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U.S. Aerospace & Defense Industry Analysis

UpdatedJun 26, 2026
DataAggregated Company Financials
Companies100
  • 7D-1.3%
  • 3M7.5%
  • 1Y26.3%
  • YTD5.2%

Over the last 7 days, the Aerospace & Defense industry has dropped 1.3%, driven by pullbacks in Rocket Lab and Honeywell Aerospace of 25% and 17%, respectively. This takes the industry's 12 month performance to a gain of 26%. 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
Fri, 26 Jun 2026US$1.7tUS$530.2bUS$37.1b38.8x46x3.2x
Sun, 24 May 2026US$1.7tUS$529.2bUS$37.0b35.6x44.7x3.1x
Tue, 21 Apr 2026US$1.7tUS$513.3bUS$36.4b39.3x46x3.3x
Thu, 19 Mar 2026US$1.7tUS$511.4bUS$35.2b43.6x47.3x3.3x
Sat, 14 Feb 2026US$1.7tUS$510.3bUS$35.6b40.7x46.8x3.3x
Mon, 12 Jan 2026US$1.5tUS$410.1bUS$32.0b40.3x45.8x3.6x
Wed, 10 Dec 2025US$1.3tUS$409.5bUS$32.0b36.2x39.9x3.1x
Fri, 07 Nov 2025US$1.3tUS$408.8bUS$32.1b38x41.4x3.3x
Sun, 05 Oct 2025US$1.3tUS$398.6bUS$31.3b39.1x42.1x3.3x
Tue, 02 Sep 2025US$1.2tUS$394.2bUS$31.0b34.4x39.1x3.1x
Thu, 31 Jul 2025US$1.2tUS$392.7bUS$31.2b36.3x38.2x3x
Sat, 28 Jun 2025US$1.1tUS$387.1bUS$29.9b36.5x38x2.9x
Mon, 26 May 2025US$1.0tUS$386.7bUS$29.9b32.9x34.8x2.7x
Wed, 23 Apr 2025US$901.6bUS$379.5bUS$28.5b30x31.6x2.4x
Fri, 21 Mar 2025US$956.5bUS$377.0bUS$29.1b32.6x32.9x2.5x
Sun, 16 Feb 2025US$920.6bUS$376.1bUS$30.0b33.9x30.7x2.4x
Tue, 14 Jan 2025US$876.7bUS$403.8bUS$27.9b33.7x31.4x2.2x
Thu, 12 Dec 2024US$911.9bUS$403.7bUS$27.9b35.2x32.6x2.3x
Sat, 09 Nov 2024US$935.3bUS$403.3bUS$27.9b36x33.5x2.3x
Mon, 07 Oct 2024US$952.7bUS$393.7bUS$23.6b35.1x40.4x2.4x
Wed, 04 Sep 2024US$903.6bUS$388.7bUS$23.3b33.6x38.8x2.3x
Fri, 02 Aug 2024US$866.2bUS$387.6bUS$23.0b33.8x37.6x2.2x
Sun, 30 Jun 2024US$790.1bUS$381.1bUS$24.0b34.3x32.9x2.1x
Tue, 28 May 2024US$819.0bUS$380.8bUS$23.8b31.8x34.4x2.2x
Thu, 25 Apr 2024US$784.5bUS$377.7bUS$23.4b31.5x33.5x2.1x
Sat, 23 Mar 2024US$597.8bUS$303.9bUS$18.8b31.7x31.7x2x
Mon, 19 Feb 2024US$569.9bUS$303.1bUS$18.5b29.9x30.8x1.9x
Wed, 17 Jan 2024US$583.2bUS$302.1bUS$20.9b28.8x27.9x1.9x
Fri, 15 Dec 2023US$579.5bUS$301.7bUS$20.9b27.7x27.7x1.9x
Sun, 12 Nov 2023US$550.0bUS$301.4bUS$20.7b30x26.6x1.8x
Tue, 10 Oct 2023US$535.9bUS$301.2bUS$22.4b27x23.9x1.8x
Thu, 07 Sep 2023US$540.6bUS$305.9bUS$22.9b24.8x23.7x1.8x
Sat, 05 Aug 2023US$554.5bUS$305.2bUS$22.8b26.6x24.3x1.8x
Mon, 03 Jul 2023US$578.0bUS$297.4bUS$21.7b25.4x26.6x1.9x
Price to Earnings Ratio

26.6x


Total Market Cap: US$578.0bTotal Earnings: US$21.7bTotal Revenue: US$297.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.1x202420252026
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 46.0x which is higher than its 3-year average PE of 35.1x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.2x.
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-2.68%
Industrials1.11%
Aerospace & Defense-1.28%
Aerospace and Defense-1.28%
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
GE General ElectricUS$371.363.8%
+US$14.3b		48.0%PE45.2x
AXON Axon EnterpriseUS$444.735.0%
+US$1.7b		-44.7%PE174x
RTX RTXUS$186.590.5%
+US$1.3b		30.8%PE34.6x
HEI HEICOUS$342.451.6%
+US$747.2m		6.6%PE60.6x
CRS Carpenter TechnologyUS$599.242.2%
+US$634.5m		119.2%PE62.2x

Latest News

WWD
US$436.44
Woodward
7D
1.5%
1Y
76.3%
GE
US$371.36
General Electric
7D
3.8%
1Y
48.0%
HEI
US$342.45
HEICO
7D
1.6%
1Y
6.6%
RTX
US$186.59
RTX
7D
0.5%
1Y
30.8%
Seeking Alpha • Jun 25

RTX: Own A Piece Of Global Multipolar Peace

Summary RTX Corporation is not a war trade. It is a peace-through-strength platform for a multipolar world that still needs air defense, engines, sensors, safe aviation, and allied readiness. After a 60% gain since my prior 'Buy' rating, RTX still has a credible setup: premium quality, disciplined sizing, and +15% base to +35% bull-case upside. The risk is execution at a premium valuation. Backlog must become deliveries, profit, and cash. But my balance of power thesis supports a 'Buy' rating. Read the full article on Seeking Alpha
AVAV
US$136.68
AeroVironment
7D
-19.4%
1Y
-49.8%
BA
US$218.12
Boeing
7D
-2.1%
1Y
7.7%
GD
US$344.70
General Dynamics
7D
-1.5%
1Y
18.3%
KTOS
US$46.32
Kratos Defense & Security Solutions
7D
-14.6%
1Y
12.1%
RKLB
US$80.69
Rocket Lab
7D
-24.8%
1Y
123.3%
Seeking Alpha • Jun 25

Why Rocket Lab Still Matters After SpaceX

Summary The SpaceX IPO removed Rocket Lab's scarcity premium but left revenue growth, backlog expansion, and Neutron milestones intact. Rocket Lab's opportunity lies in becoming the second strategic launch provider rather than directly competing against SpaceX. Growing defense programs, sovereign initiatives, and satellite constellations could expand demand beyond current industry supply capacity. Rocket Lab trades near 77x sales, leaving little room for execution mistakes if Neutron adoption disappoints. Read the full article on Seeking Alpha
ATRO
US$87.15
Astronics
7D
8.2%
1Y
211.5%
AXON
US$444.73
Axon Enterprise
7D
5.0%
1Y
-44.7%
Seeking Alpha • Jun 24

Axon: Time To Pull The Trigger (Rating Upgrade)

Summary Axon Enterprise is upgraded to a buy as fundamentals and growth prospects have strengthened while valuation remains nearly unchanged. AI-driven full-stack solutions and robust international adoption, including 100%+ YoY international revenue growth, reinforce its global leadership. Q1 results showed 34% YoY revenue growth, a raised 2026 outlook, and strong demand with 44% YoY bookings growth and 125% net revenue retention. Tariff pressures persist, but resilient adjusted EBITDA margin and a brightened near-term outlook make current risk/reward attractive for investors. Read the full article on Seeking Alpha
CRS
US$599.24
Carpenter Technology
7D
2.2%
1Y
119.2%
Narrative Update • Jun 23

CRS: Record Earnings And Buybacks Will Mask Risk Of Overextended Pricing Power

Analysts have raised their price target on Carpenter Technology by $10 to $469.50, citing updated assumptions for fair value, discount rate, revenue growth, profit margin and future P/E. These factors result in a slightly higher valuation framework.
HWM
US$273.14
Howmet Aerospace
7D
-1.6%
1Y
54.4%
Seeking Alpha • Jun 22

Howmet Aerospace: A Powerful Nexus Of Secular Trends

Summary Howmet Aerospace earns a 'Strong Buy' rating for its critical role in both the aerospace and AI infrastructure value chains. HWM commands a dominant market position, outpacing domestic competitors in aerospace revenue growth and leveraging a vast IP portfolio. The company is a key supplier to global gas turbine leaders, positioning HWM to benefit from sustained AI-driven energy demand and supply constraints. While HWM trades at elevated multiples, its consistent profitability improvements and exposure to secular megatrends justify market confidence in continued execution. Read the full article on Seeking Alpha
HONA.V
US$221.01
Honeywell Aerospace
7D
-17.5%
1Y
n/a
NOC
US$499.33
Northrop Grumman
7D
-4.3%
1Y
1.1%
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...
LOAR
US$77.37
Loar Holdings
7D
8.0%
1Y
-10.2%
Narrative Update • Jun 15

LOAR: Rebased Margin Assumptions Will Support Future Upside Despite Recent Market Repricing

Narrative Update on Loar Holdings Loar Holdings' consensus analyst price target has been reduced by multiple firms in recent research, with an aggregate cut of around $40 as analysts reflect updated assumptions around discount rates, growth, and valuation multiples. Analyst Commentary Recent research reports have centered on resetting price targets for Loar Holdings rather than changing overall views on the business.