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U.S. Aerospace & Defense Industry Analysis

UpdatedJun 03, 2026
DataAggregated Company Financials
Companies102
  • 7D-1.0%
  • 3M-8.4%
  • 1Y25.6%
  • YTD2.6%

Over the last 7 days, the Aerospace & Defense industry has remained flat, although notably Axon Enterprise gained 27%. As for the the longer term, the industry is up 26% over the past 12 months. 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
Wed, 03 Jun 2026US$1.7tUS$530.1bUS$37.1b39.6x45.5x3.2x
Fri, 01 May 2026US$1.6tUS$524.5bUS$37.7b37x41.4x3x
Sun, 29 Mar 2026US$1.5tUS$511.7bUS$36.4b35.7x42.5x3x
Tue, 24 Feb 2026US$1.7tUS$510.3bUS$35.6b44.1x48.8x3.4x
Thu, 22 Jan 2026US$1.5tUS$410.1bUS$32.0b41.7x46.6x3.6x
Sat, 20 Dec 2025US$1.3tUS$410.0bUS$32.0b37.3x41.1x3.2x
Mon, 17 Nov 2025US$1.3tUS$409.2bUS$32.2b38.5x40.5x3.2x
Wed, 15 Oct 2025US$1.3tUS$398.7bUS$31.3b40x41.9x3.3x
Fri, 12 Sep 2025US$1.2tUS$395.7bUS$31.0b34.8x39.5x3.1x
Sun, 10 Aug 2025US$1.2tUS$393.8bUS$31.0b33.7x38.8x3x
Tue, 08 Jul 2025US$1.1tUS$387.1bUS$29.9b36.3x38.2x2.9x
Thu, 05 Jun 2025US$1.1tUS$386.8bUS$30.0b33.9x36.4x2.8x
Sat, 03 May 2025US$972.8bUS$385.7bUS$29.4b32.1x33.1x2.5x
Mon, 31 Mar 2025US$933.0bUS$377.4bUS$28.8b30.2x32.4x2.5x
Wed, 26 Feb 2025US$899.5bUS$376.3bUS$30.0b33x30x2.4x
Fri, 24 Jan 2025US$948.7bUS$372.3bUS$29.0b35.6x32.7x2.5x
Sun, 22 Dec 2024US$887.3bUS$403.7bUS$27.9b33.2x31.8x2.2x
Tue, 19 Nov 2024US$929.8bUS$403.7bUS$27.8b34.3x33.4x2.3x
Thu, 17 Oct 2024US$961.5bUS$393.7bUS$23.7b35.2x40.6x2.4x
Sat, 14 Sep 2024US$889.0bUS$388.8bUS$23.3b33.4x38.2x2.3x
Mon, 12 Aug 2024US$861.4bUS$388.4bUS$23.2b32.5x37.1x2.2x
Wed, 10 Jul 2024US$793.2bUS$381.1bUS$24.0b34x33x2.1x
Fri, 07 Jun 2024US$812.8bUS$381.1bUS$23.8b31.8x34.1x2.1x
Sun, 05 May 2024US$797.8bUS$380.4bUS$23.7b29.4x33.7x2.1x
Tue, 02 Apr 2024US$605.8bUS$303.9bUS$18.8b31.9x32.1x2x
Thu, 29 Feb 2024US$575.4bUS$303.7bUS$18.7b31.9x30.8x1.9x
Sat, 27 Jan 2024US$576.1bUS$306.4bUS$17.9b32.1x32.1x1.9x
Mon, 25 Dec 2023US$574.7bUS$302.1bUS$20.9b28.3x27.5x1.9x
Wed, 22 Nov 2023US$552.3bUS$301.6bUS$20.9b27.3x26.5x1.8x
Fri, 20 Oct 2023US$538.9bUS$301.5bUS$22.3b25.5x24.2x1.8x
Sun, 17 Sep 2023US$530.5bUS$305.9bUS$22.6b25.6x23.5x1.7x
Tue, 15 Aug 2023US$559.1bUS$305.7bUS$22.8b25.8x24.6x1.8x
Thu, 13 Jul 2023US$577.7bUS$298.0bUS$21.6b25.7x26.7x1.9x
Sat, 10 Jun 2023US$571.8bUS$300.3bUS$21.9b24.7x26.1x1.9x
Price to Earnings Ratio

26.1x


Total Market Cap: US$571.8bTotal 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 34.7x202420252026
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 45.5x which is higher than its 3-year average PE of 34.7x.
  • 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 Market1.22%
Industrials-0.21%
Aerospace & Defense-0.98%
Aerospace and Defense-0.98%
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$490.1227.2%
+US$8.4b		-35.4%PE191.8x
GE General ElectricUS$317.721.0%
+US$3.4b		27.7%PE38.7x
HEI HEICOUS$332.147.5%
+US$3.3b		11.3%PE58.7x
CRS Carpenter TechnologyUS$487.257.4%
+US$1.7b		97.8%PE50.6x
ARXS ArxisUS$42.848.4%
+US$1.4b		n/aPE382.3x

Latest News

RKLB
US$123.32
Rocket Lab
7D
-13.9%
1Y
361.5%
Seeking Alpha • 8h

Rocket Lab's Biggest Opportunity Is Still Ahead

Summary Rocket Lab's Space Systems generated $136.7 million in Q1 revenue versus $63.7 million from launch services, highlighting a major business shift. Revenue surged 63.5% year-over-year to a record $200.3 million, while backlog exceeded $2.2 billion, up more than 100%. Neutron remains the primary catalyst, with five launch contracts already secured despite the rocket not yet flying. Using $1.1-1.2 billion in 2027 revenue and a 60-65x EV/Sales multiple supports a $120-140 valuation range. Read the full article on Seeking Alpha
KTOS
US$63.27
Kratos Defense & Security Solutions
7D
11.4%
1Y
61.9%
LMT
US$513.43
Lockheed Martin
7D
-3.7%
1Y
6.9%
ARXS
US$42.84
Arxis
7D
8.4%
1Y
n/a
ATI
US$178.48
ATI
7D
5.8%
1Y
117.9%
AXON
US$490.12
Axon Enterprise
7D
27.2%
1Y
-35.4%
RTX
US$174.26
RTX
7D
-2.6%
1Y
26.7%
Seeking Alpha • 22h

Forget The SpaceX Hype: The #1 Hidden Space Defense Stock To Buy Now

Summary Steven Cress joins Nicole Benjamin on The Weekly Grade to expose why the media hype around recent aerospace giants is blinding investors to a much better, cash-rich space defense stock. Discover the specific free cash flow trends driving this industry giant's massive backlog. Read the full article on Seeking Alpha
NOC
US$536.59
Northrop Grumman
7D
-3.6%
1Y
9.9%
HEI
US$332.14
HEICO
7D
7.5%
1Y
11.3%
Narrative Update • Jun 02

HEI: Elevated P/E Will Constrain Returns Despite Record Earnings Momentum

Analysts have modestly raised their price target on HEICO to $302.69 from $295.97, reflecting updated assumptions around discount rates, revenue growth, profit margins, and future P/E expectations. What's in the News HEICO reported record Q2 fiscal 2026 results, with net income of US$233.8 million and net sales up 25%, supported by 18% consolidated organic growth and contributions from recent acquisitions.
GD
US$337.61
General Dynamics
7D
-2.0%
1Y
22.3%
GE
US$317.72
General Electric
7D
1.0%
1Y
27.7%
Narrative Update • Jun 01

GE: Long Cycle Services And Defense Contracts Will Support Future Returns

Analysts have trimmed their fair value estimate for General Electric to $405 from $425, reflecting slightly higher discount rate assumptions and more moderate expectations for revenue growth, profit margins, and future P/E, even as recent research points to solid aftermarket and services demand supporting the long term outlook for GE Aerospace. Analyst Commentary Recent research on GE Aerospace has centered on the durability of the services engine, the implications of the commercial original equipment ramp, and how these factors filter into valuation.
BWXT
US$187.26
BWX Technologies
7D
-8.4%
1Y
45.9%
HWM
US$250.72
Howmet Aerospace
7D
-4.3%
1Y
45.3%
FLY
US$43.37
Firefly Aerospace
7D
-26.3%
1Y
n/a
TDG
US$1,246.98
TransDigm Group
7D
1.7%
1Y
-14.4%
CRS
US$487.25
Carpenter Technology
7D
7.4%
1Y
97.8%
Seeking Alpha • May 10

Carpenter: Waiting For A Dip

Summary Carpenter Technology has delivered exceptional YTD and multi-year returns, driven by strong margin expansion and aerospace & defense demand. CRS guides for FY2024 operating income of $700–$705 million (+33% y/y) and $350 million in adjusted FCF, with continued growth expected into 2027. Despite robust fundamentals and margin gains, CRS trades at a low FCF yield (~1.6%), making shares unattractive for new entrants at current valuations. I recommend holding CRS and waiting for a broader market pullback or improved valuation before considering new positions. Read the full article on Seeking Alpha