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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 03, 2026
DataAggregated Company Financials
Companies99
  • 7D5.2%
  • 3M10.1%
  • 1Y31.7%
  • YTD11.0%

The Aerospace & Defense industry is up 5.2% in the last week, with RTX up 6.8%. Meanwhile, ATI actually underperformed within the industry, shrinking 5.7% in the last week. In the last 12 months, the industry was up 32%. Looking forward, 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
Sat, 04 Jul 2026US$1.8tUS$530.6bUS$37.1b40.2x47.7x3.3x
Mon, 01 Jun 2026US$1.7tUS$529.6bUS$37.1b40.2x46.5x3.3x
Wed, 29 Apr 2026US$1.6tUS$521.3bUS$37.1b36.4x41.9x3x
Fri, 27 Mar 2026US$1.6tUS$511.7bUS$36.4b35.8x44.4x3.2x
Sun, 22 Feb 2026US$1.7tUS$510.3bUS$35.6b43.7x48.8x3.4x
Tue, 20 Jan 2026US$1.5tUS$410.1bUS$32.0b42.6x48x3.7x
Thu, 18 Dec 2025US$1.3tUS$409.8bUS$32.0b36.3x40.8x3.2x
Sat, 15 Nov 2025US$1.3tUS$409.2bUS$32.2b38.5x40.3x3.2x
Mon, 13 Oct 2025US$1.3tUS$398.7bUS$31.3b38.9x41.4x3.3x
Wed, 10 Sep 2025US$1.2tUS$395.4bUS$31.1b34.4x38.7x3x
Fri, 08 Aug 2025US$1.2tUS$393.6bUS$31.1b36.3x38.9x3.1x
Sun, 06 Jul 2025US$1.1tUS$387.1bUS$29.9b35.9x38.2x2.9x
Tue, 03 Jun 2025US$1.1tUS$386.8bUS$30.0b33.3x36.1x2.8x
Thu, 01 May 2025US$949.4bUS$381.1bUS$28.8b31.3x32.9x2.5x
Sat, 29 Mar 2025US$949.2bUS$377.4bUS$28.8b30.2x32.9x2.5x
Mon, 24 Feb 2025US$899.1bUS$376.2bUS$30.0b32.9x30x2.4x
Wed, 22 Jan 2025US$924.0bUS$403.9bUS$27.9b35.6x33.1x2.3x
Fri, 20 Dec 2024US$867.4bUS$403.7bUS$28.0b32.9x31x2.1x
Sun, 17 Nov 2024US$929.8bUS$403.7bUS$27.8b34.1x33.4x2.3x
Tue, 15 Oct 2024US$956.8bUS$393.7bUS$23.6b33.8x40.5x2.4x
Thu, 12 Sep 2024US$879.1bUS$388.8bUS$23.3b33x37.8x2.3x
Sat, 10 Aug 2024US$856.4bUS$388.4bUS$23.2b32.5x37x2.2x
Mon, 08 Jul 2024US$789.0bUS$381.1bUS$24.0b34.3x32.8x2.1x
Wed, 05 Jun 2024US$811.0bUS$381.1bUS$23.8b31.8x34x2.1x
Fri, 03 May 2024US$788.1bUS$380.4bUS$23.7b29.2x33.3x2.1x
Sun, 31 Mar 2024US$605.8bUS$303.9bUS$18.8b32.4x32.1x2x
Tue, 27 Feb 2024US$574.4bUS$303.1bUS$18.6b31x30.9x1.9x
Thu, 25 Jan 2024US$577.1bUS$304.9bUS$20.9b29x27.7x1.9x
Sat, 23 Dec 2023US$574.7bUS$302.1bUS$20.9b28.3x27.5x1.9x
Mon, 20 Nov 2023US$552.3bUS$301.6bUS$20.9b27.9x26.5x1.8x
Wed, 18 Oct 2023US$543.5bUS$301.2bUS$22.4b26.3x24.3x1.8x
Fri, 15 Sep 2023US$526.4bUS$305.9bUS$22.9b25.2x23x1.7x
Sun, 13 Aug 2023US$561.7bUS$305.7bUS$22.8b25.9x24.7x1.8x
Tue, 11 Jul 2023US$576.5bUS$298.0bUS$21.6b25.7x26.7x1.9x
Price to Earnings Ratio

26.7x


Total Market Cap: US$576.5bTotal Earnings: US$21.6bTotal Revenue: US$298.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.3x202420252026
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 47.7x which is higher than its 3-year average PE of 35.2x.
  • 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 Market1.38%
Industrials-1.75%
Aerospace & Defense5.18%
Aerospace and Defense5.18%
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$199.256.0%
+US$15.2b		36.7%PE37x
AXON Axon EnterpriseUS$597.0428.4%
+US$10.7b		-24.9%PE233.6x
RKLB Rocket LabUS$100.4618.8%
+US$9.2b		181.7%PS85.6x
GE General ElectricUS$377.522.3%
+US$8.9b		52.9%PE46x
LMT Lockheed MartinUS$545.917.6%
+US$8.9b		18.0%PE26.3x

Latest News

RKLB
US$100.46
Rocket Lab
7D
18.8%
1Y
181.7%
ATRO
US$70.83
Astronics
7D
-16.0%
1Y
160.5%
WWD
US$418.02
Woodward
7D
-3.2%
1Y
65.7%
Narrative Update • Jul 02

WWD: Aerospace Backlogs And Electrification Trends Will Shape Balanced 2026 Outlook

Woodward's analyst price target has been revised higher to $444.55 from $421.33, as analysts factor in updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E following a series of recent bullish coverage initiations and target increases. Analyst Commentary Recent Street research on Woodward points to a generally constructive view from bullish analysts, with most commentary focused on revenue growth drivers, free cash flow potential and positioning within commercial aerospace and electrification trends.
BA
US$226.49
Boeing
7D
4.3%
1Y
4.9%
BWXT
US$191.06
BWX Technologies
7D
-3.5%
1Y
33.7%
Seeking Alpha • Jul 02

BWX Technologies: Even A Q2 Beat And Raise Is Not Enough

Summary BWX Technologies continues to deliver robust results, driven by strong government contracts and surging commercial demand, but valuation remains stretched. Q2 is expected to show another revenue beat, with commercial operations benefiting from Kinectrics acquisition and organic growth, though margin pressure looms longer term. BWXT trades at a significant premium to peers, with a forward earnings multiple of 40.1x and a free cash flow yield of just 1.8%, limiting margin of safety. I maintain a Hold rating, awaiting either margin expansion or a more attractive entry point as the current valuation fully reflects positive fundamentals. Read the full article on Seeking Alpha
LMT
US$545.91
Lockheed Martin
7D
7.6%
1Y
18.0%
Seeking Alpha • Jul 02

Lockheed Martin: A Great Entry Point In The Defence Industry (Rating Upgrade)

Summary Lockheed Martin is upgraded to Buy as shares retrace to ~$500, offering a more attractive entry after a 20% pullback. Recent $43B+ in new missile and munitions contracts, including sole-source Sentinel A4 and THAAD awards, signal a tangible supply ramp and backlog-to-revenue conversion. LMT's valuation is now compelling, trading at 16.9x forward earnings and a ~5.7% FCF yield, near historical averages and at a discount to peers. Key risks remain: persistent margin pressure from fixed-price contracts and uncertainty around Congressional approval for the $1.5T defense budget and Golden Dome initiative. Read the full article on Seeking Alpha
MOG.A
US$417.42
Moog
7D
-1.9%
1Y
125.4%
HONA
US$247.15
Honeywell Aerospace
7D
11.8%
1Y
n/a
AXON
US$597.04
Axon Enterprise
7D
28.4%
1Y
-24.9%
RTX
US$199.25
RTX
7D
6.0%
1Y
36.7%
GE
US$377.52
General Electric
7D
2.3%
1Y
52.9%
Narrative Update • Jun 30

GE: Services Backlog And Defense Contracts Will Drive Returns Over Time

Analysts have modestly raised their General Electric fair value estimate from $405.00 to about $424.91, reflecting updated assumptions that include steady service growth expectations at GE Aerospace and a slightly higher projected profit margin profile. Analyst Commentary Recent Street research on General Electric highlights a mix of confidence in GE Aerospace's services engine and some recalibration of expectations, especially around longer term aftermarket trends.
FTAI
US$248.06
FTAI Aviation
7D
-4.6%
1Y
115.8%
ATI
US$188.10
ATI
7D
-4.7%
1Y
116.6%
YSS
US$24.90
York Space Systems
7D
-5.2%
1Y
n/a
AIR
US$140.11
AAR
7D
-2.1%
1Y
96.1%
GD
US$373.54
General Dynamics
7D
7.7%
1Y
26.7%