Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Aerospace & Defense Industry Analysis

UpdatedJul 30, 2026
DataAggregated Company Financials
Companies103
  • 7D2.1%
  • 3M7.2%
  • 1Y18.9%
  • YTD5.5%

Over the last 7 days, the Aerospace & Defense industry has risen 6.6%, driven by gains from RTX of 10%. Meanwhile, Rocket Lab actually underperformed within the industry, shrinking 16% in the last week. This means that the industry has gained 25% over the past year. Looking forward, earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 30 Jul 2026US$1.8tUS$540.6bUS$39.6b38.1x45.1x3.3x
Sat, 27 Jun 2026US$1.7tUS$530.2bUS$37.1b38.9x46.2x3.2x
Mon, 25 May 2026US$1.7tUS$529.2bUS$37.0b35.6x44.7x3.1x
Wed, 22 Apr 2026US$1.7tUS$518.0bUS$37.3b37.8x44.9x3.2x
Fri, 20 Mar 2026US$1.7tUS$511.4bUS$35.3b41.2x46.9x3.2x
Sun, 15 Feb 2026US$1.7tUS$510.3bUS$35.6b40.7x47.3x3.3x
Tue, 13 Jan 2026US$1.5tUS$410.1bUS$32.0b40.7x46x3.6x
Thu, 11 Dec 2025US$1.3tUS$409.5bUS$32.0b36.7x40.1x3.1x
Sat, 08 Nov 2025US$1.3tUS$408.9bUS$32.1b38.5x41x3.2x
Mon, 06 Oct 2025US$1.3tUS$398.6bUS$31.3b39.1x42.1x3.3x
Wed, 03 Sep 2025US$1.2tUS$395.4bUS$31.1b34.4x39.1x3.1x
Fri, 01 Aug 2025US$1.2tUS$392.8bUS$31.2b36.5x38.5x3.1x
Sun, 29 Jun 2025US$1.1tUS$387.1bUS$29.9b36.5x38.3x3x
Tue, 27 May 2025US$1.0tUS$386.7bUS$29.9b32.9x34.8x2.7x
Thu, 24 Apr 2025US$894.4bUS$381.0bUS$28.7b30.5x31.1x2.3x
Sat, 22 Mar 2025US$948.0bUS$377.0bUS$29.1b32.2x32.6x2.5x
Mon, 17 Feb 2025US$920.6bUS$376.1bUS$30.0b33.9x30.7x2.4x
Wed, 15 Jan 2025US$903.0bUS$403.8bUS$27.9b34.3x32.3x2.2x
Fri, 13 Dec 2024US$905.7bUS$403.7bUS$27.9b34.5x32.4x2.2x
Sun, 10 Nov 2024US$966.7bUS$403.3bUS$27.9b36x34.6x2.4x
Tue, 08 Oct 2024US$952.7bUS$393.7bUS$23.6b34.7x40.4x2.4x
Thu, 05 Sep 2024US$879.6bUS$388.7bUS$23.3b33.6x37.8x2.3x
Sat, 03 Aug 2024US$863.5bUS$387.8bUS$23.1b32.9x37.4x2.2x
Mon, 01 Jul 2024US$790.1bUS$381.1bUS$24.0b32.1x32.9x2.1x
Wed, 29 May 2024US$819.0bUS$380.8bUS$23.8b31.5x34.4x2.2x
Fri, 26 Apr 2024US$787.2bUS$378.9bUS$23.5b31x33.5x2.1x
Sun, 24 Mar 2024US$597.8bUS$303.9bUS$18.8b31.7x31.7x2x
Tue, 20 Feb 2024US$569.9bUS$303.1bUS$18.5b29.9x30.8x1.9x
Thu, 18 Jan 2024US$573.6bUS$302.1bUS$20.9b28.5x27.4x1.9x
Sat, 16 Dec 2023US$566.6bUS$301.7bUS$20.9b27.7x27.1x1.9x
Mon, 13 Nov 2023US$551.2bUS$301.4bUS$20.7b30x26.6x1.8x
Wed, 11 Oct 2023US$535.2bUS$301.2bUS$22.4b26.7x23.9x1.8x
Fri, 08 Sep 2023US$543.1bUS$305.9bUS$22.9b24.7x23.8x1.8x
Sun, 06 Aug 2023US$554.8bUS$305.2bUS$22.8b26.6x24.3x1.8x
Price to Earnings Ratio

24.3x


Total Market Cap: US$554.8bTotal Earnings: US$22.8bTotal Revenue: US$305.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.7x202420252026
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 44.9x which is higher than its 3-year average PE of 35.7x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 20% 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-2.63%
Industrials-2.55%
Aerospace & Defense2.08%
Aerospace and Defense2.08%
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$215.2510.5%
+US$27.7b		35.9%PE37.5x
LMT Lockheed MartinUS$569.2010.7%
+US$12.8b		36.0%PE20.9x
GE General ElectricUS$350.632.8%
+US$9.8b		28.2%PE40.6x
BA BoeingUS$214.012.6%
+US$4.7b		-5.2%PE81x
TDG TransDigm GroupUS$1.26k5.9%
+US$3.9b		-22.0%PE37.9x

Latest News

RTX
US$215.25
RTX
7D
10.5%
1Y
35.9%
BA
US$214.01
Boeing
7D
2.6%
1Y
-5.2%
Seeking Alpha • 23h

Boeing: Let's Not Get Carried Away

Summary Boeing delivered a solid Q2, highlighted by positive free cash flow and robust commercial airplane demand, but upside appears priced in. BA's commercial airplane segment saw 14% y/y delivery growth, with production ramping to 47 planes/month and a strong backlog supporting sequential improvement. Operating margins improved, but valuation remains stretched at 35x EV/EBITDA (GAAP); I maintain a Hold rating pending better earnings revisions or cheaper entry. Positive free cash flow and quality assurance are critical; any setbacks here could pressure the stock during this multi-year recovery. Read the full article on Seeking Alpha
ATI
US$177.92
ATI
7D
-9.0%
1Y
88.8%
GE
US$350.63
General Electric
7D
2.8%
1Y
28.2%
Narrative Update • Jul 29

GE: Aftermarket Backlog And Equipment Ramp Will Shape Execution Risk

Analysts have raised their price target framework for General Electric to reflect a shift in fair value from about $288 to roughly $349. This change is supported by research that points to healthier demand trends, firmer profit margin assumptions, and a slightly lower discount rate applied to GE Aerospace's earnings power.
TXT
US$85.65
Textron
7D
-6.6%
1Y
9.7%
Seeking Alpha • Jul 28

Textron: A Report To Forget

Summary Textron Inc. delivered a mixed Q2, with modest beats but slowing Aviation growth and muted Industrial performance, yet I maintain my Buy rating. TXT's valuation remains compelling at 14.8x forward earnings, well below peers, with a price target of $120 based on 18x $6.69 EPS. The ongoing Industrial segment sale or spin-off process is a key near-term catalyst, expected to unlock shareholder value and reduce valuation discount. I anticipate Aviation deliveries and profitability to accelerate in H2, with Bell and Systems segments providing steady high-single digit growth. Read the full article on Seeking Alpha
LHX
US$297.53
L3Harris Technologies
7D
4.3%
1Y
8.5%
AXON
US$531.20
Axon Enterprise
7D
8.1%
1Y
-29.0%
Narrative Update • Jul 28

AXON: World Cup Booking Surge Will Eventually Test Lofty Expectations

Analysts have modestly reduced the fair value estimate for Axon Enterprise from $428.85 to $409.68, reflecting updated assumptions on discount rate, revenue growth, profit margins and future P/E in light of recent price target changes that cite strong World Cup related bookings and larger international opportunities. Analyst Commentary Recent research on Axon Enterprise shows a split in sentiment, with some firms lifting price targets on the back of World Cup related demand and international bookings, while other bearish analysts are reining in expectations.
HWM
US$272.79
Howmet Aerospace
7D
-2.8%
1Y
42.0%
CRS
US$530.62
Carpenter Technology
7D
-9.7%
1Y
87.1%
TDG
US$1,264.60
TransDigm Group
7D
5.9%
1Y
-22.0%
LMT
US$569.20
Lockheed Martin
7D
10.7%
1Y
36.0%
RKLB
US$58.60
Rocket Lab
7D
-16.3%
1Y
27.6%
Seeking Alpha • Jul 24

Rocket Lab: I Bought The Panic

Summary Rocket Lab shares have fallen 33% since my last coverage despite Iridium, defense wins, and continued Neutron commercialization progress. The company is becoming increasingly diversified through defense programs, vertical integration, and the transformative Iridium acquisition beyond launch services. Neutron has evolved from a technical milestone into the primary financial catalyst supporting future margins, cash flow, and earnings expansion. China's reusable rocket breakthrough highlights intensifying global competition, reinforcing management's strategy of building recurring revenue beyond launch vehicles. Despite the correction, Rocket Lab still trades near 30x forward sales, making successful execution critical to justify its premium valuation. Read the full article on Seeking Alpha
FTAI
US$197.37
FTAI Aviation
7D
-11.3%
1Y
36.6%
HEI
US$355.23
HEICO
7D
6.0%
1Y
9.2%
CW
US$679.41
Curtiss-Wright
7D
-7.2%
1Y
36.9%
Narrative Update • Jul 16

CW: Earnings Momentum And Growth Index Shift Will Support Steady Returns

The analyst price target for Curtiss-Wright has been adjusted from $791.17 to $814.83 as analysts factor in updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E expectations. What's in the News Curtiss-Wright is the focus of earnings previews, with recent coverage highlighting its track record of beating earnings estimates and pointing to a positive Earnings ESP ahead of its next quarterly report, according to Zacks.
BWXT
US$157.44
BWX Technologies
7D
-10.1%
1Y
3.3%
Narrative Update • Jul 08

BWXT: Precision Components Acquisition And SMR Licensing Will Shape Future Upside Potential

Analysts have nudged their price target for BWX Technologies higher, with fair value moving from $232.27 to $238.79 as they factor in recent upgrades to Buy ratings, as well as support from the Precision Components Group acquisition and updated guidance. Analyst Commentary Recent research on BWX Technologies centers on how the Precision Components Group acquisition and updated guidance feed into the company’s long term growth profile and valuation.