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

U.S. Aerospace & Defense Industry Analysis

UpdatedJul 07, 2026
DataAggregated Company Financials
Companies99
  • 7D4.7%
  • 3M9.8%
  • 1Y31.9%
  • YTD11.6%

In the last week, the Aerospace & Defense industry is up 4.7%, with RTX up 7.5%. In the same time, Rocket Lab was down 5.0%. In the last 12 months, the industry was up 32%. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Fri, 14 Jul 2023US$580.4bUS$298.0bUS$21.6b26x26.9x1.9x
Price to Earnings Ratio

26.9x


Total Market Cap: US$580.4bTotal 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 48.7x which is higher than its 3-year average PE of 35.3x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.4x.
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 Market0.79%
Industrials0.64%
Aerospace & Defense4.75%
Aerospace and Defense4.75%
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$201.377.5%
+US$18.9b		38.0%PE37.4x
BA BoeingUS$234.549.2%
+US$15.6b		7.3%PE96.2x
LMT Lockheed MartinUS$538.007.2%
+US$8.3b		14.7%PE25.9x
GD General DynamicsUS$376.888.3%
+US$7.8b		27.9%PE23.4x
NOC Northrop GrummanUS$547.7510.4%
+US$7.3b		7.8%PE17x

Latest News

AXON
US$622.35
Axon Enterprise
7D
11.0%
1Y
-21.2%
Seeking Alpha • 6h

Why Axon Remains A Hold Despite AI Momentum

Summary Axon's counter-drone business, Dedrone, is exceeding expectations. The company's first quarter AI Era Plan increased 700% year over year. The market's potential overvaluation and gross market compression may hold the stock price back. Although the stock may be overvalued in the short term, AXON's long-term growth initiatives justify a hold. Read the full article on Seeking Alpha
RKLB
US$93.09
Rocket Lab
7D
-5.0%
1Y
139.4%
Seeking Alpha • 7h

Rocket Lab Is Betting Everything On A Rocket That Hasn't Flown

Summary Rocket Lab Corporation maintains a Strong Buy rating after announcing an $8B Iridium Communications Inc. acquisition, sharply increasing both upside and risk. RKLB delivered record Q1 revenue of $200.3M (+63.5% YoY), a $2.2B backlog, and outperformed on adjusted EBITDA loss, narrowing to $11.8M. Guidance anticipates another record quarter, but margins are set to dip due to low-margin contracts and investments in Neutron and recent acquisitions. The IRDM deal secures recurring high-margin revenue, but Neutron's delayed launch and bridge loan refinancing pose dilution and execution risks. Read the full article on Seeking Alpha
GE
US$378.68
General Electric
7D
1.3%
1Y
52.3%
Seeking Alpha • 13h

GE Aerospace: Great Business, Overvalued Stock (Downgrade)

Summary GE Aerospace (GE) is downgraded to Sell due to a stretched 40x PE and limited upside versus consensus targets. GE's core moat—engine service and parts—supports 15% annual EPS growth, but recent share price gains stem from market rotation, not improved fundamentals. The LEAP engine fleet's upcoming maintenance cycle will drive service revenue, but valuation already prices in robust growth and high margins. Consensus sees GE fully valued through YE27, with upside capped unless further multiple expansion occurs, making risk/reward unattractive. Read the full article on Seeking Alpha
LUNR
US$18.89
Intuitive Machines
7D
-9.9%
1Y
81.5%
Narrative Update • Jul 06

LUNR: Expanding Lunar Contract Backlog And Recent Selloff Shape Bullish 2026 Setup

Intuitive Machines' analyst price target has been nudged higher to about $40.78 from $38.00 as analysts weigh a series of recent NASA contract awards, an expanding $1.1b backlog, and multiple firms reiterating or lifting targets into the $40 to $75 range on expectations for continued lunar infrastructure contract activity. Analyst Commentary Recent Street research on Intuitive Machines clusters around a core theme, with bullish analysts pointing to a growing US$1.1b backlog, recurring NASA awards, and rising price targets, while also flagging execution and contract timing as key swing factors for valuation.
ATI
US$192.06
ATI
7D
-2.9%
1Y
119.3%
Narrative Update • Jul 06

ATI: Aerospace Expansion And Buybacks Will Shape A Balanced Risk Reward Outlook

ATI's analyst price target has moved from about $178.67 to roughly $185.56, with analysts citing updated assumptions for revenue growth, profit margins, the discount rate, and the future P/E as the key drivers behind the change. Analyst Commentary Recent Street research on ATI points to a cluster of price target increases, with bullish analysts updating their models based on revised assumptions for revenue growth, profitability, discount rates, and the future P/E they apply to the stock.
ATRO
US$71.79
Astronics
7D
-16.2%
1Y
170.2%
Narrative Update • Jul 06

ATRO: Army Radio Contract Acceleration Will Test Rich Execution Expectations

Astronics' updated analyst price target has moved higher to $100 from $85, with analysts pointing to the long-awaited $45 million Army radio test contract order as a key factor in this shift. What’s in the News for Astronics Astronics reports robust demand, record bookings, and an expanding backlog across its aerospace and defense businesses, with management raising organic guidance, according to recent coverage.
BA
US$234.54
Boeing
7D
9.2%
1Y
7.3%
LMT
US$538.00
Lockheed Martin
7D
7.2%
1Y
14.7%
HONA
US$237.70
Honeywell Aerospace
7D
8.0%
1Y
n/a
RTX
US$201.37
RTX
7D
7.5%
1Y
38.0%
FTAI
US$241.54
FTAI Aviation
7D
-8.4%
1Y
116.6%
FLY
US$28.00
Firefly Aerospace
7D
-3.6%
1Y
n/a
GD
US$376.88
General Dynamics
7D
8.3%
1Y
27.9%
HAWK
US$19.97
HawkEye 360
7D
-8.0%
1Y
n/a
DPC
US$48.52
DPC Holdings
7D
-6.3%
1Y
n/a
NOC
US$547.75
Northrop Grumman
7D
10.4%
1Y
7.8%
Analysis Article • Jun 20

Northrop Grumman (NOC) Stock Could Be 25.2% Undervalued After Record Backlog Update

Backlog, DARPA Project, and What They Mean for Northrop Grumman Stock Northrop Grumman (NOC) is drawing attention after reporting a record backlog of US$95.61b and highlighting its role in DARPA’s Rads to Watts program, giving investors fresh context for the stock’s recent performance. The backlog is tied in part to an expanded B-21 production agreement. It sits alongside full year 2026 guidance calling for sales between US$43.5b and US$44.0b and MTM adjusted EPS of US$27.40 to US$27.90. At...