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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 09, 2026
DataAggregated Company Financials
Companies100
  • 7D-1.7%
  • 3M1.5%
  • 1Y25.4%
  • YTD6.8%

The Aerospace & Defense industry has gained 1.1% in the last week and Boeing up 2.9%. Meanwhile, General Electric actually underperformed within the industry, shrinking 5.0% in the last week. In the last 12 months, the industry was up 30%. 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
Thu, 09 Jul 2026US$1.8tUS$530.6bUS$37.1b40.8x47.9x3.3x
Sat, 06 Jun 2026US$1.7tUS$530.2bUS$37.2b39.6x45.6x3.2x
Mon, 04 May 2026US$1.6tUS$526.7bUS$38.0b34.9x41.7x3x
Wed, 01 Apr 2026US$1.5tUS$511.7bUS$36.4b36.2x41.5x3x
Fri, 27 Feb 2026US$1.7tUS$511.2bUS$35.6b43.8x48.2x3.4x
Sun, 25 Jan 2026US$1.5tUS$412.0bUS$32.5b41.1x45.3x3.6x
Tue, 23 Dec 2025US$1.3tUS$410.0bUS$32.0b38.4x42.1x3.3x
Thu, 20 Nov 2025US$1.3tUS$409.2bUS$32.3b35.9x39.7x3.1x
Sat, 18 Oct 2025US$1.3tUS$398.7bUS$31.3b37.5x41.4x3.3x
Mon, 15 Sep 2025US$1.2tUS$395.7bUS$31.0b34.7x39.8x3.1x
Wed, 13 Aug 2025US$1.2tUS$393.8bUS$31.0b32.2x38.7x3x
Fri, 11 Jul 2025US$1.1tUS$387.1bUS$29.9b35.5x38.4x3x
Sun, 08 Jun 2025US$1.1tUS$386.8bUS$30.0b34.3x37x2.9x
Tue, 06 May 2025US$987.8bUS$385.7bUS$29.4b32.3x33.6x2.6x
Thu, 03 Apr 2025US$944.0bUS$377.4bUS$28.8b30.5x32.8x2.5x
Sat, 01 Mar 2025US$922.4bUS$376.7bUS$30.1b33.6x30.6x2.4x
Mon, 27 Jan 2025US$954.4bUS$372.4bUS$29.1b35.4x32.9x2.6x
Wed, 25 Dec 2024US$894.5bUS$403.7bUS$27.9b33.6x32.1x2.2x
Fri, 22 Nov 2024US$935.1bUS$403.8bUS$27.8b34.7x33.6x2.3x
Sun, 20 Oct 2024US$969.4bUS$393.7bUS$23.7b35.5x41x2.5x
Tue, 17 Sep 2024US$900.7bUS$388.8bUS$23.3b33.5x38.7x2.3x
Thu, 15 Aug 2024US$868.6bUS$388.4bUS$23.2b32.7x37.4x2.2x
Sat, 13 Jul 2024US$796.9bUS$381.1bUS$24.0b35.5x33.2x2.1x
Mon, 10 Jun 2024US$809.4bUS$381.1bUS$23.9b31.8x33.9x2.1x
Wed, 08 May 2024US$810.5bUS$380.7bUS$23.8b30.6x34.1x2.1x
Fri, 05 Apr 2024US$597.4bUS$303.9bUS$18.8b32.1x31.7x2x
Sun, 03 Mar 2024US$577.6bUS$303.7bUS$18.7b31.8x30.9x1.9x
Tue, 30 Jan 2024US$576.3bUS$306.4bUS$17.9b32x32.1x1.9x
Thu, 28 Dec 2023US$578.5bUS$302.1bUS$20.9b28.7x27.7x1.9x
Sat, 25 Nov 2023US$560.0bUS$301.6bUS$20.9b27.7x26.8x1.9x
Mon, 23 Oct 2023US$532.4bUS$301.5bUS$22.3b25.2x23.9x1.8x
Wed, 20 Sep 2023US$530.6bUS$305.9bUS$22.6b25.9x23.5x1.7x
Fri, 18 Aug 2023US$551.0bUS$305.7bUS$22.8b25.2x24.2x1.8x
Sun, 16 Jul 2023US$574.7bUS$298.0bUS$21.6b26.1x26.6x1.9x
Price to Earnings Ratio

26.6x


Total Market Cap: US$574.7bTotal 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 35.4x202420252026
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 49.0x which is higher than its 3-year average PE of 35.4x.
  • 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 Market-0.43%
Industrials-2.50%
Aerospace & Defense-1.70%
Aerospace and Defense-1.70%
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
BA BoeingUS$224.952.9%
+US$5.0b		-0.7%PE92.3x
RTX RTXUS$194.911.6%
+US$4.2b		33.3%PE36.2x
NOC Northrop GrummanUS$545.114.8%
+US$3.6b		7.3%PE16.9x
GD General DynamicsUS$374.313.2%
+US$3.1b		24.8%PE23.3x
HWM Howmet AerospaceUS$271.581.6%
+US$1.7b		49.7%PE62.3x

Latest News

GE
US$356.03
General Electric
7D
-5.0%
1Y
42.2%
ARXS
US$43.11
Arxis
7D
-7.4%
1Y
n/a
NOC
US$545.11
Northrop Grumman
7D
4.8%
1Y
7.3%
Seeking Alpha • 16h

Northrop Grumman: Trump's Betting On A More Dangerous World

Summary Northrop Grumman Corporation is positioned for growth as Arctic defense and NATO surveillance demand accelerates, highlighted by recent Triton drone orders. NOC's backlog reached $96B, with diversified growth in missile defense, space systems, and autonomous platforms, supported by robust U.S. and allied defense budgets. Significant investments, including $2.5B for B-21 Raider production, will pressure near-term cash flows but underpin long-term earnings visibility. I maintain a Buy rating on NOC, trading at a forward P/E of 19.6x, reflecting reasonable valuation amid heightened geopolitical tensions and defense spending. Read the full article on Seeking Alpha
FTAI
US$216.10
FTAI Aviation
7D
-17.5%
1Y
95.7%
LMT
US$527.96
Lockheed Martin
7D
1.2%
1Y
14.0%
BA
US$224.95
Boeing
7D
2.9%
1Y
-0.7%
Seeking Alpha • 21h

Boeing 737 MAX: Fourth Line Accelerates $53 Billion Growth Opportunity

Summary Boeing has launched a fourth 737 MAX assembly line in Everett, significantly expanding production capacity and supporting a multi-year ramp-up. The current 737 MAX backlog supports monthly production rates of 72–80 units, yet BA is producing at just 42, indicating strong latent demand. By 2035, 737 MAX program revenues could exceed $53 billion annually, with cumulative revenues boosted 10% by an accelerated ramp-up on the new line. The fourth line offers BA strategic flexibility—enabling either stress relief on existing lines or a faster, value-accretive ramp to meet demand and reduce debt. Read the full article on Seeking Alpha
RTX
US$194.91
RTX
7D
1.6%
1Y
33.3%
AXON
US$599.80
Axon Enterprise
7D
1.0%
1Y
-25.6%
Seeking Alpha • Jul 07

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$83.35
Rocket Lab
7D
-16.7%
1Y
113.0%
Narrative Update • Jul 07

RKLB: Iridium Deal Execution Risk Will Test Vertically Integrated Space Platform Narrative

Rocket Lab's updated analyst price target has moved higher from about $47 to roughly $64, as analysts highlight the planned Iridium acquisition as a key driver for a more vertically integrated space services platform and for refined launch pricing expectations. Analyst Commentary Street research around Rocket Lab has been intensely focused on the proposed Iridium acquisition, with many analysts framing it as a key step toward a more complete space services platform that couples launch, spacecraft manufacturing, and communications services under one roof.
CRS
US$587.63
Carpenter Technology
7D
-3.7%
1Y
112.3%
Narrative Update • Jul 07

CRS: Aerospace Rebound And EPS Momentum Will Sustain Risky Earnings Multiple

Analysts have nudged their price target for Carpenter Technology to $488.89 from $469.50, reflecting updated assumptions about fair value, discount rate, profit margin, revenue growth, and future P/E expectations. What’s in the News for Carpenter Technology Carpenter Technology shares rose 27% after management reported a strong recovery in aerospace demand.
DRS
US$44.71
Leonardo DRS
7D
4.7%
1Y
-4.9%
Seeking Alpha • Jul 04

Leonardo DRS: Buy As Radar And Counter-Drone Demand Accelerate

Summary Leonardo DRS remains a buy, driven by robust demand for radar, power management, and defense electronics in a multi-domain defense supercycle. DRS is positioned to benefit from expanding defense budgets, sensor-rich battlefield trends, and program ramp-ups across naval, air, and land domains. Valuation is attractive with 13–20% upside, supported by EBITDA margin expansion, strong free cash flow growth, and a net cash balance. Potential for additional upside exists from share repurchases and possible valuation multiple expansion toward aerospace and defense peers. Read the full article on Seeking Alpha
WWD
US$399.58
Woodward
7D
-5.1%
1Y
58.5%
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.
HONA
US$224.35
Honeywell Aerospace
7D
-1.3%
1Y
n/a
HWM
US$271.58
Howmet Aerospace
7D
1.6%
1Y
49.7%
HEI
US$347.78
HEICO
7D
-3.3%
1Y
9.8%
Narrative Update • Jun 30

HEI: Record Results And Acquisition Capacity Will Support Measured Long Term Upside

Analysts have raised their price target for HEICO to $386.10, citing updated assumptions for fair value at $386.10 along with revised inputs for discount rate, revenue growth, profit margin and future P/E that collectively influence their valuation framework. What’s in the News for HEICO HEICO reported record fiscal Q2 2026 results, with higher net income, revenue, and operating margins across both the Flight Support Group and Electronic Technologies Group, according to recent earnings coverage.
GD
US$374.31
General Dynamics
7D
3.2%
1Y
24.8%