	1.40	17.00%	-3.10%	0.43%
HOVR	NEW HORIZON AIRCRAFT LTD	$49.59M	-114.20%	172.30%	112.30%	1,293.20%	0.48	7.11	N/A	N/A	N/A
LUNR	INTUITIVE MACHINES INC	$1.61B	N/A	-62.20%	-65.89%	-342.60%	-0.49	3.70	-0.20%	-107.00%	-107.41%
VOYG	VOYAGER TECHNOLOGIES INC	$1.63B	N/A	N/A	N/A	N/A	0.19	5.60	N/A	N/A	N/A
SIDU	SIDUS SPACE INC	$20.94M	-122.60%	-69.00%	-96.18%	-117.80%	0.72	1.16	-82.40%	-521.30%	-492.10%
EVTL	VERTICAL AEROSPACE LTD	$444.16M	N/A	-660.80%	-39.00%	-56.50%	-1.49	0.32	N/A	N/A	N/A
AZ	A2Z CUST2MATE SOLUTIONS CORP	$345.52M	-158.00%	-114.30%	-99.73%	-1,237.90%	0.45	3.29	34.40%	-474.60%	-467.93%
RKLB	ROCKET LAB CORP	$19.75B	-48.90%	-17.30%	-22.16%	-21.70%	1.91	2.08	27.30%	-44.30%	-43.12%
GPUS	HYPERSCALE DATA INC	$1.49M	-631.70%	-29.80%	-435.03%	-36.00%	33.56	0.28	13.90%	-67.50%	-44.40%
RDW	REDWIRE CORP	$1.31B	-180.10%	-41.50%	-14.03%	-112.80%	0.49	1.46	2.50%	-95.50%	-71.96%
ACHR	ARCHER AVIATION INC	$6.44B	-62.70%	-51.00%	-32.95%	-352.40%	0.15	22.30	N/A	N/A	N/A
EVEX	EVE HOLDING INC	$1.33B	-201.50%	-64.80%	-107.33%	-61.10%	18.43	2.77	N/A	N/A	N/A
SHMD	SCHMID GROUP NV	$110.88M	N/A	-37.70%	-153.05%	-38.20%	-3.06	0.60	26.70%	-30.00%	-18.60%
SPAI	SAFE PRO GROUP INC	$58.11M	-363.40%	-239.30%	-355.31%	-2,848.20%	0.40	1.70	41.30%	-500.90%	-488.70%
RAIN	RAIN ENHANCEMENT TECHNOLOGIES HOLDCO INC	$24.66M	N/A	-44.70%	96.26%	-60.30%	-1.20	0.09	N/A	N/A	N/A
SIF	SIFCO INDUSTRIES INC	$34.85M	-12.90%	-4.40%	-3.05%	-1.90%	1.44	1.25	7.00%	-5.70%	-2.05%
ASTC	ASTROTECH CORP	$8.64M	-46.40%	-42.50%	-55.51%	-56.30%	0.11	9.86	47.50%	-1,537.00%	-1,536.77%
CVU	CPI AEROSTRUCTURES INC	$40.30M	7.20%	2.70%	12.01%	8.10%	1.62	1.57	19.80%	2.30%	6.08%
PEW	GRABAGUN DIGITAL HOLDINGS INC	$206.62M	-23.80%	0.80%	-1,773.62%	0.80%	-1.00	N/A	10.10%	0.90%	0.93%

Defense Stocks FAQ

What are the best defense stocks to buy right now in Aug 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: B, Growth: B, Momentum: C, Sentiment: B, 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 return 1.42% over the past year, underperforming other defense stocks by -28 percentage points.

Moog has an average 1 year price target of $210.00, an upside of 10.05% from Moog's current stock price of $190.83.

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.

2. Optex Systems Holdings (NASDAQ:OPXS)

Optex Systems Holdings (NASDAQ:OPXS) 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 Optex Systems Holdings (NASDAQ:OPXS) is: Value: B, Growth: C, Momentum: B, Sentiment: C, Safety: C, Financials: B, and AI: C.

Optex Systems Holdings (NASDAQ:OPXS) has a Due Diligence Score of 51, which is 21 points higher than the defense industry average of 30.

OPXS passed 16 out of 33 due diligence checks and has strong fundamentals. Optex Systems Holdings has seen its stock return 46.13% over the past year, overperforming other defense stocks by 16 percentage points.

3. Ducommun (NYSE:DCO)

Ducommun (NYSE:DCO) 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 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 46.06% over the past year, overperforming other defense stocks by 16 percentage points.

Ducommun has an average 1 year price target of $119.75, an upside of 30.93% from Ducommun's current stock price of $91.46.

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.

What are the defense stocks with highest dividends?

Out of 20 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 5.31%, which is 4 percentage points higher than the defense industry average of 1.33%.

Transdigm Group's dividend payout ratio of 248.8% 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 4.79%, which is 3 percentage points higher than the defense industry average of 1.33%. 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 173.3% indicates that its high dividend yield might not be sustainable for the long-term.

3. Park Aerospace (NYSE:PKE)

Park Aerospace (NYSE:PKE) has an annual dividend yield of 2.16%, which is 1 percentage points higher than the defense industry average of 1.33%. 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 148.5% indicates that its dividend yield might not be sustainable for the long-term.

Why are defense stocks down?

Defense stocks were down -0.95% in the last day, and down -1.39% over the last week. Innovative Solutions & Support was the among the top losers in the aerospace & defense industry, dropping -31.53% yesterday.

Innovative Solutions and Support shares are trading lower after the company reported a Q3 EPS miss.

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 38 points higher than the defense industry average of 19. It passed 4 out of 7 valuation due diligence checks.

Textron's stock has dropped -6.59% in the past year. It has underperformed other stocks in the defense industry by -36 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 38 points higher than the defense industry average of 19. It passed 4 out of 7 valuation due diligence checks.

V2x's stock has gained 27.28% in the past year. It has underperformed other stocks in the defense industry by -2 percentage points.

3. Huntington Ingalls Industries (NYSE:HII)

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 24 points higher than the defense industry average of 19. It passed 3 out of 7 valuation due diligence checks.

Huntington Ingalls Industries's stock has gained 0.31% in the past year. It has underperformed other stocks in the defense industry by -29 percentage points.

Are defense stocks a good buy now?

58.93% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 9.53% over the next year.

4.29% of defense stocks have a Zen Rating of A (Strong Buy), 22.86% of defense stocks are rated B (Buy), 54.29% are rated C (Hold), 10% are rated D (Sell), and 8.57% 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 37.79x.

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. Optex Systems Holdings (NASDAQ:OPXS)

3. Ducommun (NYSE:DCO)

1. Transdigm Group (NYSE:TDG)

2. Smith & Wesson Brands (NASDAQ:SWBI)

3. Park Aerospace (NYSE:PKE)

1. Textron (NYSE:TXT)

2. V2x (NYSE:VVX)

3. Huntington Ingalls Industries (NYSE:HII)

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. Optex Systems Holdings (NASDAQ:OPXS)

3. Ducommun (NYSE:DCO)

1. Transdigm Group (NYSE:TDG)

2. Smith & Wesson Brands (NASDAQ:SWBI)

3. Park Aerospace (NYSE:PKE)

1. Textron (NYSE:TXT)

2. V2x (NYSE:VVX)

3. Huntington Ingalls Industries (NYSE:HII)

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.