Sectors & IndustriesIndustrialsAerospace & 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
C
Defense is Zen Rated C and is the 61st ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Market Cap
Price
Price Target
Upside/Downside
Top Analysts Upside/Downside
Consensus
Top Analysts Consensus
Analysts
Top Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
ATRO
ASTRONICS CORP
$1.12B$31.73$32.000.85%Hold13.72%N/AN/AN/A
DCO
DUCOMMUN INC
$1.26B$84.47$92.008.91%Strong Buy34.36%54.01%9.45%5.80%
ISSC
INNOVATIVE SOLUTIONS & SUPPORT INC
$249.80M$14.19N/AN/AN/AN/A13.07%-0.00%23.03%13.71%
OPXS
OPTEX SYSTEMS HOLDINGS INC
$86.07M$12.45N/AN/AN/AN/AN/AN/AN/AN/A
CW
CURTISS WRIGHT CORP
$18.23B$483.56$416.75-13.82%Buy45.66%9.12%24.26%12.54%
ESLT
ELBIT SYSTEMS LTD
$20.32B$455.70N/AN/AN/AN/A8.49%28.53%20.17%5.87%
CAE
CAE INC
$9.46B$29.54$32.5010.02%Buy44.51%10.87%11.18%4.88%
DRS
LEONARDO DRS INC
$12.51B$47.01$44.20-5.98%Buy5N/AN/AN/AN/A
ERJ
EMBRAER SA
$10.51B$57.20$52.00-9.09%Buy313.85%11.62%73.17%19.03%
GD
GENERAL DYNAMICS CORP
$80.51B$299.96$294.00-1.99%Buy113.15%7.20%22.29%8.76%
VVX
V2X INC
$1.57B$49.43$61.3324.08%Strong Buy63.89%102.86%18.69%6.24%
WWD
WOODWARD INC
$15.00B$252.03$251.14-0.35%Strong Buy75.18%6.83%21.58%11.23%
CODA
CODA OCTOPUS GROUP INC
$94.35M$8.40N/AN/AN/AN/AN/AN/AN/AN/A
LMT
LOCKHEED MARTIN CORP
$108.49B$463.06$522.5012.84%Buy103.73%11.28%N/AN/A
LOAR
LOAR HOLDINGS INC
$7.34B$78.49$94.0019.76%Strong Buy314.53%46.76%N/AN/A
HWM
HOWMET AEROSPACE INC
$73.23B$181.42$154.56-14.81%Strong Buy99.04%16.83%48.44%21.55%
TXT
TEXTRON INC
$14.89B$82.47$85.753.98%Hold84.51%22.39%18.17%7.80%
CDRE
CADRE HOLDINGS INC
$1.32B$32.55$38.0016.74%Hold110.53%21.35%19.53%9.45%
LHX
L3HARRIS TECHNOLOGIES INC
$48.43B$259.05$253.10-2.30%Strong Buy103.28%19.84%13.59%6.30%
BWXT
BWX TECHNOLOGIES INC
$12.57B$137.56$142.933.91%Buy69.37%11.01%N/AN/A
HEI
HEICO CORP
$44.08B$316.85$307.57-2.93%Buy76.66%9.46%N/AN/A
VTSI
VIRTRA INC
$73.76M$6.55$7.006.87%Strong Buy114.85%125.00%9.11%6.41%
AOUT
AMERICAN OUTDOOR BRANDS INC
$126.81M$9.94$19.0091.15%Strong Buy11.34%N/A2.73%1.97%
SARO
STANDARDAERO INC
$10.05B$30.06$32.006.45%Hold3N/AN/A21.26%7.98%
MOG.A
MOOG INC
$5.76B$182.62$210.0014.99%Buy23.12%20.11%18.30%7.77%
KTOS
KRATOS DEFENSE & SECURITY SOLUTIONS INC
$7.06B$46.02$48.675.75%Strong Buy912.40%72.46%8.85%6.12%
TATT
TAT TECHNOLOGIES LTD
$336.53M$30.76$36.0017.04%Strong Buy315.55%6.50%17.74%12.10%
RTX
RTX CORP
$195.29B$146.18$143.10-2.11%Strong Buy104.32%39.89%16.30%6.08%
NPK
NATIONAL PRESTO INDUSTRIES INC
$755.68M$105.73N/AN/AN/AN/AN/AN/AN/AN/A
AIR
AAR CORP
$2.64B$73.26$80.339.65%Strong Buy33.89%N/AN/AN/A
RGR
STURM RUGER & CO INC
$593.66M$35.86N/AN/AN/AN/AN/AN/A10.66%9.04%
KRMN
KARMAN HOLDINGS INC
$6.29B$47.57$49.253.53%Strong Buy4N/AN/A27.27%10.87%
BYRN
BYRNA TECHNOLOGIES INC
$732.15M$32.30$38.0017.65%Strong Buy219.66%-12.31%25.13%20.10%
EVTL
VERTICAL AEROSPACE LTD
$410.32M$4.85$14.50198.97%Strong Buy3N/AN/AN/A-61.89%
TDG
TRANSDIGM GROUP INC
$85.74B$1,526.44$1.58k3.83%Strong Buy76.72%16.81%-45.32%11.73%
AVAV
AEROVIRONMENT INC
$10.82B$236.77$271.3814.62%Strong Buy867.67%66.29%22.24%17.59%
MRCY
MERCURY SYSTEMS INC
$3.13B$52.40$52.400.00%Hold56.94%N/A3.66%2.20%
HII
HUNTINGTON INGALLS INDUSTRIES INC
$9.77B$248.92$250.000.43%Buy24.31%10.54%17.48%6.89%
BA
BOEING CO
$170.86B$226.60$219.86-2.98%Strong Buy1416.06%N/A-246.04%5.23%
PL
PLANET LABS PBC
$2.08B$6.85$6.57-4.13%Buy916.61%N/A-10.23%-6.91%
PKE
PARK AEROSPACE CORP
$306.30M$15.43N/AN/AN/AN/AN/AN/AN/AN/A
AXON
AXON ENTERPRISE INC
$62.74B$805.86$755.00-6.31%Strong Buy720.51%-50.92%4.72%1.98%
EH
EHANG HOLDINGS LTD
$1.23B$17.07$24.8045.28%Strong Buy386.44%N/A39.30%22.65%
VSEC
VSE CORP
$2.61B$126.39$146.6716.04%Strong Buy35.12%146.06%12.53%7.05%
NOC
NORTHROP GRUMMAN CORP
$73.11B$507.94$557.229.70%Strong Buy94.53%6.04%31.48%9.73%
HXL
HEXCEL CORP
$4.78B$59.45$58.83-1.04%Buy64.95%27.15%16.09%8.87%
SATL
SATELLOGIC INC
$358.14M$3.44N/AN/AN/AN/AN/AN/AN/AN/A
MNTS
MOMENTUS INC
$6.87M$1.24N/AN/AN/AN/AN/AN/AN/AN/A
AZ
A2Z CUST2MATE SOLUTIONS CORP
$364.05M$10.44$20.0091.66%Strong Buy1N/AN/AN/AN/A
VOYG
VOYAGER TECHNOLOGIES INC
N/A$41.35$49.0018.50%Strong Buy7N/AN/A-47.94%-6.18%
DFSC
DEFSEC TECHNOLOGIES INC
$4.53M$8.54N/AN/AN/AN/AN/AN/AN/AN/A
ACHR
ARCHER AVIATION INC
$5.74B$10.45$13.0024.40%Buy6N/AN/A-22.80%-18.98%
POWW
OUTDOOR HOLDING CO
$141.35M$1.21$2.0065.29%Strong Buy1-1.94%N/A-3.16%-2.36%
PRZO
PARAZERO TECHNOLOGIES LTD
$18.71M$1.46N/AN/AN/AN/AN/AN/AN/AN/A
RDW
REDWIRE CORP
$1.22B$15.78$23.0045.75%Buy554.10%N/AN/AN/A
DPRO
DRAGANFLY INC
$18.78M$3.46$3.501.16%Buy111.15%N/A-268.84%-57.38%
SWBI
SMITH & WESSON BRANDS INC
$382.84M$8.64$11.0027.31%Strong Buy1N/A46.67%5.23%3.48%
AIRO
AIRO GROUP HOLDINGS INC
N/A$21.48$30.6742.77%Strong Buy3N/AN/AN/AN/A
SKYH
SKY HARBOUR GROUP CORP
$762.61M$10.05$14.2541.79%Strong Buy281.01%N/A30.90%5.48%
LUNR
INTUITIVE MACHINES INC
$1.94B$10.86$15.7545.03%Buy629.51%N/AN/A-244.45%
HOVR
NEW HORIZON AIRCRAFT LTD
$50.22M$1.60$2.0025.00%Strong Buy1N/AN/A-436.17%-295.50%
SPCE
VIRGIN GALACTIC HOLDINGS INC
$120.98M$2.91$12.56331.72%Buy4298.27%N/AN/AN/A
SPR
SPIRIT AEROSYSTEMS HOLDINGS INC
$4.69B$39.98$37.25-6.83%Hold123.21%N/A-10.82%5.34%
GPUS
HYPERSCALE DATA INC
$2.98M$1.34N/AN/AN/AN/AN/AN/AN/AN/A
SIDU
SIDUS SPACE INC
$32.04M$1.76N/AN/AN/AN/AN/AN/AN/AN/A
KITT
NAUTICUS ROBOTICS INC
$38.05M$1.02N/AN/AN/AN/AN/AN/AN/AN/A
RKLB
ROCKET LAB CORP
$18.06B$39.14$29.27-25.21%Buy1134.65%N/AN/AN/A
EVEX
EVE HOLDING INC
$2.09B$7.01$6.50-7.28%Strong Buy2N/AN/A-170.05%-42.57%
SHMD
SCHMID GROUP NV
$128.07M$2.98N/AN/AN/AN/AN/AN/AN/AN/A
TGI
TRIUMPH GROUP INC
$2.01B$25.90$26.000.39%Hold47.42%48.05%-167.74%7.88%
AIRI
AIR INDUSTRIES GROUP
$12.38M$3.29N/AN/AN/AN/AN/AN/AN/AN/A
SPAI
SAFE PRO GROUP INC
$44.61M$2.94N/AN/AN/AN/AN/AN/AN/AN/A
RAIN
RAIN ENHANCEMENT TECHNOLOGIES HOLDCO INC
$25.19M$3.32N/AN/AN/AN/AN/AN/AN/AN/A
ASTC
ASTROTECH CORP
$9.49M$5.60N/AN/AN/AN/AN/AN/AN/AN/A
CVU
CPI AEROSTRUCTURES INC
$43.03M$3.31N/AN/AN/AN/AN/AN/AN/AN/A
SIF
SIFCO INDUSTRIES INC
$28.17M$4.55N/AN/AN/AN/AN/AN/AN/AN/A

Defense Stocks FAQ

What are the best defense stocks to buy right now in Jul 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 76 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: A, 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 56.07% over the past year, overperforming other defense stocks by 20 percentage points.

Astronics has an average 1 year price target of $32.00, an upside of 0.85% from Astronics's current stock price of $31.73.

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 76 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: B, Safety: B, Financials: C, 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 46.34% over the past year, overperforming other defense stocks by 10 percentage points.

Ducommun has an average 1 year price target of $92.00, an upside of 8.91% from Ducommun's current stock price of $84.47.

Ducommun stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Ducommun, 66.67% have issued a Strong Buy rating, 33.33% 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 76 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: A, Sentiment: A, Safety: D, Financials: C, and AI: C.

Innovative Solutions & Support (NASDAQ:ISSC) has a Due Diligence Score of 43, which is 13 points higher than the defense industry average of 30.

ISSC passed 18 out of 38 due diligence checks and has strong fundamentals. Innovative Solutions & Support has seen its stock return 152.94% over the past year, overperforming other defense stocks by 117 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. Smith & Wesson Brands (NASDAQ:SWBI)


Smith & Wesson Brands (NASDAQ:SWBI) has an annual dividend yield of 6.02%, which is 5 percentage points higher than the defense industry average of 1.41%. 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.

2. Transdigm Group (NYSE:TDG)


Transdigm Group (NYSE:TDG) has an annual dividend yield of 4.91%, which is 4 percentage points higher than the defense industry average of 1.41%.

Transdigm Group's dividend payout ratio of 253.1% 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 2.46%, which is 1 percentage points higher than the defense industry average of 1.41%. 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 0.7% in the last day, and up 1.41% over the last week. Safe Pro Group was the among the top gainers in the aerospace & defense industry, gaining 22.5% yesterday.

Safe Pro Group shares are trading higher after the company announced it sees significant opportunity to capitalize on the additional $30 billion in new U.S. Defense spending on AI and drones in the "One Big Beautiful Bill".

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 40 points higher than the defense industry average of 17. It passed 4 out of 7 valuation due diligence checks.

V2x's stock has gained 4.19% in the past year. It has underperformed other stocks in the defense industry by -32 percentage points.

2. Textron (NYSE:TXT)


Textron (NYSE:TXT) 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.

Textron has a valuation score of 57, which is 40 points higher than the defense industry average of 17. It passed 4 out of 7 valuation due diligence checks.

Textron's stock has dropped -3.12% in the past year. It has underperformed other stocks in the defense industry by -39 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 26 points higher than the defense industry average of 17. It passed 3 out of 7 valuation due diligence checks.

Sturm Ruger & Co's stock has dropped -12.32% in the past year. It has underperformed other stocks in the defense industry by -49 percentage points.

Are defense stocks a good buy now?

54.55% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 2.83% over the next year.

8.82% of defense stocks have a Zen Rating of A (Strong Buy), 22.06% of defense stocks are rated B (Buy), 42.65% are rated C (Hold), 22.06% are rated D (Sell), and 4.41% 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 38.19x.
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.