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U.S. Aerospace & Defense Industry Analysis

UpdatedDec 05, 2025
DataAggregated Company Financials
Companies88
  • 7D-0.3%
  • 3M3.6%
  • 1Y32.3%
  • YTD38.0%

The Aerospace & Defense is pretty flat in the last 7 days, but Boeing has stood out, gaining 8.0%. The past year has been better, since the industry has gained 32% in that time. Looking forward, earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

Has the U.S. Aerospace & Defense Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 05 Dec 2025US$1.3tUS$409.5bUS$32.4b37.9x39.2x3.1x
Sun, 02 Nov 2025US$1.4tUS$408.1bUS$32.3b38.9x42.2x3.3x
Tue, 30 Sep 2025US$1.3tUS$395.8bUS$31.0b38x41.2x3.2x
Thu, 28 Aug 2025US$1.2tUS$394.2bUS$31.0b34.9x39.3x3.1x
Sat, 26 Jul 2025US$1.2tUS$392.6bUS$31.2b36.5x38.1x3x
Mon, 23 Jun 2025US$1.1tUS$387.0bUS$29.9b34.1x37.1x2.9x
Wed, 21 May 2025US$1.1tUS$386.7bUS$30.0b33.3x35.3x2.7x
Fri, 18 Apr 2025US$926.1bUS$377.4bUS$28.8b31.1x32.2x2.5x
Sun, 16 Mar 2025US$929.1bUS$377.0bUS$29.1b31.9x32x2.5x
Tue, 11 Feb 2025US$940.5bUS$375.6bUS$29.9b33.3x31.5x2.5x
Thu, 09 Jan 2025US$873.8bUS$403.9bUS$27.9b33.1x31.3x2.2x
Sat, 07 Dec 2024US$929.3bUS$403.7bUS$27.9b34.8x33.3x2.3x
Mon, 04 Nov 2024US$900.4bUS$403.1bUS$27.7b32.5x32.5x2.2x
Wed, 02 Oct 2024US$935.0bUS$393.7bUS$23.6b35.4x39.6x2.4x
Fri, 30 Aug 2024US$890.2bUS$388.7bUS$23.3b34.1x38.3x2.3x
Sun, 28 Jul 2024US$850.5bUS$387.2bUS$22.9b34.6x37.1x2.2x
Tue, 25 Jun 2024US$807.6bUS$381.1bUS$23.9b32.2x33.8x2.1x
Thu, 23 May 2024US$812.3bUS$380.8bUS$23.8b31.7x34.1x2.1x
Sat, 20 Apr 2024US$762.9bUS$371.8bUS$27.8b30.2x27.5x2.1x
Mon, 18 Mar 2024US$585.9bUS$303.9bUS$18.8b31.5x31.2x1.9x
Wed, 14 Feb 2024US$563.3bUS$303.0bUS$18.5b29.2x30.4x1.9x
Fri, 12 Jan 2024US$576.3bUS$302.1bUS$20.9b29.1x27.6x1.9x
Sun, 10 Dec 2023US$566.7bUS$301.7bUS$20.9b28.2x27.1x1.9x
Tue, 07 Nov 2023US$555.5bUS$301.3bUS$20.6b28.2x27x1.8x
Thu, 05 Oct 2023US$511.1bUS$301.2bUS$22.4b26x22.8x1.7x
Sat, 02 Sep 2023US$559.0bUS$305.8bUS$22.8b25.5x24.5x1.8x
Mon, 31 Jul 2023US$559.3bUS$304.0bUS$22.8b26.1x24.6x1.8x
Wed, 28 Jun 2023US$568.1bUS$297.4bUS$21.9b24.7x26x1.9x
Fri, 26 May 2023US$551.3bUS$300.3bUS$21.9b23.4x25.2x1.8x
Sun, 23 Apr 2023US$587.6bUS$294.9bUS$21.8b23x27x2x
Tue, 21 Mar 2023US$566.8bUS$294.6bUS$21.7b23.8x26.2x1.9x
Thu, 16 Feb 2023US$592.6bUS$292.5bUS$22.2b25.1x26.7x2x
Sat, 14 Jan 2023US$577.9bUS$287.0bUS$22.2b25.5x26.1x2x
Mon, 12 Dec 2022US$593.1bUS$286.9bUS$22.4b26.3x26.5x2.1x
Price to Earnings Ratio

26.5x


Total Market Cap: US$593.1bTotal Earnings: US$22.4bTotal Revenue: US$286.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 31.6x202320242025
Current Industry PE
  • Investors are optimistic on the American Aerospace & Defense industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 39.2x which is higher than its 3-year average PE of 31.6x.
  • The 3-year average PS ratio of 2.3x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 13% per year over the last three years.
  • Revenues for these companies have grown 13% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Industrials industry?

US Market0.81%
Industrials1.09%
Aerospace & Defense-0.31%
Aerospace and Defense-0.31%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
BA BoeingUS$201.878.0%
+US$11.4b		28.9%PS1.9x
RKLB Rocket LabUS$49.3717.2%
+US$3.9b		100.0%PS47.6x
ACHR Archer AviationUS$8.9519.5%
+US$1.1b		16.8%PB4x
AXON Axon EnterpriseUS$550.611.9%
+US$826.2m		-19.9%PE169x
LHX L3Harris TechnologiesUS$280.511.6%
+US$817.4m		17.8%PE29.8x

Latest News

AXON
US$550.61
Axon Enterprise
7D
1.9%
1Y
-19.9%
GE
US$291.86
General Electric
7D
-1.6%
1Y
68.8%
BETA
US$29.84
BETA Technologies
7D
10.8%
1Y
n/a
CW
US$550.03
Curtiss-Wright
7D
-2.3%
1Y
44.7%

CW: Expanded Buybacks Will Drive Future Returns And Support Bullish Outlook

Analysts have modestly raised their price target on Curtiss-Wright, citing a slightly higher assumed discount rate and updated long term valuation multiples that support a fair value estimate of approximately $608.17 per share. What's in the News Curtiss-Wright increased its share repurchase authorization by $416 million on November 20, 2025, bringing total buyback capacity to $2.066 billion (company announcement).
CRS
US$314.74
Carpenter Technology
7D
-1.3%
1Y
61.5%

CRS: Share Repurchases Will Drive Future Upside Potential

Analysts have modestly raised their price target on Carpenter Technology to approximately $382 per share, reflecting slightly higher assumed discount rates and long term profitability expectations. What's in the News Completed a share repurchase tranche, buying 200,000 shares for $49.12 million in the quarter, and totaling 775,000 shares for $150.99 million under the July 2024 authorization (company filing) Issued new guidance for fiscal 2026, projecting operating income of $660 million to $700 million, implying a 26% to 33% increase over fiscal 2025 with upside potential from higher volume, pricing, and productivity (company guidance) Set a fiscal 2027 operating income target of $765 million to $800 million, citing opportunities to exceed that range as strategic initiatives scale (company guidance) Added to the S&P Aerospace and Defense Select Industry Index, which may broaden the shareholder base via index-linked funds (index announcement) Valuation Changes Fair Value Estimate remains unchanged at approximately $382.37 per share, reflecting stable long term cash flow assumptions.
LMT
US$448.35
Lockheed Martin
7D
-1.3%
1Y
-13.4%

LMT: Rising Defense Export Demand Will Drive Returns Despite Execution Risks

Analysts have modestly raised their price targets on Lockheed Martin, with recent increases to $500 and $545 per share reflecting stronger order momentum in key programs and resilient aerospace demand, even as operational challenges and a higher discount rate temper the potential upside. Analyst Commentary Street research heading into the Q3 print reflects a balanced mix of optimism around Lockheed Martin's growth prospects and caution around execution risks and the broader defense spending backdrop.
HWM
US$196.27
Howmet Aerospace
7D
-4.1%
1Y
63.5%

HWM: Future Margin Expansion Will Be Driven By Rising Aero Engine Spares Demand

Analysts have raised their price target on Howmet Aerospace to $250 from $215, citing accelerating high margin growth, sustained double digit revenue expectations through 2026, and strengthening demand across aero and industrial gas turbine end markets. Analyst Commentary Street research remains overwhelmingly constructive on Howmet Aerospace, with multiple firms lifting price targets in response to strong quarterly execution and a clearer long term growth algorithm through 2026.
GD
US$341.70
General Dynamics
7D
0.5%
1Y
24.2%
BA
US$201.87
Boeing
7D
8.0%
1Y
28.9%
RKLB
US$49.37
Rocket Lab
7D
17.2%
1Y
100.0%
NOC
US$553.00
Northrop Grumman
7D
-2.5%
1Y
15.3%

NOC: Future Defense Budgets Will Support Cash Flows And Share Outperformance

Analysts have modestly raised their price target on Northrop Grumman to approximately $670 per share, reflecting confidence in the company’s stable mid single digit growth outlook, expanding 2026 budget visibility across key programs, and improving long term cash generation from platforms like B 21 and Sentinel. Analyst Commentary Recent Street research reflects a generally constructive stance on Northrop Grumman, with multiple price target increases clustered around the mid to high $600s and at least one upgrade to a Buy rating.
ACHR
US$8.95
Archer Aviation
7D
19.5%
1Y
16.8%
EVEX
US$5.04
Eve Holding
7D
34.4%
1Y
17.5%
RTX
US$171.31
RTX
7D
-1.1%
1Y
44.5%

RTX: Evolving Defense Priorities And Cybersecurity Will Drive Outlook Amid Cautious Optimism

Analysts have slightly raised their price target for RTX from $192.06 to $193.79, citing modest improvements in projected profit margin and minor adjustments in revenue growth forecasts. What's in the News RTX's Raytheon division is at the center of policy discussions after the U.S. lifted restrictions on Ukraine's use of allied-supplied long-range missiles.
VSEC
US$171.28
VSE
7D
-4.9%
1Y
44.4%

VSEC: Recent Acquisitions Will Accelerate Margin Expansion Through 2026

Analysts have increased their price target on VSE Corp. by $24 to $201, citing strong quarterly results, raised forward guidance, and expectations for enhanced earnings and margin accretion from recent acquisitions.
LHX
US$280.51
L3Harris Technologies
7D
1.6%
1Y
17.8%

LHX: Earnings Momentum Will Accelerate On Rising Demand For Advanced Defense Systems

The consensus analyst price target for L3Harris Technologies increased from $320 to $350. Analysts cite the company's strong positioning for future contract awards and recent improvements in the aerospace and defense sector outlook as key factors supporting the upward revision.