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
B
Defense is Zen Rated B and is the 51st ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Zen Rating
Sentiment
Market Cap
Shares
Institutional %
Insider %
Net Insider (L12M)
Net Insider (L3M)
ATRO
ASTRONICS CORP
$1.07B35,406,23766.18%33.82%Net SellingNet Selling
ISSC
INNOVATIVE SOLUTIONS & SUPPORT INC
$168.61M17,545,31430.98%58.93%Net Selling
DCO
DUCOMMUN INC
$1.01B14,877,74985.26%10.55%Net SellingNet Selling
TATT
TAT TECHNOLOGIES LTD
$378.97M10,940,35827.45%0.00%
ESLT
ELBIT SYSTEMS LTD
$17.60B44,547,67317.19%0.00%
TXT
TEXTRON INC
$13.84B180,538,79979.92%1.63%Net SellingNet Selling
CW
CURTISS WRIGHT CORP
$15.46B37,689,28476.87%2.17%Net SellingNet Selling
AOUT
AMERICAN OUTDOOR BRANDS INC
$161.22M12,734,79251.80%6.64%Net SellingNet Selling
ERJ
EMBRAER SA
$8.96B734,632,80610.22%0.00%
DRS
LEONARDO DRS INC
$11.09B266,049,20513.57%86.43%Net SellingNet Selling
HWM
HOWMET AEROSPACE INC
$65.72B403,674,06283.35%16.65%Net SellingNet Selling
VVX
V2X INC
$1.52B31,684,49594.50%5.50%Net SellingNet Selling
BWXT
BWX TECHNOLOGIES INC
$10.02B91,360,72687.04%12.96%Net SellingNet Selling
GD
GENERAL DYNAMICS CORP
$75.34B268,396,16384.54%5.35%Net SellingNet Selling
LOAR
LOAR HOLDINGS INC
$8.01B93,556,07125.72%74.28%Net Selling
WWD
WOODWARD INC
$12.48B59,501,27374.01%7.06%Net SellingNet Selling
LMT
LOCKHEED MARTIN CORP
$109.73B234,295,95372.08%0.42%Net SellingNet Selling
RTX
RTX CORP
$181.00B1,335,953,77078.42%0.41%Net SellingNet Selling
SARO
STANDARDAERO INC
$10.02B334,461,63052.55%47.45%Net SellingNet Selling
CAE
CAE INC
$8.13B320,265,10869.03%0.00%
CDRE
CADRE HOLDINGS INC
$1.43B40,659,58532.66%67.34%Net SellingNet Selling
MOG.A
MOOG INC
$5.81B31,530,36586.39%3.96%Net SellingNet Buying
VTSI
VIRTRA INC
$66.78M11,261,58819.67%80.33%Net Buying
RGR
STURM RUGER & CO INC
$611.04M16,554,96264.04%30.75%Net BuyingNet Buying
KTOS
KRATOS DEFENSE & SECURITY SOLUTIONS INC
$5.40B153,443,34276.74%23.26%Net SellingNet Selling
HEI
HEICO CORP
$38.73B138,947,24673.80%4.52%Net BuyingNet Selling
LHX
L3HARRIS TECHNOLOGIES INC
$43.03B186,945,63686.74%1.31%Net SellingNet Selling
NPK
NATIONAL PRESTO INDUSTRIES INC
$623.03M7,147,28253.94%24.93%Net SellingNet Selling
KRMN
KARMAN HOLDINGS INC
$5.86B132,174,59321.23%60.41%Net Selling
EH
EHANG HOLDINGS LTD
$1.37B143,769,7159.30%0.00%
AIR
AAR CORP
$2.26B36,103,80290.07%9.93%Net SellingNet Selling
TDG
TRANSDIGM GROUP INC
$79.94B56,167,08517.13%82.87%Net SellingNet Selling
MRCY
MERCURY SYSTEMS INC
$2.76B59,754,96073.68%26.32%Net SellingNet Selling
EVTL
VERTICAL AEROSPACE LTD
$488.16M84,602,72162.47%4.86%
POWW
AMMO INC
$228.01M118,756,73343.25%31.21%Net SellingNet Selling
PKE
PARK AEROSPACE CORP
$279.15M19,925,24377.86%11.16%Net BuyingNet Buying
AXON
AXON ENTERPRISE INC
$57.08B77,850,81273.87%9.10%Net SellingNet Selling
BYRN
BYRNA TECHNOLOGIES INC
$575.07M22,667,23554.74%37.40%Net SellingNet Selling
CVU
CPI AEROSTRUCTURES INC
$42.25M13,000,0728.33%91.67%Net Buying
HII
HUNTINGTON INGALLS INDUSTRIES INC
$9.03B39,239,13490.52%4.28%Net BuyingNet Buying
SATL
SATELLOGIC INC
$431.01M104,109,57922.62%33.58%
BA
BOEING CO
$155.19B754,005,47471.13%1.11%Net SellingNet Selling
AZ
A2Z CUST2MATE SOLUTIONS CORP
$276.08M29,590,2979.13%0.00%
VSEC
VSE CORP
$2.76B20,669,68486.28%13.72%Net SellingNet Selling
NOC
NORTHROP GRUMMAN CORP
$68.10B143,928,18581.16%4.48%Net SellingNet Selling
HXL
HEXCEL CORP
$4.40B80,411,28873.50%26.50%Net SellingNet Buying
MNTS
MOMENTUS INC
$10.91M5,536,6161.81%98.19%Net SellingNet Selling
RDW
REDWIRE CORP
$942.73M77,083,39211.49%88.51%Net BuyingNet Buying
SKYH
SKY HARBOUR GROUP CORP
$917.41M75,881,7297.17%92.83%Net SellingNet Selling
SPAI
SAFE PRO GROUP INC
$44.76M15,172,1851.10%54.13%
KWE
KWESST MICRO SYSTEMS INC
$1.92M375,58217.21%0.00%
AVAV
AEROVIRONMENT INC
$4.63B28,218,84235.38%64.62%Net BuyingNet Buying
SPCE
VIRGIN GALACTIC HOLDINGS INC
$170.54M35,528,3507.56%92.44%Net SellingNet Selling
ACHR
ARCHER AVIATION INC
$7.30B549,011,05937.50%26.64%Net BuyingNet Selling
DPRO
DRAGANFLY INC
$10.15M5,427,7952.54%0.00%
PL
PLANET LABS PBC
$1.19B302,251,02444.42%15.17%Net SellingNet Selling
LUNR
INTUITIVE MACHINES INC
$2.21B178,632,65521.82%12.34%Net SellingNet Selling
SWBI
SMITH & WESSON BRANDS INC
$430.79M44,002,70350.62%42.16%Net SellingNet Selling
PRZO
PARAZERO TECHNOLOGIES LTD
$12.18M12,817,0922.74%0.00%
SIDU
SIDUS SPACE INC
$29.65M18,304,4832.85%55.49%Net Buying
SPR
SPIRIT AEROSYSTEMS HOLDINGS INC
$4.44B117,318,94168.97%3.41%Net Selling
KITT
NAUTICUS ROBOTICS INC
$36.89M37,299,5890.95%99.05%Net BuyingNet Selling
RKLB
ROCKET LAB USA INC
$11.80B461,432,39347.60%38.62%Net SellingNet Selling
EVEX
EVE HOLDING INC
$1.38B297,644,2984.06%85.85%Net Buying
OPXS
OPTEX SYSTEMS HOLDINGS INC
$58.28M6,912,91921.53%53.31%Net SellingNet Selling
ASTC
ASTROTECH CORP
$9.93M1,693,9531.24%98.76%Net Buying
GPUS
HYPERSCALE DATA INC
$8.03M1,529,9950.15%99.85%Net Buying
TGI
TRIUMPH GROUP INC
$1.99B77,407,90677.43%8.51%Net SellingNet Selling
CODA
CODA OCTOPUS GROUP INC
$77.38M11,230,2482.41%97.59%
AIRI
AIR INDUSTRIES GROUP
$12.53M3,764,2371.77%98.23%Net BuyingNet Selling
SHMD
SCHMID GROUP NV
$123.34M42,974,8623.17%0.98%
SIF
SIFCO INDUSTRIES INC
$18.57M6,190,38818.33%56.30%
RAIN
RAIN ENHANCEMENT TECHNOLOGIES HOLDCO INC
$51.82M7,586,5131.44%43.68%Net Buying
HOVR
NEW HORIZON AIRCRAFT LTD
$21.40M31,385,1470.34%29.16%Net SellingNet Selling

Defense Stocks FAQ

What are the best defense stocks to buy right now in May 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 74 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: B.

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 44.49% over the past year, overperforming other defense stocks by 24 percentage points.

Astronics has an average 1 year price target of $21.00, a downside of -30.39% from Astronics's current stock price of $30.17.

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. Innovative Solutions & Support (NASDAQ:ISSC)


Innovative Solutions & Support (NASDAQ:ISSC) is the #2 top defense stock out of 74 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: B, Growth: B, Momentum: C, Sentiment: A, Safety: D, Financials: C, and AI: C.

Innovative Solutions & Support (NASDAQ:ISSC) has a Due Diligence Score of 33, which is 3 points higher than the defense industry average of 30.

ISSC passed 13 out of 38 due diligence checks and has average fundamentals. Innovative Solutions & Support has seen its stock return 77.63% over the past year, overperforming other defense stocks by 58 percentage points.

3. Ducommun (NYSE:DCO)


Ducommun (NYSE:DCO) is the #3 top defense stock out of 74 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: B, Growth: B, Momentum: C, Sentiment: B, Safety: B, Financials: C, and AI: B.

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 17.39% over the past year, underperforming other defense stocks by -3 percentage points.

Ducommun has an average 1 year price target of $70.00, an upside of 2.99% from Ducommun's current stock price of $67.97.

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.

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 5.27%, 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 3.98%, which is 3 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 high 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 138.9% indicates that its dividend yield might not be sustainable for the long-term.

Why are defense stocks up?

Defense stocks were up 0.75% in the last day, and up 2.95% over the last week. Virgin Galactic Holdings was the among the top gainers in the aerospace & defense industry, gaining 43.28% yesterday.

Virgin Galactic shares are trading higher following Q1 financial results

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 43, which is 25 points higher than the defense industry average of 18. It passed 3 out of 7 valuation due diligence checks.

V2x's stock has gained 3.65% in the past year. It has underperformed other stocks in the defense industry by -16 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 -12.35% in the past year. It has underperformed other stocks in the defense industry by -32 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 -14.34% in the past year. It has underperformed other stocks in the defense industry by -34 percentage points.

Are defense stocks a good buy now?

47.06% of defense stocks rated by analysts are a strong buy right now. On average, analysts expect defense stocks to rise by 5.97% over the next year.

10.94% of defense stocks have a Zen Rating of A (Strong Buy), 17.19% of defense stocks are rated B (Buy), 51.56% are rated C (Hold), 15.63% are rated D (Sell), and 4.69% 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 35.12x.
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.