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U.S. Aerospace & Defense Industry Analysis

UpdatedJun 23, 2026
DataAggregated Company Financials
Companies101
  • 7D-1.3%
  • 3M3.9%
  • 1Y26.6%
  • YTD4.7%

The Aerospace & Defense industry is up 1.7% in the last week, with Honeywell Aerospace up 31%. Meanwhile, Lockheed Martin actually underperformed within the industry, shrinking 6.9% in the last week. This takes the industry's 12 month performance to a gain of 31%. Looking forward, 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
Tue, 23 Jun 2026US$1.7tUS$530.2bUS$37.1b40.2x46.7x3.3x
Thu, 21 May 2026US$1.6tUS$529.2bUS$37.5b35.4x42.6x3x
Sat, 18 Apr 2026US$1.6tUS$511.7bUS$36.3b39.3x45.2x3.2x
Mon, 16 Mar 2026US$1.6tUS$511.4bUS$35.2b41.6x46.6x3.2x
Wed, 11 Feb 2026US$1.7tUS$509.8bUS$35.5b41.9x47.3x3.3x
Fri, 09 Jan 2026US$1.4tUS$410.1bUS$32.0b39x44.4x3.5x
Sun, 07 Dec 2025US$1.3tUS$409.5bUS$32.0b37x39.7x3.1x
Tue, 04 Nov 2025US$1.4tUS$408.1bUS$32.3b38.5x42.2x3.3x
Thu, 02 Oct 2025US$1.3tUS$395.8bUS$31.0b38.9x42.2x3.3x
Sat, 30 Aug 2025US$1.2tUS$394.2bUS$31.0b34.4x39.4x3.1x
Mon, 28 Jul 2025US$1.2tUS$392.6bUS$31.2b36.5x38.4x3.1x
Wed, 25 Jun 2025US$1.1tUS$387.0bUS$29.8b35.3x37.3x2.9x
Fri, 23 May 2025US$1.0tUS$386.7bUS$30.0b32.1x34.9x2.7x
Sun, 20 Apr 2025US$921.1bUS$377.4bUS$28.8b31.1x32x2.4x
Tue, 18 Mar 2025US$929.1bUS$377.0bUS$29.1b32.5x32x2.5x
Thu, 13 Feb 2025US$948.2bUS$375.6bUS$29.9b33.9x31.7x2.5x
Sat, 11 Jan 2025US$883.2bUS$403.9bUS$27.9b33.2x31.6x2.2x
Mon, 09 Dec 2024US$927.5bUS$403.7bUS$27.9b34.8x33.2x2.3x
Wed, 06 Nov 2024US$900.1bUS$403.3bUS$27.7b33.6x32.5x2.2x
Fri, 04 Oct 2024US$950.3bUS$393.7bUS$23.6b35.1x40.3x2.4x
Sun, 01 Sep 2024US$903.6bUS$388.7bUS$23.3b34.3x38.8x2.3x
Tue, 30 Jul 2024US$850.5bUS$387.2bUS$22.9b34.2x37.1x2.2x
Thu, 27 Jun 2024US$794.5bUS$381.1bUS$23.9b32.3x33.3x2.1x
Sat, 25 May 2024US$812.1bUS$380.8bUS$23.8b31.8x34.1x2.1x
Mon, 22 Apr 2024US$762.3bUS$371.1bUS$27.8b29.4x27.4x2.1x
Wed, 20 Mar 2024US$591.9bUS$303.9bUS$18.9b31.5x31.4x1.9x
Fri, 16 Feb 2024US$567.8bUS$303.1bUS$18.5b30x30.7x1.9x
Sun, 14 Jan 2024US$583.1bUS$302.1bUS$20.9b29.3x27.9x1.9x
Tue, 12 Dec 2023US$571.1bUS$301.7bUS$20.9b28.3x27.3x1.9x
Thu, 09 Nov 2023US$552.8bUS$301.3bUS$20.6b28.3x26.8x1.8x
Sat, 07 Oct 2023US$502.4bUS$301.2bUS$22.4b26.5x22.4x1.7x
Mon, 04 Sep 2023US$559.0bUS$305.8bUS$22.8b25.5x24.5x1.8x
Wed, 02 Aug 2023US$562.4bUS$304.2bUS$22.8b26.4x24.7x1.8x
Fri, 30 Jun 2023US$575.2bUS$297.4bUS$21.7b25x26.5x1.9x
Price to Earnings Ratio

26.5x


Total Market Cap: US$575.2bTotal Earnings: US$21.7bTotal Revenue: US$297.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Aerospace & Defense Industry Price to Earnings3Y Average 35x202420252026
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 35.0x.
  • 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 Market-1.82%
Industrials1.73%
Aerospace & Defense-1.28%
Aerospace and Defense-1.28%
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
HONA.V Honeywell AerospaceUS$261.0330.5%
+US$19.3b		n/aPE32.5x
GE General ElectricUS$355.123.8%
+US$13.4b		43.3%PE43.3x
HWM Howmet AerospaceUS$280.363.7%
+US$4.0b		59.6%PE64.4x
ARXS ArxisUS$46.0612.4%
+US$2.1b		n/aPE182.4x
BWXT BWX TechnologiesUS$210.008.3%
+US$1.5b		47.8%PE55.8x

Latest News

RTX
US$181.83
RTX
7D
-1.0%
1Y
24.7%
RKLB
US$100.29
Rocket Lab
7D
-8.2%
1Y
205.9%
HWM
US$280.36
Howmet Aerospace
7D
3.7%
1Y
59.6%
Seeking Alpha • 20h

Howmet Aerospace: A Powerful Nexus Of Secular Trends

Summary Howmet Aerospace earns a 'Strong Buy' rating for its critical role in both the aerospace and AI infrastructure value chains. HWM commands a dominant market position, outpacing domestic competitors in aerospace revenue growth and leveraging a vast IP portfolio. The company is a key supplier to global gas turbine leaders, positioning HWM to benefit from sustained AI-driven energy demand and supply constraints. While HWM trades at elevated multiples, its consistent profitability improvements and exposure to secular megatrends justify market confidence in continued execution. Read the full article on Seeking Alpha
ATI
US$204.09
ATI
7D
4.2%
1Y
144.6%
Narrative Update • Jun 22

ATI: Higher Fair Value Balances Defense Contract Visibility And P/E Multiple Risk

Analysts have lifted ATI's implied fair value from $191.00 to about $206.54, reflecting updated views on revenue growth, profit margins, and future P/E assumptions that underpin the recent wave of higher price targets from several firms. Analyst Commentary Recent Street research on ATI points to a firm stretch of optimism, with several bullish analysts lifting price targets and reinforcing positive views on the stock's execution and longer term earnings power.
LMT
US$493.60
Lockheed Martin
7D
-6.9%
1Y
4.5%
Analysis Article • Jun 21

Lockheed Martin (LMT) Stock Could Be 24.2% Undervalued After US Iran Peace Deal

The interim peace agreement between the U.S. and Iran has reduced conflict risk, and Lockheed Martin (LMT) is feeling the impact, with defense stocks facing a broad reset in expectations for new weapons demand. See our latest analysis for Lockheed Martin. Lockheed Martin’s share price has come under pressure, with a 1-day share price return showing a 4.01% decline and a 90-day share price return showing a 17.09% decline. However, the 1-year total shareholder return of 11.51% and 5-year total...
HONA.V
US$261.03
Honeywell Aerospace
7D
30.5%
1Y
n/a
NOC
US$507.33
Northrop Grumman
7D
-6.9%
1Y
1.5%
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...
BA
US$220.83
Boeing
7D
-3.5%
1Y
9.7%
Analysis Article • Jun 19

Boeing (BA) Stock Could Be 18% Undervalued on Backlog Driven Growth Narrative

Boeing (BA) stock has drawn fresh attention after recent trading left it at a last close of US$222.72. This gives the company a market value of about US$177.9b and puts recent returns into sharper focus for investors. See our latest analysis for Boeing. Recent trading has been choppy for Boeing, with the share price slipping 1.29% over the last day but still sitting on a 14.15% 3 month share price return and a 12.67% 1 year total shareholder return, which may indicate that momentum has picked...
GD
US$343.36
General Dynamics
7D
-4.5%
1Y
21.6%
WWD
US$426.82
Woodward
7D
6.0%
1Y
76.6%
Narrative Update • Jun 18

WWD: Rich Stock Price Will Depend On Commercial Aerospace Backlogs Holding Up

The analyst price target for Woodward stock has been revised slightly higher to $391.90 from $391.26 as analysts factor in updated assumptions around the discount rate, revenue growth, profit margin and future P/E, following recent positive coverage and price target increases from several firms. Analyst Commentary Recent research coverage of Woodward highlights a generally constructive stance on the company, with several firms initiating with positive views and issuing higher price targets.
GE
US$355.12
General Electric
7D
3.8%
1Y
43.3%
CRS
US$587.77
Carpenter Technology
7D
4.3%
1Y
124.9%
LHX
US$285.83
L3Harris Technologies
7D
-6.0%
1Y
13.8%
BWXT
US$210.00
BWX Technologies
7D
8.3%
1Y
47.8%
AXON
US$410.03
Axon Enterprise
7D
-7.5%
1Y
-47.6%
Narrative Update • Jun 15

AXON: AI And Public Safety Platform Expansion Will Support Long Term Upside

Axon Enterprise's analyst price target has been reduced by $100 to $825, as analysts incorporate higher discount rates and a lower future P/E multiple, while still reflecting updated assumptions for revenue growth and profit margins. Analyst Commentary Recent Street research on Axon Enterprise has focused on recalibrating price targets, with several firms revising their assumptions around discount rates and future P/E multiples.
ARXS
US$46.06
Arxis
7D
12.4%
1Y
n/a