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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies99
  • 7D3.6%
  • 3M7.8%
  • 1Y30.7%
  • YTD8.8%

In the last week, the Aerospace & Defense industry is up 2.5%, with Axon Enterprise leading the way with a 30% gain. In the same time, Honeywell Aerospace was down 7.2%. This takes the industry's 12 month performance to a gain of 29%. 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, 02 Jul 2026US$1.8tUS$530.6bUS$37.1b39.3x47.4x3.3x
Sat, 30 May 2026US$1.7tUS$529.6bUS$37.1b40.2x46.6x3.3x
Mon, 27 Apr 2026US$1.6tUS$520.9bUS$37.1b35.9x41.9x3x
Wed, 25 Mar 2026US$1.6tUS$511.5bUS$35.4b39.8x45x3.1x
Fri, 20 Feb 2026US$1.7tUS$510.3bUS$35.6b43.8x48.2x3.4x
Sun, 18 Jan 2026US$1.5tUS$410.1bUS$32.0b42.6x48x3.7x
Tue, 16 Dec 2025US$1.3tUS$409.8bUS$32.0b37.5x41.3x3.2x
Thu, 13 Nov 2025US$1.3tUS$409.2bUS$32.2b38.7x41.5x3.3x
Sat, 11 Oct 2025US$1.3tUS$398.7bUS$31.3b38.9x42.4x3.3x
Mon, 08 Sep 2025US$1.2tUS$395.4bUS$31.1b34.3x39.2x3.1x
Wed, 06 Aug 2025US$1.2tUS$393.3bUS$31.2b36.3x38.5x3.1x
Fri, 04 Jul 2025US$1.1tUS$387.1bUS$29.9b35.9x38.2x2.9x
Sun, 01 Jun 2025US$1.1tUS$386.8bUS$30.0b33.7x36.1x2.8x
Tue, 29 Apr 2025US$941.8bUS$381.1bUS$28.8b31.5x32.7x2.5x
Thu, 27 Mar 2025US$966.5bUS$377.2bUS$28.9b32.4x33.5x2.6x
Sat, 22 Feb 2025US$899.1bUS$376.2bUS$30.0b32.9x30x2.4x
Mon, 20 Jan 2025US$924.0bUS$403.9bUS$27.9b34.3x33.1x2.3x
Wed, 18 Dec 2024US$902.7bUS$403.7bUS$27.9b34.2x32.3x2.2x
Fri, 15 Nov 2024US$969.3bUS$403.4bUS$27.9b33.7x34.7x2.4x
Sun, 13 Oct 2024US$956.8bUS$393.7bUS$23.6b33.8x40.5x2.4x
Tue, 10 Sep 2024US$884.6bUS$388.8bUS$23.3b33.2x38x2.3x
Thu, 08 Aug 2024US$836.6bUS$388.2bUS$23.1b31.8x36.2x2.2x
Sat, 06 Jul 2024US$795.1bUS$381.1bUS$24.0b34.3x33.1x2.1x
Mon, 03 Jun 2024US$817.3bUS$381.1bUS$23.9b31.5x34.3x2.1x
Wed, 01 May 2024US$791.7bUS$379.9bUS$23.5b29x33.6x2.1x
Fri, 29 Mar 2024US$605.6bUS$303.9bUS$18.8b32.4x32.1x2x
Sun, 25 Feb 2024US$575.5bUS$303.1bUS$18.6b30.7x31x1.9x
Tue, 23 Jan 2024US$578.3bUS$302.1bUS$20.9b29.5x27.7x1.9x
Thu, 21 Dec 2023US$574.7bUS$302.0bUS$20.9b28x27.5x1.9x
Sat, 18 Nov 2023US$553.0bUS$301.5bUS$20.7b27.9x26.7x1.8x
Mon, 16 Oct 2023US$540.6bUS$301.2bUS$22.4b25.6x24.1x1.8x
Wed, 13 Sep 2023US$528.6bUS$305.9bUS$22.9b25.2x23.1x1.7x
Fri, 11 Aug 2023US$558.4bUS$305.7bUS$22.9b25.7x24.4x1.8x
Sun, 09 Jul 2023US$574.0bUS$297.5bUS$21.7b25.3x26.4x1.9x
Price to Earnings Ratio

26.4x


Total Market Cap: US$574.0bTotal Earnings: US$21.7bTotal Revenue: US$297.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35.2x202420252026
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 46.7x which is higher than its 3-year average PE of 35.2x.
  • The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 3.3x.
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 Market1.64%
Industrials0.39%
Aerospace & Defense3.56%
Aerospace and Defense3.56%
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
AXON Axon EnterpriseUS$593.9630.0%
+US$11.1b		-23.3%PE232.4x
GE General ElectricUS$374.942.5%
+US$9.5b		53.2%PE45.7x
RTX RTXUS$191.783.6%
+US$9.0b		32.7%PE35.6x
RKLB Rocket LabUS$100.0717.2%
+US$8.5b		180.5%PS85.2x
LMT Lockheed MartinUS$521.826.1%
+US$7.0b		12.8%PE25.1x

Latest News

HWM
US$267.41
Howmet Aerospace
7D
-3.1%
1Y
52.0%
AXON
US$593.96
Axon Enterprise
7D
30.0%
1Y
-23.3%
RTX
US$191.78
RTX
7D
3.6%
1Y
32.7%
BA
US$218.58
Boeing
7D
-0.8%
1Y
3.1%
LMT
US$521.82
Lockheed Martin
7D
6.1%
1Y
12.8%
RKLB
US$100.07
Rocket Lab
7D
17.2%
1Y
180.5%
Seeking Alpha • 14h

Rocket Lab: The Iridium Deal Changes The Game (Rating Upgrade)

Summary Rocket Lab acquires Iridium, aiming for vertical integration and entry into the satellite communications application layer. A pivotal move to hedge against existential risk. RKLB gains access to Iridium's L-band spectrum, positioning itself to compete more effectively in a rapidly evolving market. It opens up the application game. Despite IRDM's modest growth, the acquisition is seen as existential for RKLB, while providing proven EBITDA profitability and application optionality. I upgrade RKLB to Speculative Buy, citing improved long-term growth prospects, oversold technicals, and credible strategic positioning despite execution risks. The market has returned to supporting RKLB's bullish thesis after a near 50% drop in the past few weeks. Read the full article on Seeking Alpha
WWD
US$420.93
Woodward
7D
-2.7%
1Y
69.2%
BWXT
US$191.25
BWX Technologies
7D
-7.0%
1Y
35.9%
GE
US$374.94
General Electric
7D
2.5%
1Y
53.2%
Narrative Update • Jun 30

GE: Services Backlog And Defense Contracts Will Drive Returns Over Time

Analysts have modestly raised their General Electric fair value estimate from $405.00 to about $424.91, reflecting updated assumptions that include steady service growth expectations at GE Aerospace and a slightly higher projected profit margin profile. Analyst Commentary Recent Street research on General Electric highlights a mix of confidence in GE Aerospace's services engine and some recalibration of expectations, especially around longer term aftermarket trends.
FTAI
US$261.83
FTAI Aviation
7D
-3.8%
1Y
131.4%
HEI
US$359.70
HEICO
7D
7.3%
1Y
12.8%
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.
ATI
US$192.17
ATI
7D
-2.7%
1Y
124.4%
GD
US$362.86
General Dynamics
7D
5.4%
1Y
23.5%
TDG
US$1,309.18
TransDigm Group
7D
-1.0%
1Y
-13.4%
Narrative Update • Jun 24

TDG: Aftermarket Strength And Buybacks Will Drive Future Upside Potential

TransDigm Group's analyst fair value estimate has inched up by $0.50 to $1,524.50, reflecting a blend of recent target hikes and cuts as analysts factor in updated views on discount rates, revenue growth, margins, and future price-to-earnings (P/E) assumptions. Analyst Commentary Recent Street research on TransDigm Group shows a mix of higher and lower price targets, with analysts weighing valuation, execution risk, and growth assumptions differently.
HONA
US$227.29
Honeywell Aerospace
7D
-7.2%
1Y
n/a
NOC
US$519.95
Northrop Grumman
7D
3.4%
1Y
4.2%
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...