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U.S. Aerospace and Defense Industry Analysis

UpdatedMar 05, 2026
DataAggregated Company Financials
Companies93
  • 7D2.4%
  • 3M21.8%
  • 1Y60.4%
  • YTDn/a

In the last week, the Aerospace and Defense industry is up 2.4%, with RTX up 6.6%. During this same period, the HEICO underperformed, falling 7.2%. This means that the industry has gained 60% over the past year. Looking forward, earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 06 Mar 2026US$1.7tUS$511.1bUS$35.6b45.9x49.1x3.4x
Sun, 01 Feb 2026US$1.7tUS$509.1bUS$35.4b40.6x46.7x3.3x
Tue, 30 Dec 2025US$1.4tUS$410.0bUS$32.0b37.6x42.7x3.3x
Thu, 27 Nov 2025US$1.3tUS$409.5bUS$32.4b38.4x39.5x3.1x
Sat, 25 Oct 2025US$1.3tUS$405.5bUS$32.4b39.6x41.7x3.3x
Mon, 22 Sep 2025US$1.3tUS$395.7bUS$31.0b36.4x40.9x3.2x
Wed, 20 Aug 2025US$1.2tUS$394.0bUS$31.0b33.5x38.5x3x
Fri, 18 Jul 2025US$1.2tUS$387.2bUS$29.9b35.7x39.5x3.1x
Sun, 15 Jun 2025US$1.1tUS$387.0bUS$29.9b33.9x37.2x2.9x
Tue, 13 May 2025US$1.0tUS$386.1bUS$29.4b33.9x34.1x2.6x
Thu, 10 Apr 2025US$852.9bUS$377.4bUS$28.8b30x29.6x2.3x
Sat, 08 Mar 2025US$916.1bUS$376.7bUS$30.1b31.8x30.5x2.4x
Mon, 03 Feb 2025US$948.3bUS$375.7bUS$30.0b33.9x31.6x2.5x
Wed, 01 Jan 2025US$881.1bUS$403.7bUS$28.0b33.1x31.5x2.2x
Fri, 29 Nov 2024US$945.5bUS$403.8bUS$27.8b35.1x34x2.3x
Sun, 27 Oct 2024US$932.7bUS$402.9bUS$27.7b33.7x33.7x2.3x
Tue, 24 Sep 2024US$916.0bUS$388.8bUS$23.2b34.4x39.5x2.4x
Thu, 22 Aug 2024US$877.5bUS$388.4bUS$23.2b33.4x37.8x2.3x
Sat, 20 Jul 2024US$807.9bUS$381.3bUS$24.0b36.8x33.6x2.1x
Mon, 17 Jun 2024US$787.2bUS$381.1bUS$23.9b31.6x33x2.1x
Wed, 15 May 2024US$805.5bUS$380.8bUS$23.8b30.5x33.8x2.1x
Fri, 12 Apr 2024US$773.1bUS$371.9bUS$27.6b30.7x28x2.1x
Sun, 10 Mar 2024US$584.4bUS$303.9bUS$18.7b31.4x31.3x1.9x
Tue, 06 Feb 2024US$568.8bUS$302.9bUS$18.4b29.2x30.9x1.9x
Thu, 04 Jan 2024US$579.0bUS$302.1bUS$20.9b27.3x27.7x1.9x
Sat, 02 Dec 2023US$561.0bUS$301.6bUS$20.9b28.1x26.9x1.9x
Mon, 30 Oct 2023US$534.8bUS$300.4bUS$20.6b24.7x25.9x1.8x
Wed, 27 Sep 2023US$513.9bUS$305.9bUS$22.6b24.5x22.8x1.7x
Fri, 25 Aug 2023US$552.0bUS$305.7bUS$22.8b25.1x24.2x1.8x
Sun, 23 Jul 2023US$574.6bUS$299.3bUS$23.0b26.8x25x1.9x
Tue, 20 Jun 2023US$573.5bUS$297.4bUS$21.9b25.7x26.2x1.9x
Thu, 18 May 2023US$563.6bUS$300.1bUS$21.8b23.4x25.8x1.9x
Sat, 15 Apr 2023US$588.7bUS$294.7bUS$21.8b24.3x27x2x
Mon, 13 Mar 2023US$571.4bUS$294.6bUS$21.7b23.5x26.3x1.9x
Price to Earnings Ratio

26.3x


Total Market Cap: US$571.4bTotal Earnings: US$21.7bTotal Revenue: US$294.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace and Defense Industry Price to Earnings3Y Average 33.2x202420252026
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 49.1x which is higher than its 3-year average PE of 33.2x.
  • The 3-year average PS ratio of 2.4x 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 18% per year over the last three years.
  • Revenues for these companies have grown 20% 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 Market-1.22%
Industrials-0.28%
Aerospace & Defense2.40%
Aerospace and Defense2.40%
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
RTX RTXUS$203.863.2%
+US$8.4b		58.9%PE40.6x
NOC Northrop GrummanUS$740.014.1%
+US$4.1b		55.7%PE25.1x
LMT Lockheed MartinUS$655.002.1%
+US$3.1b		41.9%PE30x
GD General DynamicsUS$360.702.8%
+US$2.7b		36.3%PE23.1x
AXON Axon EnterpriseUS$570.493.7%
+US$1.6b		14.3%PE367.1x

Latest News

RKLB
US$70.00
Rocket Lab
7D
-3.6%
1Y
275.1%
NOC
US$740.01
Northrop Grumman
7D
4.1%
1Y
55.7%
BA
US$222.06
Boeing
7D
-3.2%
1Y
40.2%

BA: Recent Widebody And Single Aisle Orders Will Support Fairly Balanced Outlook

Analysts have lifted their price target for Boeing slightly, with fair value moving from about $229.39 to $230.14 as they factor in updated assumptions on revenue growth, profit margins, the discount rate, and future P/E levels. What's in the News The FAA and EASA granted initial qualification certificates for Boeing 777-9 full-flight and flight training simulators at the Boeing Training Campus in Gatwick, enabling regulators to use these devices to validate and approve pilot training courseware before customer training begins.
DRS
US$45.82
Leonardo DRS
7D
5.7%
1Y
53.6%

DRS: 2026 Defense Demand And Backlog Support Balanced Risk Reward Profile

Narrative Update on Leonardo DRS The analyst price target for Leonardo DRS has moved from $40 to $47. Analysts link the change to strong interest in smaller defense names, company efforts around Germanium supply, solid free cash flow guidance, expanding naval propulsion opportunities, a robust $8.73b backlog supported by $1.1b of new awards, and an updated outlook through 2026.
AXON
US$570.49
Axon Enterprise
7D
3.7%
1Y
14.3%

AXON: Sector Multiple Pressure Will Test Long Term Public Safety Expansion

The analyst price target underpinning our Axon Enterprise fair value has been revised to reflect a lower implied valuation, with fair value moving from about $639.60 to roughly $521.24 as analysts factor in sector wide multiple compression, alongside ongoing confidence in Axon's growth, recurring revenue profile, and long term product expansion. Analyst Commentary Across recent research updates, most firms have trimmed their Axon price targets, even as they reiterate broadly constructive views on the business model and product roadmap.
LHX
US$360.10
L3Harris Technologies
7D
1.4%
1Y
68.4%
AVAV
US$220.56
AeroVironment
7D
-15.0%
1Y
63.3%

AVAV: SCAR Recompete Turbulence Will Set Up Future Unmanned And Space Opportunity

Narrative Update The analyst price target for AeroVironment has been trimmed by $4.90 to $390.00 as analysts weigh SCAR and Satellite Communications Augmentation Resource contract uncertainty against what they still see as multiple growth drivers and resilient long term demand for unmanned systems and phased array solutions. Analyst Commentary Recent research highlights a split in views on AeroVironment, with contract risk around the SCAR and Satellite Communications Augmentation Resource programs on one side and a broad set of growth opportunities in unmanned systems, phased arrays, and space on the other.
GE
US$326.99
General Electric
7D
-4.1%
1Y
66.8%

GE: Aerospace Moat And Long Cycle Services Will Drive Future Returns

The analyst fair value estimate for General Electric has moved from $394.00 to about $424.14 as analysts factor in a higher assumed revenue growth rate, a modestly different discount rate, and Street research highlighting GE Aerospace as a "best in class" operator with a deep competitive moat in a long cycle industry. Analyst Commentary Recent Street research on General Electric, and specifically GE Aerospace, has leaned constructive, with several bullish analysts updating their views around quality of execution, earnings power, and cash generation.
FTAI
US$273.47
FTAI Aviation
7D
-11.8%
1Y
152.6%
HWM
US$252.39
Howmet Aerospace
7D
-3.0%
1Y
102.7%

HWM: Aerospace And Gas Turbine Demand Will Support Sustained Future Earnings Power

Analysts have raised their average price target for Howmet Aerospace to $315 from about $286, citing stronger margin expectations, slightly revised growth assumptions, and a higher forward P/E multiple supported by recent earnings results and broad price target increases across Wall Street. Analyst Commentary Bullish analysts are largely supportive of the higher average price target, pointing to recent earnings, margin performance, and end market demand as key pillars behind their updated views on Howmet Aerospace.
LMT
US$655.00
Lockheed Martin
7D
2.1%
1Y
41.9%
RTX
US$203.86
RTX
7D
3.2%
1Y
58.9%

RTX: Fair Value View Weighs Aerospace Demand Against Defense Policy Constraints

Analysts have nudged their RTX fair value estimate higher to $216.92 from $214.54, reflecting updated targets across major firms that highlight slightly stronger revenue growth assumptions, a modestly adjusted discount rate, and a similar forward P/E outlook despite a small trim to profit margin expectations. Analyst Commentary Recent research updates cluster around a series of higher price targets for RTX, which helps explain the modest lift in the consolidated fair value estimate.
GD
US$360.70
General Dynamics
7D
2.8%
1Y
36.3%
ATI
US$154.18
ATI
7D
-5.7%
1Y
169.4%

ATI: Bullish Execution Expectations And Buybacks Will Shape A Balanced 2025 Outlook

The analyst price target for ATI has been revised from $118.25 to $145.63, reflecting updated views on revenue growth, profit margins, and future P/E following a series of recent bullish research calls from analysts. Analyst Commentary Recent research coverage has tilted clearly positive, with several bullish analysts lifting their price targets and initiating optimistic views that feed into the higher US$145.63 target.
TDG
US$1,294.96
TransDigm Group
7D
-1.5%
1Y
-3.7%
KRMN
US$97.14
Karman Holdings
7D
10.0%
1Y
245.0%