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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 03, 2026
DataAggregated Company Financials
Companies99
  • 7D5.2%
  • 3M10.1%
  • 1Y31.7%
  • YTD11.0%

The Aerospace & Defense industry is up 5.2% in the last week, with RTX up 6.8%. During this same period, the ATI underperformed, falling 5.7%. This means that the industry has gained 32% over the past year. 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
Fri, 03 Jul 2026US$1.8tUS$530.6bUS$37.1b40.2x47.7x3.3x
Sun, 31 May 2026US$1.7tUS$529.6bUS$37.1b40.2x46.5x3.3x
Tue, 28 Apr 2026US$1.6tUS$521.3bUS$37.1b36x42x3x
Thu, 26 Mar 2026US$1.6tUS$511.7bUS$36.4b37.9x43.8x3.1x
Sat, 21 Feb 2026US$1.7tUS$510.3bUS$35.6b43.7x48.9x3.4x
Mon, 19 Jan 2026US$1.5tUS$410.1bUS$32.0b42.6x48x3.7x
Wed, 17 Dec 2025US$1.3tUS$409.8bUS$32.0b37.4x41.4x3.2x
Fri, 14 Nov 2025US$1.3tUS$409.2bUS$32.2b38.7x41.2x3.2x
Sun, 12 Oct 2025US$1.3tUS$398.7bUS$31.3b38.9x41.4x3.3x
Tue, 09 Sep 2025US$1.2tUS$395.4bUS$31.1b34.1x39.2x3.1x
Thu, 07 Aug 2025US$1.2tUS$393.5bUS$31.1b35.4x38.9x3.1x
Sat, 05 Jul 2025US$1.1tUS$387.1bUS$29.9b35.9x38.2x2.9x
Mon, 02 Jun 2025US$1.1tUS$386.8bUS$30.0b33.7x36.1x2.8x
Wed, 30 Apr 2025US$945.9bUS$381.1bUS$28.8b31.7x32.8x2.5x
Fri, 28 Mar 2025US$954.3bUS$377.3bUS$28.9b31x33.1x2.5x
Sun, 23 Feb 2025US$899.1bUS$376.2bUS$30.0b32.9x30x2.4x
Tue, 21 Jan 2025US$924.0bUS$403.9bUS$27.9b34.3x33.1x2.3x
Thu, 19 Dec 2024US$895.7bUS$403.7bUS$27.9b32.8x32.1x2.2x
Sat, 16 Nov 2024US$937.3bUS$403.6bUS$27.8b33.4x33.7x2.3x
Mon, 14 Oct 2024US$956.8bUS$393.7bUS$23.6b33.8x40.5x2.4x
Wed, 11 Sep 2024US$884.6bUS$388.8bUS$23.3b33x38x2.3x
Fri, 09 Aug 2024US$841.6bUS$388.3bUS$23.2b32.4x36.3x2.2x
Sun, 07 Jul 2024US$789.0bUS$381.1bUS$24.0b34.3x32.8x2.1x
Tue, 04 Jun 2024US$817.3bUS$381.1bUS$23.9b31.3x34.3x2.1x
Thu, 02 May 2024US$791.4bUS$380.0bUS$23.5b28.7x33.6x2.1x
Sat, 30 Mar 2024US$605.7bUS$303.9bUS$18.8b32.4x32.1x2x
Mon, 26 Feb 2024US$575.5bUS$303.1bUS$18.6b30.7x31x1.9x
Wed, 24 Jan 2024US$578.3bUS$303.9bUS$20.9b29.4x27.6x1.9x
Fri, 22 Dec 2023US$565.4bUS$302.0bUS$20.9b28x27.1x1.9x
Sun, 19 Nov 2023US$553.0bUS$301.5bUS$20.7b27.9x26.7x1.8x
Tue, 17 Oct 2023US$543.1bUS$301.2bUS$22.4b26.4x24.2x1.8x
Thu, 14 Sep 2023US$527.0bUS$305.9bUS$22.9b25x23.1x1.7x
Sat, 12 Aug 2023US$561.7bUS$305.7bUS$22.8b25.9x24.7x1.8x
Mon, 10 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 47.7x 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 Market1.38%
Industrials-1.75%
Aerospace & Defense5.18%
Aerospace and Defense5.18%
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$199.256.8%
+US$17.0b		36.7%PE37x
AXON Axon EnterpriseUS$597.0434.2%
+US$12.3b		-24.9%PE233.6x
RKLB Rocket LabUS$100.4624.5%
+US$11.4b		181.7%PS85.6x
LMT Lockheed MartinUS$545.918.1%
+US$9.4b		18.0%PE26.3x
HONA Honeywell AerospaceUS$247.1511.8%
+US$8.3b		n/aPE30.8x

Latest News

RKLB
US$100.46
Rocket Lab
7D
24.5%
1Y
181.7%
ATRO
US$70.83
Astronics
7D
-18.7%
1Y
160.5%
BA
US$226.49
Boeing
7D
3.8%
1Y
4.9%
BWXT
US$191.06
BWX Technologies
7D
-6.7%
1Y
33.7%
Seeking Alpha • Jul 02

BWX Technologies: Even A Q2 Beat And Raise Is Not Enough

Summary BWX Technologies continues to deliver robust results, driven by strong government contracts and surging commercial demand, but valuation remains stretched. Q2 is expected to show another revenue beat, with commercial operations benefiting from Kinectrics acquisition and organic growth, though margin pressure looms longer term. BWXT trades at a significant premium to peers, with a forward earnings multiple of 40.1x and a free cash flow yield of just 1.8%, limiting margin of safety. I maintain a Hold rating, awaiting either margin expansion or a more attractive entry point as the current valuation fully reflects positive fundamentals. Read the full article on Seeking Alpha
LMT
US$545.91
Lockheed Martin
7D
8.1%
1Y
18.0%
Seeking Alpha • Jul 02

Lockheed Martin: A Great Entry Point In The Defence Industry (Rating Upgrade)

Summary Lockheed Martin is upgraded to Buy as shares retrace to ~$500, offering a more attractive entry after a 20% pullback. Recent $43B+ in new missile and munitions contracts, including sole-source Sentinel A4 and THAAD awards, signal a tangible supply ramp and backlog-to-revenue conversion. LMT's valuation is now compelling, trading at 16.9x forward earnings and a ~5.7% FCF yield, near historical averages and at a discount to peers. Key risks remain: persistent margin pressure from fixed-price contracts and uncertainty around Congressional approval for the $1.5T defense budget and Golden Dome initiative. Read the full article on Seeking Alpha
CW
US$760.23
Curtiss-Wright
7D
-1.0%
1Y
55.8%
Narrative Update • Jul 02

CW: Defense Strength And Growth Index Shift Will Support Steady Returns

Analysts have modestly raised their Curtiss-Wright price target to about $791 from roughly $711, citing updated assumptions for fair value, discount rate, revenue growth, profit margins, and future P/E as key drivers behind the change. What’s in the News for Curtiss-Wright Curtiss-Wright reported Q1 2026 sales growth of 13% year over year, with performance led by its aerospace and defense operations, especially ground and naval defense, and earnings ahead of sell-side revenue expectations.
HONA
US$247.15
Honeywell Aerospace
7D
11.8%
1Y
n/a
CRS
US$597.24
Carpenter Technology
7D
-0.3%
1Y
113.6%
HWM
US$270.41
Howmet Aerospace
7D
-1.0%
1Y
49.3%
AXON
US$597.04
Axon Enterprise
7D
34.2%
1Y
-24.9%
RTX
US$199.25
RTX
7D
6.8%
1Y
36.7%
WWD
US$418.02
Woodward
7D
-4.2%
1Y
65.7%
FTAI
US$248.06
FTAI Aviation
7D
-4.6%
1Y
115.8%
ATI
US$188.10
ATI
7D
-5.7%
1Y
116.6%
GD
US$373.54
General Dynamics
7D
8.4%
1Y
26.7%
NOC
US$549.01
Northrop Grumman
7D
9.9%
1Y
8.9%
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...