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U.S. Aerospace & Defense Industry Analysis

UpdatedJun 08, 2026
DataAggregated Company Financials
Companies102
  • 7D-2.1%
  • 3M-6.0%
  • 1Y24.6%
  • YTD2.9%

Over the last 7 days, the Aerospace & Defense industry has dropped 2.1%, driven by a pullback from Boeing of 3.7%. Over the past 12 months, the industry was up 25%. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 09 Jun 2026US$1.7tUS$530.2bUS$37.2b39.6x45.1x3.2x
Thu, 07 May 2026US$1.6tUS$527.7bUS$38.0b37.3x41.5x3x
Sat, 04 Apr 2026US$1.6tUS$511.7bUS$36.3b35.9x43.8x3.1x
Mon, 02 Mar 2026US$1.7tUS$511.3bUS$35.6b44x48.9x3.4x
Wed, 28 Jan 2026US$1.6tUS$505.1bUS$34.7b42.2x47.5x3.3x
Fri, 26 Dec 2025US$1.4tUS$410.0bUS$32.0b38x43.3x3.4x
Sun, 23 Nov 2025US$1.3tUS$409.3bUS$32.3b36.1x38.9x3.1x
Tue, 21 Oct 2025US$1.3tUS$398.7bUS$31.3b38.7x42x3.3x
Thu, 18 Sep 2025US$1.3tUS$395.7bUS$31.0b36.1x40.5x3.2x
Sat, 16 Aug 2025US$1.2tUS$394.0bUS$31.0b34.2x38.4x3x
Mon, 14 Jul 2025US$1.2tUS$387.1bUS$29.9b35.3x38.6x3x
Wed, 11 Jun 2025US$1.1tUS$387.0bUS$29.9b34.8x37.2x2.9x
Fri, 09 May 2025US$983.4bUS$385.9bUS$29.4b33.2x33.4x2.5x
Sun, 06 Apr 2025US$839.1bUS$377.4bUS$28.8b26.5x29.1x2.2x
Tue, 04 Mar 2025US$937.5bUS$376.7bUS$30.1b32.8x31.1x2.5x
Thu, 30 Jan 2025US$938.0bUS$375.5bUS$27.9b34x33.6x2.5x
Sat, 28 Dec 2024US$897.9bUS$403.7bUS$28.0b33.4x32.1x2.2x
Mon, 25 Nov 2024US$952.9bUS$403.8bUS$27.8b35.1x34.2x2.4x
Wed, 23 Oct 2024US$972.7bUS$393.1bUS$27.7b33.9x35.1x2.5x
Fri, 20 Sep 2024US$902.6bUS$388.8bUS$23.2b33.4x39x2.3x
Sun, 18 Aug 2024US$878.3bUS$388.4bUS$23.2b33x37.8x2.3x
Tue, 16 Jul 2024US$794.8bUS$381.1bUS$24.0b35.8x33.1x2.1x
Thu, 13 Jun 2024US$800.8bUS$381.1bUS$23.9b32.1x33.6x2.1x
Sat, 11 May 2024US$816.4bUS$380.8bUS$23.8b31.5x34.3x2.1x
Mon, 08 Apr 2024US$607.6bUS$303.9bUS$18.9b32.5x32.2x2x
Wed, 06 Mar 2024US$583.5bUS$303.9bUS$18.7b31.3x31.2x1.9x
Fri, 02 Feb 2024US$581.6bUS$306.9bUS$18.1b31.7x32.1x1.9x
Sun, 31 Dec 2023US$580.5bUS$302.1bUS$20.9b28.4x27.8x1.9x
Tue, 28 Nov 2023US$560.0bUS$301.6bUS$20.9b28x26.8x1.9x
Thu, 26 Oct 2023US$541.8bUS$298.1bUS$20.0b28.1x27.1x1.8x
Sat, 23 Sep 2023US$515.1bUS$305.9bUS$22.6b24.8x22.8x1.7x
Mon, 21 Aug 2023US$552.9bUS$305.7bUS$22.8b25.3x24.3x1.8x
Wed, 19 Jul 2023US$573.0bUS$298.0bUS$21.6b26.5x26.5x1.9x
Fri, 16 Jun 2023US$566.8bUS$300.3bUS$21.9b25.4x25.9x1.9x
Price to Earnings Ratio

25.9x


Total Market Cap: US$566.8bTotal Earnings: US$21.9bTotal Revenue: US$300.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 34.8x202420252026
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 45.1x which is higher than its 3-year average PE of 34.8x.
  • 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 19% 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-2.49%
Industrials-0.34%
Aerospace & Defense-2.11%
Aerospace and Defense-2.11%
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$178.662.4%
+US$5.7b		26.7%PE33.2x
WWD WoodwardUS$359.795.3%
+US$1.1b		53.4%PE41.7x
LMT Lockheed MartinUS$520.070.7%
+US$823.1m		8.2%PE25x
CRS Carpenter TechnologyUS$499.092.5%
+US$604.2m		97.2%PE51.8x
GD General DynamicsUS$340.860.5%
+US$448.2m		22.9%PE21.2x

Latest News

RKLB
US$113.65
Rocket Lab
7D
-7.1%
1Y
283.4%
HWM
US$246.55
Howmet Aerospace
7D
-3.5%
1Y
42.6%
Narrative Update • Jun 07

HWM: Defense Aerospace Strength And Technology Footprint Will Support Premium Future P/E Profile

Analysts have nudged the average price target for Howmet Aerospace slightly higher to about $340, reflecting updated models that factor in modest tweaks to growth, profitability and valuation assumptions, alongside a series of recent target increases across the Street. Analyst Commentary Recent research on Howmet Aerospace points to a generally constructive tone, with multiple bullish analysts adjusting targets higher and framing the stock as a key way to gain exposure to aerospace trends.
GD
US$340.86
General Dynamics
7D
0.5%
1Y
22.9%
Narrative Update • Jun 07

GD: Record Backlog And Defense Orders Will Support Future Returns

General Dynamics' updated analyst price target has edged lower, with recent cuts such as Citi's move to $364 and reductions from Jefferies and Deutsche Bank reflecting cautious timing expectations for any sector rebound, even as some analysts still point to buying opportunities after recent selloffs. Analyst Commentary Recent research on General Dynamics highlights a split view, with some analysts focusing on potential upside around aerospace exposure and others emphasizing timing risks and valuation sensitivity for defense.
WWD
US$359.79
Woodward
7D
5.3%
1Y
53.4%
TDG
US$1,206.28
TransDigm Group
7D
-2.6%
1Y
-17.4%
Narrative Update • Jun 07

TDG: Aftermarket Cash Flows And Buybacks Will Support Future Upside

TransDigm Group's updated analyst price target has moved slightly lower to $1,524. This reflects analysts' adjustments to fair value, discount rate, growth assumptions, margins, and future P/E after recent mixed target changes across the Street.
HEI
US$323.50
HEICO
7D
-2.9%
1Y
6.5%
LMT
US$520.07
Lockheed Martin
7D
0.7%
1Y
8.2%
Seeking Alpha • Jun 06

Lockheed Martin: Time To Pull The Trigger (Upgrade)

Summary Lockheed Martin is rated a buy as global defense spending accelerates, driven by conflicts in Ukraine and Iran. The company is ramping up production and investing heavily in capacity, particularly in missiles, counter-drone tech, and next-gen systems. Despite Q1 top and bottom line misses and margin pressure, management reaffirmed full-year guidance and expects profitability to improve in H2 2026. The stock trades at a discount to the Industrials sector, offering an attractive entry point amid a defense supercycle and robust international demand. Read the full article on Seeking Alpha
AIR
US$114.72
AAR
7D
4.3%
1Y
70.3%
Narrative Update • Jun 05

AIR: Defense And Aftermarket Platform Expansion Will Drive Further Upside

Analysts have kept their average price target for AAR steady at about $132 per share, with the latest update reflecting adjustments to assumptions for discount rate, profit margin and future P/E rather than a change in overall valuation. What's in the News AAR hosted its 2026 Investor Day on May 12, outlining a long term plan centered on parts, repair, and software for commercial and government fleets, and reaffirming guidance for Q4 and full fiscal 2026, including adjusted sales of $3.116b, adjusted EBITDA of $376m with a 12.1% margin, and adjusted EPS of $4.67 for the 12 months ended Q3 FY26 (Investor Day materials, May 12, 2026).
RTX
US$178.66
RTX
7D
2.4%
1Y
26.7%
CRS
US$499.09
Carpenter Technology
7D
2.5%
1Y
97.2%
Narrative Update • Jun 05

CRS: Record Q3 Earnings And Buybacks Will Support Balanced Outlook Into 2026

Analysts now set a fresh price target for Carpenter Technology of $459.50, up from $439.33. This reflects updated views on fair value, discount rate, revenue growth, profit margin and future P/E assumptions.
FTAI
US$230.46
FTAI Aviation
7D
-7.0%
1Y
84.8%
Narrative Update • Jun 04

FTAI: Power Platform And Engine Partnerships Will Drive Future Earnings Repricing

Analysts have lifted the implied fair value estimate for FTAI Aviation from about $350 to roughly $407 per share, citing updated assumptions around revenue growth, profit margins, and a lower future P/E multiple as key drivers behind the higher price targets presented in recent research. Analyst Commentary Recent research highlights a series of higher price targets for FTAI Aviation, with bullish analysts pointing to updated assumptions around revenue, margins, and valuation multiples.
NOC
US$540.81
Northrop Grumman
7D
0.3%
1Y
10.1%
Narrative Update • Jun 04

NOC: Space Defense And Drone Programs Will Drive Future Returns

Analysts trimmed the Northrop Grumman valuation target by about $10 per share to reflect slightly higher discount rates, modestly lower revenue growth and profit margin assumptions, and a small reset in projected future P/E in line with recent Street price target reductions to the $620 to $628 range. Analyst Commentary Recent Street research on Northrop Grumman points to a mixed view, with several firms resetting price targets into the low to mid US$600s and updating their models around growth, margins, and capital intensity.
GE
US$322.04
General Electric
7D
-0.8%
1Y
28.1%
BA
US$215.92
Boeing
7D
-3.7%
1Y
-0.7%
LHX
US$302.10
L3Harris Technologies
7D
-2.4%
1Y
23.1%
Narrative Update • Jun 02

LHX: 2028 Defense And Space Plan Will Benefit From Missile Unit IPO

Analysts have trimmed their average price target on L3Harris Technologies by about $1. This reflects slightly higher assumed risk and only marginal adjustments to long term growth, profitability, and P/E expectations.
TXT
US$91.43
Textron
7D
2.1%
1Y
18.6%