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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 21, 2026
DataAggregated Company Financials
Companies101
  • 7D-2.4%
  • 3M1.6%
  • 1Y17.3%
  • YTD2.4%

Over the last 7 days, the Aerospace & Defense industry has dropped 2.4%, driven by General Electric declining 3.4%. On the other hand Archer Aviation is actually up 17%. In the past year, the industry has gained 17%. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 21 Jul 2026US$1.7tUS$532.9bUS$37.5b37.7x44.8x3.1x
Thu, 18 Jun 2026US$1.8tUS$530.2bUS$37.1b40.3x49.3x3.5x
Sat, 16 May 2026US$1.6tUS$529.1bUS$37.6b34.3x43.7x3.1x
Mon, 13 Apr 2026US$1.6tUS$511.7bUS$36.3b38.6x45.3x3.2x
Wed, 11 Mar 2026US$1.7tUS$511.1bUS$35.4b43.2x48.9x3.4x
Fri, 06 Feb 2026US$1.6tUS$509.4bUS$35.5b40.1x45.9x3.2x
Sun, 04 Jan 2026US$1.4tUS$410.0bUS$32.0b39.3x43.5x3.4x
Tue, 02 Dec 2025US$1.3tUS$409.5bUS$32.4b37.8x40x3.2x
Thu, 30 Oct 2025US$1.4tUS$406.9bUS$32.5b41x41.8x3.3x
Sat, 27 Sep 2025US$1.3tUS$395.8bUS$31.0b38.1x40.8x3.2x
Mon, 25 Aug 2025US$1.2tUS$394.0bUS$31.0b34.7x38.6x3x
Wed, 23 Jul 2025US$1.2tUS$391.2bUS$31.1b35.1x38x3x
Fri, 20 Jun 2025US$1.1tUS$387.0bUS$29.9b34.2x36.8x2.8x
Sun, 18 May 2025US$1.0tUS$386.7bUS$30.0b33.9x35x2.7x
Tue, 15 Apr 2025US$922.8bUS$377.4bUS$28.8b29.8x32.1x2.4x
Thu, 13 Mar 2025US$916.6bUS$377.0bUS$30.1b31.7x30.5x2.4x
Sat, 08 Feb 2025US$942.9bUS$375.6bUS$29.9b33.1x31.6x2.5x
Mon, 06 Jan 2025US$889.1bUS$403.7bUS$28.0b33.4x31.8x2.2x
Wed, 04 Dec 2024US$936.5bUS$403.6bUS$28.0b35.1x33.5x2.3x
Fri, 01 Nov 2024US$902.1bUS$403.1bUS$27.7b32.5x32.6x2.2x
Sun, 29 Sep 2024US$920.0bUS$388.9bUS$23.3b34.6x39.5x2.4x
Tue, 27 Aug 2024US$882.7bUS$388.4bUS$23.2b33.7x38x2.3x
Thu, 25 Jul 2024US$833.8bUS$382.7bUS$23.8b34.1x35x2.2x
Sat, 22 Jun 2024US$807.2bUS$381.1bUS$23.9b32.2x33.8x2.1x
Mon, 20 May 2024US$806.8bUS$380.8bUS$23.8b30.8x33.9x2.1x
Wed, 17 Apr 2024US$762.1bUS$371.9bUS$27.6b30.7x27.6x2x
Fri, 15 Mar 2024US$583.5bUS$303.9bUS$18.6b31.2x31.4x1.9x
Sun, 11 Feb 2024US$566.0bUS$302.8bUS$18.4b29.7x30.8x1.9x
Tue, 09 Jan 2024US$575.2bUS$302.1bUS$20.9b27.4x27.5x1.9x
Thu, 07 Dec 2023US$568.2bUS$301.7bUS$20.9b28x27.2x1.9x
Sat, 04 Nov 2023US$555.5bUS$301.2bUS$20.6b28.5x27x1.8x
Mon, 02 Oct 2023US$518.8bUS$306.0bUS$22.5b26.4x23x1.7x
Wed, 30 Aug 2023US$554.8bUS$305.8bUS$22.8b25.6x24.3x1.8x
Fri, 28 Jul 2023US$561.7bUS$303.9bUS$22.8b26.6x24.7x1.8x
Price to Earnings Ratio

24.7x


Total Market Cap: US$561.7bTotal Earnings: US$22.8bTotal Revenue: US$303.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.6x202420252026
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 44.8x which is higher than its 3-year average PE of 35.6x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
  • The earnings for companies in the Aerospace & Defense industry have grown 18% 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-1.36%
Industrials-1.36%
Aerospace & Defense-2.44%
Aerospace and Defense-2.44%
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
ACHR Archer AviationUS$5.3116.7%
+US$577.3m		-55.2%PS2122.9x
BETA BETA TechnologiesUS$19.6412.5%
+US$503.0m		n/aPS125.4x
HXL HexcelUS$105.736.6%
+US$492.5m		75.9%PE67.8x
ATI ATIUS$186.241.4%
+US$339.8m		100.6%PE59.7x
DRS Leonardo DRSUS$44.412.4%
+US$282.8m		-5.1%PE40.9x

Latest News

ACHR
US$5.31
Archer Aviation
7D
16.7%
1Y
-55.2%
TXT
US$90.79
Textron
7D
1.5%
1Y
7.1%
BA
US$209.48
Boeing
7D
-2.8%
1Y
-8.7%
GE
US$341.30
General Electric
7D
-3.4%
1Y
29.8%
DRS
US$44.41
Leonardo DRS
7D
2.4%
1Y
-5.1%
RKLB
US$65.74
Rocket Lab
7D
-14.3%
1Y
39.3%
BETA
US$19.64
BETA Technologies
7D
12.5%
1Y
n/a
HONA
US$202.47
Honeywell Aerospace
7D
-5.0%
1Y
n/a
RTX
US$194.44
RTX
7D
-1.0%
1Y
28.3%
ATI
US$186.24
ATI
7D
1.4%
1Y
100.6%
Narrative Update • Jul 20

ATI: Aftermarket Strength And Defense Deals Will Shape Balanced Risk Profile

ATI's analyst fair value estimate has been lifted from $185.56 to $200.33 as analysts factor in stronger aerospace aftermarket demand, supportive sector fundamentals across commercial aerospace and defense, and updated P/E assumptions following a series of price target increases from major firms. Analyst Commentary Recent research on ATI centers on how the stock reflects expectations for aerospace aftermarket strength, broader commercial aerospace demand, and mixed sentiment around defense exposure.
LMT
US$509.54
Lockheed Martin
7D
-2.1%
1Y
10.6%
TDG
US$1,204.73
TransDigm Group
7D
-2.5%
1Y
-23.9%
HXL
US$105.73
Hexcel
7D
6.6%
1Y
75.9%
HWM
US$271.98
Howmet Aerospace
7D
0.3%
1Y
44.8%
Seeking Alpha • Jul 16

Howmet Aerospace: A High-Quality Business Priced For Perfection At Peak Margins

Summary Howmet Aerospace is indispensable in defense and civil aviation, but its current valuation is unjustifiably high. HWM faces structural growth limits due to regulated profit margins, capital intensity, and supply chain risks, especially from Boeing and raw material inflation. Valuation models (DCF, relative, DDM) indicate 40–88% downside, even under optimistic scenarios, with no margin of safety at current prices. I assign HWM a SELL rating due to peak margins, aggressive buybacks at elevated prices, and significant macro, operational, and regulatory risks. Read the full article on Seeking Alpha
NOC
US$523.96
Northrop Grumman
7D
-3.3%
1Y
1.7%
AIR
US$135.69
AAR
7D
3.7%
1Y
68.5%
Narrative Update • Jul 14

AIR: Aftermarket Expansion And AI Procurement Platform Will Support Measured Future Upside

Analysts have nudged their price target on AAR higher to $137.00 from $131.67, citing updated assumptions around discount rates, profitability, and future P/E expectations as the key drivers of this change. What’s in the News for AAR AAR is highlighted in a Zacks article, "3 Reasons Why Growth Investors Shouldn't Overlook AAR (AIR)," citing a favorable Growth Score, a top Zacks Rank and positive earnings estimate revisions as key factors (source: Zacks).