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U.S. Aerospace & Defense Industry Analysis

UpdatedSep 14, 2026
DataAggregated Company Financials
Companies110
  • 7D-2.9%
  • 3M-7.6%
  • 1Y8.4%
  • YTD-1.7%

Over the last 7 days, the Aerospace & Defense industry has dropped 2.9%, driven by General Electric declining 5.8%. In the past year, the industry has gained 8.4%. Earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 15 Sep 2026US$1.6tUS$546.6bUS$40.3b36.1x39.8x2.9x
Thu, 13 Aug 2026US$1.9tUS$545.3bUS$40.5b39.1x45.6x3.4x
Sat, 11 Jul 2026US$1.7tUS$530.6bUS$37.1b40.2x46.9x3.3x
Mon, 08 Jun 2026US$1.7tUS$530.2bUS$37.2b39.6x45.1x3.2x
Wed, 06 May 2026US$1.6tUS$526.7bUS$38.0b34.9x41.3x3x
Fri, 03 Apr 2026US$1.6tUS$511.7bUS$36.4b35.9x44.1x3.1x
Sun, 01 Mar 2026US$1.7tUS$511.3bUS$35.6b44x48.9x3.4x
Tue, 27 Jan 2026US$1.5tUS$412.0bUS$32.5b41.1x45.1x3.6x
Thu, 25 Dec 2025US$1.4tUS$410.0bUS$32.0b38x43.3x3.4x
Sat, 22 Nov 2025US$1.3tUS$409.2bUS$32.3b36.1x39.1x3.1x
Mon, 20 Oct 2025US$1.3tUS$398.7bUS$31.3b37.5x41.3x3.2x
Wed, 17 Sep 2025US$1.2tUS$395.7bUS$31.0b35.9x40.3x3.2x
Fri, 15 Aug 2025US$1.2tUS$394.0bUS$31.0b33.9x38.6x3x
Sun, 13 Jul 2025US$1.2tUS$387.1bUS$29.9b35.3x38.6x3x
Tue, 10 Jun 2025US$1.1tUS$386.8bUS$30.0b35x37x2.9x
Thu, 08 May 2025US$981.1bUS$385.8bUS$29.4b32.5x33.3x2.5x
Sat, 05 Apr 2025US$914.9bUS$377.4bUS$28.8b26.5x31.8x2.4x
Mon, 03 Mar 2025US$938.1bUS$376.7bUS$30.1b33.6x31.2x2.5x
Wed, 29 Jan 2025US$946.9bUS$373.8bUS$27.8b34x34.1x2.5x
Fri, 27 Dec 2024US$894.4bUS$403.7bUS$28.0b33.7x32x2.2x
Sun, 24 Nov 2024US$952.9bUS$403.8bUS$27.8b35.1x34.2x2.4x
Tue, 22 Oct 2024US$969.4bUS$393.7bUS$23.7b35.5x40.9x2.5x
Thu, 19 Sep 2024US$901.3bUS$388.8bUS$23.2b33.3x38.9x2.3x
Sat, 17 Aug 2024US$877.6bUS$388.4bUS$23.2b33x37.8x2.3x
Mon, 15 Jul 2024US$794.6bUS$381.1bUS$24.0b35.5x33.1x2.1x
Wed, 12 Jun 2024US$807.7bUS$381.1bUS$23.9b31.5x33.8x2.1x
Fri, 10 May 2024US$811.6bUS$380.8bUS$23.8b31.4x34.1x2.1x
Sun, 07 Apr 2024US$607.6bUS$303.9bUS$18.9b32.5x32.2x2x
Tue, 05 Mar 2024US$583.5bUS$303.7bUS$18.7b32.1x31.2x1.9x
Thu, 01 Feb 2024US$580.0bUS$306.5bUS$18.0b31.5x32.2x1.9x
Sat, 30 Dec 2023US$579.7bUS$302.1bUS$20.9b28.4x27.7x1.9x
Mon, 27 Nov 2023US$560.0bUS$301.6bUS$20.9b27.7x26.8x1.9x
Wed, 25 Oct 2023US$531.5bUS$301.5bUS$22.3b24.9x23.8x1.8x
Fri, 22 Sep 2023US$521.4bUS$305.9bUS$22.6b25.2x23.1x1.7x
Price to Earnings Ratio

23.1x


Total Market Cap: US$521.4bTotal Earnings: US$22.6bTotal Revenue: US$305.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 36.6x202420252026
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 39.8x which is higher than its 3-year average PE of 36.5x.
  • The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & 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 Trends

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

US Market-0.94%
Industrials-1.74%
Aerospace & Defense-2.90%
Aerospace and Defense-2.90%
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
NOC Northrop GrummanUS$527.392.4%
+US$1.8b		-8.2%PE16.7x
HONA Honeywell AerospaceUS$164.081.9%
+US$973.0m		n/aPE26.7x
LMT Lockheed MartinUS$529.380.8%
+US$946.2m		11.9%PE19.4x
AVAV AeroVironmentUS$153.406.0%
+US$473.8m		-38.9%PS3.9x
TXT TextronUS$80.581.9%
+US$259.7m		-2.0%PE14.8x

Latest News

CRS
US$420.38
Carpenter Technology
7D
-11.6%
1Y
74.1%
GE
US$317.56
General Electric
7D
-5.8%
1Y
10.7%
Seeking Alpha • 5h

GE Aerospace: Hedge Funds Love The Stock, So Should You

Summary GE remains an exceptional asset with a dominant competitive position, razor-blade economics and structurally growing end markets. CPP acquisition should help GE recapturing value from parts suppliers which have profited of a tight market in high-performance castings. EPS is poised for mid-teens compounding driven by LEAP rollout, operating leverage and shareholder-friendly capital allocation. Valuation is elevated, yet entirely fair. Assuming no multiple expansion we estimate ~15% annual TSR potential through 2030. Read the full article on Seeking Alpha
TXT
US$80.58
Textron
7D
1.9%
1Y
-2.0%
FTAI
US$176.00
FTAI Aviation
7D
-10.3%
1Y
2.0%
HWM
US$227.13
Howmet Aerospace
7D
-12.4%
1Y
20.0%
RTX
US$195.34
RTX
7D
-2.7%
1Y
23.3%
HONA
US$164.08
Honeywell Aerospace
7D
1.9%
1Y
n/a
Seeking Alpha • Sep 11

Honeywell Aerospace: 2026 Is A Year Of Reset, I'll Keep Watching

Summary Honeywell Aerospace shares are down 30% since my previous article, making the valuation more attractive, but operational improvements are needed before considering investment. HONA's Q2 saw 5% sales growth and a 9% backlog increase, but operating margins dropped sharply due to spinoff charges, higher costs, and supply constraints. Management cut 2026 organic sales growth and EBIT guidance significantly, citing supplier bottlenecks and slow aerospace manufacturing qualification as near-term headwinds. I expect 2026 to be a reset year for HONA, with more promising operational and financial improvements anticipated in 2027 as supply chain investments take effect. Read the full article on Seeking Alpha
NOC
US$527.39
Northrop Grumman
7D
2.4%
1Y
-8.2%
Seeking Alpha • Sep 11

Northrop Grumman: Defense Could Outperform In An AI Unwind, But I Still Prefer Cash

Summary Northrop Grumman is a Buy at current levels, supported by structural defense tailwinds and major roles in U.S. nuclear modernization and space. NOC offers durable value amid great-power rivalry, but growth lags peers, and execution risks persist, notably with segment margin declines and negative free cash flow. Valuation is reasonable with 38.5% implied upside to a $720 price target, though upside may materialize gradually, and NOC is best as a modest portfolio allocation. Defense equities like NOC may outperform in an AI capex unwind, but cash remains preferable for now given macro uncertainty and inconsistent crash-hedging performance. Read the full article on Seeking Alpha
AVAV
US$153.40
AeroVironment
7D
6.0%
1Y
-38.9%
New Narrative • Sep 09

AVAV | AeroVironment: What They Said vs. What They Did

TheGapReport: AeroVironment, Inc. (NASDAQ:AVAV) Q2 2027 (jun 29 - sep 9) AeroVironment reported first-quarter fiscal 2027 results, with record revenue of $480 million and funded backlog climbing 37% year-over-year to $1.5 billion.
SATL
US$4.85
Satellogic
7D
4.5%
1Y
30.0%
LMT
US$529.38
Lockheed Martin
7D
0.8%
1Y
11.9%
Narrative Update • Sep 08

LMT: Missile Demand And Margin Uncertainty Will Shape Future Earnings Path

Lockheed Martin's analyst price target has been nudged higher to $522.29 from $511.00 as analysts factor in assumptions of stronger missiles and munitions growth, raised long-term revenue estimates, and recent earnings beats that they see as underappreciated by the market. Analyst Commentary Recent Street research on Lockheed Martin shows a wide range of views on how much upside remains in the stock, even as many firms lift their price targets following recent earnings and updated long term assumptions.
LYNX
US$13.46
Lyntris
7D
6.2%
1Y
n/a
HEI
US$303.75
HEICO
7D
-6.7%
1Y
-6.1%
Narrative Update • Sep 03

HEI: Fixed Income Funding Will Support Future Earnings And Acquisition Momentum

Analysts have adjusted their price target on HEICO to $486 from about $466, citing revised assumptions around revenue growth, profit margins, and future P/E that result in a higher fair value estimate. What’s in the News for HEICO Crédit Agricole Securities (USA) Inc.
ATI
US$188.15
ATI
7D
-10.7%
1Y
142.9%
Narrative Update • Sep 03

ATI: Aerospace Aftermarket Demand And Cash Returns Will Support Higher Fair Value

The ATI analyst price target moves from $231 to $275, reflecting analysts' updated assumptions for stronger revenue growth, higher profit margins, and continued earnings power that supports a P/E near prior expectations. Analyst Commentary Recent Street research on ATI points to a cluster of higher price targets and constructive views on the company’s positioning, particularly in relation to aerospace and defense exposure and specialty alloys.
TDG
US$1,111.22
TransDigm Group
7D
-4.4%
1Y
-13.7%
Seeking Alpha • Aug 30

TransDigm Group: A Premium Option For Private-Equity-Like Exposure

Summary TransDigm Group is a buy as valuation lags fundamentals, offering rare relative value versus HEICO and historical multiples. TDG’s Q3 saw 22.5% YoY revenue growth, raised full-year guidance, and continued strong organic growth despite minor margin dilution from acquisitions. The business model’s high-margin, recurring aftermarket exposure supports elevated leverage and robust free cash flow, justifying its premium. Antitrust scrutiny and right-to-repair legislation pose risks, but recent acquisitions and MRO tailwinds reinforce TDG’s growth thesis. Read the full article on Seeking Alpha
NPK
US$153.33
National Presto Industries
7D
3.8%
1Y
34.0%