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U.S. Aerospace and Defense Industry Analysis

UpdatedAug 09, 2026
DataAggregated Company Financials
Companies105
  • 7D5.0%
  • 3M10.9%
  • 1Y27.0%
  • YTDn/a

The Aerospace and Defense industry is up 5.0% in the last week, with Boeing up 8.5%. During this same period, the Honeywell Aerospace underperformed, falling 18%. This takes the industry's 12 month performance to a gain of 27%. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 09 Aug 2026US$1.8tUS$545.2bUS$40.6b38.8x45.4x3.4x
Tue, 07 Jul 2026US$1.8tUS$530.6bUS$37.1b40.6x48.7x3.4x
Thu, 04 Jun 2026US$1.7tUS$530.2bUS$37.2b40x45x3.2x
Sat, 02 May 2026US$1.6tUS$526.7bUS$38.0b34.9x42.2x3x
Mon, 30 Mar 2026US$1.5tUS$511.7bUS$36.4b35.7x42.5x3x
Wed, 25 Feb 2026US$1.7tUS$510.6bUS$35.6b45x48.3x3.4x
Fri, 23 Jan 2026US$1.5tUS$412.0bUS$32.5b41.1x46.3x3.7x
Sun, 21 Dec 2025US$1.3tUS$410.0bUS$32.0b37.3x42.1x3.3x
Tue, 18 Nov 2025US$1.3tUS$409.2bUS$32.2b37.7x40.5x3.2x
Thu, 16 Oct 2025US$1.3tUS$398.7bUS$31.3b39.4x42.3x3.3x
Sat, 13 Sep 2025US$1.2tUS$395.7bUS$31.0b34.7x40x3.1x
Mon, 11 Aug 2025US$1.2tUS$393.8bUS$31.0b33.7x38.8x3x
Wed, 09 Jul 2025US$1.1tUS$387.1bUS$29.9b35.6x38.3x3x
Fri, 06 Jun 2025US$1.1tUS$386.8bUS$30.0b33.8x36.6x2.8x
Sun, 04 May 2025US$987.9bUS$385.7bUS$29.4b32.1x33.6x2.6x
Tue, 01 Apr 2025US$933.0bUS$377.4bUS$28.8b29.8x32.4x2.5x
Thu, 27 Feb 2025US$907.9bUS$376.5bUS$30.1b33.6x30.2x2.4x
Sat, 25 Jan 2025US$964.4bUS$372.3bUS$29.0b35.4x33.2x2.6x
Mon, 23 Dec 2024US$887.3bUS$403.7bUS$27.9b33.2x31.8x2.2x
Wed, 20 Nov 2024US$929.4bUS$403.8bUS$27.8b34.3x33.4x2.3x
Fri, 18 Oct 2024US$968.6bUS$393.7bUS$23.7b35.4x40.9x2.5x
Sun, 15 Sep 2024US$900.7bUS$388.8bUS$23.3b33.4x38.7x2.3x
Tue, 13 Aug 2024US$861.4bUS$388.4bUS$23.2b32.7x37.1x2.2x
Thu, 11 Jul 2024US$791.3bUS$381.1bUS$24.0b34.5x32.9x2.1x
Sat, 08 Jun 2024US$808.6bUS$381.1bUS$23.9b31.8x33.9x2.1x
Mon, 06 May 2024US$797.8bUS$380.4bUS$23.7b29.4x33.7x2.1x
Wed, 03 Apr 2024US$603.7bUS$303.9bUS$18.8b31.9x32x2x
Fri, 01 Mar 2024US$579.4bUS$303.7bUS$18.7b32.4x31x1.9x
Sun, 28 Jan 2024US$576.3bUS$306.4bUS$17.9b32.1x32.1x1.9x
Tue, 26 Dec 2023US$574.7bUS$302.1bUS$20.9b28.3x27.5x1.9x
Thu, 23 Nov 2023US$552.8bUS$301.6bUS$20.9b27.2x26.5x1.8x
Sat, 21 Oct 2023US$532.4bUS$301.5bUS$22.3b25.2x23.9x1.8x
Mon, 18 Sep 2023US$530.5bUS$305.9bUS$22.6b25.6x23.5x1.7x
Wed, 16 Aug 2023US$551.6bUS$305.7bUS$22.8b25.5x24.2x1.8x
Price to Earnings Ratio

24.2x


Total Market Cap: US$551.6bTotal Earnings: US$22.8bTotal Revenue: US$305.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace and Defense Industry Price to Earnings3Y Average 35.9x202420252026
Current Industry PE
  • Investors are optimistic on the American Aerospace and Defense industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 45.4x which is higher than its 3-year average PE of 35.9x.
  • The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Aerospace and Defense industry have grown 21% per year over the last three years.
  • Revenues for these companies have grown 21% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Comparison

How does U.S. Aerospace and Defense compare with similar industries?

US Market4.18%
Industrials3.85%
Aerospace & Defense5.00%
Aerospace and Defense5.00%
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$234.428.5%
+US$14.4b		2.3%PE88.7x
RKLB Rocket LabUS$82.8327.5%
+US$10.7b		85.3%PS72.9x
RTX RTXUS$223.033.6%
+US$10.5b		44.0%PE38.8x
GE General ElectricUS$370.082.8%
+US$10.4b		34.6%PE42.8x
ATI ATIUS$227.8421.6%
+US$5.4b		211.9%PE65.2x

Latest News

KTOS
US$60.77
Kratos Defense & Security Solutions
7D
30.4%
1Y
-4.9%
SARO
US$29.19
StandardAero
7D
-0.4%
1Y
5.9%
AXON
US$571.01
Axon Enterprise
7D
8.2%
1Y
-32.2%
BA
US$234.42
Boeing
7D
8.5%
1Y
2.3%
ATI
US$227.84
ATI
7D
21.6%
1Y
211.9%
NOC
US$571.58
Northrop Grumman
7D
5.4%
1Y
-1.6%
Seeking Alpha • Aug 08

Northrop Grumman Q2 2026: The Strategic Moat Widens Amid A $7.6B Sentinel Surge

Summary Northrop Grumman earns a BUY rating, driven by its indispensable role in the US nuclear triad and robust Q2 2026 performance. NOC secured a $7.6 billion Sentinel backlog and accelerated B-21 Raider production, ensuring long-term, stable cash flows despite short-term margin impacts. Relative valuation methods indicate 30–72% upside potential for NOC, with a strong backlog and operational execution de-risking future earnings. Key risks include raw material bottlenecks, trade policy uncertainty, and regulatory shifts toward fixed-price contracts, but NOC's $104.7 billion backlog offers significant downside protection. Read the full article on Seeking Alpha
RTX
US$223.03
RTX
7D
3.6%
1Y
44.0%
Narrative Update • Aug 08

RTX: Backlog Strength And Defense Awards Will Shape Balanced Future Outcomes

RTX's analyst fair value estimate has been raised by about $5, with analysts pointing to strong Q2 results, higher full-year guidance, progress on Pratt & Whitney's GTF issues, and potential upside from defense awards and mandated avionics upgrades as key supports for the higher target range across the Street. Analyst Commentary Recent Street research on RTX centers on strong Q2 execution across all three segments, higher full-year guidance, and an active defense and commercial backlog.
HWM
US$281.88
Howmet Aerospace
7D
-0.1%
1Y
56.0%
Narrative Update • Aug 07

HWM: Red Hot Aftermarket Demand And Buybacks Will Shape Next Phase

Analysts have raised their average price target on Howmet Aerospace, with recent moves such as Baird lifting its target to $375 from $310 and other firms moving into the $311 to $340 range. They cite updated Q2 models, strong aerospace demand, and confidence in the company's organic growth and margin profile.
CW
US$691.52
Curtiss-Wright
7D
-4.5%
1Y
46.4%
HONA
US$168.51
Honeywell Aerospace
7D
-18.5%
1Y
n/a
GE
US$370.08
General Electric
7D
2.8%
1Y
34.6%
Seeking Alpha • Aug 07

GE Aerospace Is At Risk Of Overheating

Summary GE Aerospace continues to deliver robust revenue, profit, and cash flow growth, driven by strong aviation demand and expanding backlogs. Despite operational excellence and industry leadership, GE's current valuation appears stretched, with adjusted EPS guidance of $7.65–$7.85 for the year. Commercial Engines & Services segment led growth, with LEAP engine sales and services revenue surging, supported by a $210.79 billion backlog. I maintain a "Hold" rating on GE, as further stock appreciation could warrant a downgrade given premium valuation despite strong fundamentals. Read the full article on Seeking Alpha
RKLB
US$82.83
Rocket Lab
7D
27.5%
1Y
85.3%
YSS
US$11.41
York Space Systems
7D
-22.5%
1Y
n/a
TDG
US$1,225.25
TransDigm Group
7D
-2.3%
1Y
-11.8%
VVX
US$84.41
V2X
7D
-6.5%
1Y
66.2%
Seeking Alpha • Aug 05

V2X: Why The Post-Earnings Pullback Makes Sense

Summary The merger of Vectrus and Vertex into V2X has been a clear success. Investors who bet on the tie-up have been rewarded with 130% returns. But the drivers of those returns—multiple expansion, diversification, and deleveraging—have all played out, leaving real concern about a potential catalyst going forward. Recent history suggests that V2X indeed can keep growing the top line and improving margins, and both M&A and AI could add value. Without a clear differentiator, however, the bull case here simply no longer looks compelling enough. Read the full article on Seeking Alpha
DRS
US$44.80
Leonardo DRS
7D
-2.7%
1Y
8.0%
Narrative Update • Aug 04

DRS: AI Mission Software Acquisition Will Support Future Earnings Upside

Analysts have nudged their price targets for Leonardo DRS higher, with recent Street research moves supporting a shift in fair value to about $54.10 from $52.90 as they factor in updated assumptions on the discount rate, profit margin, and future P/E expectations. Analyst Commentary Recent research around Leonardo DRS gives investors a mix of supportive and cautious signals, with price targets such as the US$53 level from JPMorgan helping frame how analysts think about valuation, execution, and growth expectations today.