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U.S. Aerospace & Defense Industry Analysis

UpdatedJul 01, 2026
DataAggregated Company Financials
Companies99
  • 7D2.5%
  • 3M6.3%
  • 1Y29.5%
  • YTD8.0%

Over the last 7 days, the Aerospace & Defense industry has risen 2.5%, driven by gains from General Electric of 4.8%. Meanwhile, Honeywell Aerospace actually underperformed within the industry, shrinking 9.8% in the last week. This means that the industry has gained 29% 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
Wed, 01 Jul 2026US$1.7tUS$530.6bUS$37.1b39.3x46.7x3.3x
Fri, 29 May 2026US$1.7tUS$529.5bUS$37.1b39.1x45.7x3.2x
Sun, 26 Apr 2026US$1.6tUS$520.9bUS$37.1b36x41.9x3x
Tue, 24 Mar 2026US$1.6tUS$511.5bUS$35.4b39.6x45x3.1x
Thu, 19 Feb 2026US$1.7tUS$510.3bUS$35.6b42.7x47.9x3.3x
Sat, 17 Jan 2026US$1.5tUS$410.1bUS$32.0b42.6x47.5x3.7x
Mon, 15 Dec 2025US$1.3tUS$409.8bUS$32.0b38.7x41.3x3.2x
Wed, 12 Nov 2025US$1.3tUS$409.2bUS$32.2b38.9x41.6x3.3x
Fri, 10 Oct 2025US$1.4tUS$398.7bUS$31.4b39.2x43.1x3.4x
Sun, 07 Sep 2025US$1.2tUS$395.4bUS$31.1b34.3x39.2x3.1x
Tue, 05 Aug 2025US$1.2tUS$393.1bUS$31.4b36.3x37.9x3x
Thu, 03 Jul 2025US$1.1tUS$387.1bUS$29.9b35.1x37.9x2.9x
Sat, 31 May 2025US$1.1tUS$386.8bUS$30.0b33.7x35.8x2.8x
Mon, 28 Apr 2025US$941.2bUS$381.1bUS$28.8b31.5x32.6x2.5x
Wed, 26 Mar 2025US$956.6bUS$377.2bUS$28.9b33.3x33.1x2.5x
Fri, 21 Feb 2025US$924.5bUS$376.2bUS$30.0b34.2x30.8x2.5x
Sun, 19 Jan 2025US$924.0bUS$403.9bUS$27.9b34.3x33.1x2.3x
Tue, 17 Dec 2024US$898.2bUS$403.7bUS$27.9b35x32.1x2.2x
Thu, 14 Nov 2024US$966.7bUS$403.4bUS$27.9b35.9x34.6x2.4x
Sat, 12 Oct 2024US$944.2bUS$393.7bUS$23.6b33.8x40x2.4x
Mon, 09 Sep 2024US$865.8bUS$388.8bUS$23.3b32.8x37.2x2.2x
Wed, 07 Aug 2024US$832.7bUS$387.9bUS$23.1b31.5x36.1x2.1x
Fri, 05 Jul 2024US$795.1bUS$381.1bUS$24.0b34.5x33.1x2.1x
Sun, 02 Jun 2024US$817.3bUS$381.1bUS$23.9b31.5x34.3x2.1x
Tue, 30 Apr 2024US$789.4bUS$379.7bUS$23.5b31.4x33.6x2.1x
Thu, 28 Mar 2024US$605.7bUS$303.9bUS$18.8b32.4x32.1x2x
Sat, 24 Feb 2024US$575.5bUS$303.1bUS$18.6b30.7x31x1.9x
Mon, 22 Jan 2024US$577.3bUS$302.1bUS$20.9b29.2x27.6x1.9x
Wed, 20 Dec 2023US$574.7bUS$302.0bUS$20.9b28.4x27.5x1.9x
Fri, 17 Nov 2023US$552.9bUS$301.5bUS$20.7b28.5x26.7x1.8x
Sun, 15 Oct 2023US$540.6bUS$301.2bUS$22.4b25.6x24.1x1.8x
Tue, 12 Sep 2023US$528.5bUS$305.9bUS$22.9b24.8x23.1x1.7x
Thu, 10 Aug 2023US$562.8bUS$305.7bUS$22.8b25.9x24.7x1.8x
Sat, 08 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 Market1.92%
Industrials2.63%
Aerospace & Defense2.54%
Aerospace and Defense2.54%
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
GE General ElectricUS$373.734.8%
+US$18.0b		50.1%PE45.5x
AXON Axon EnterpriseUS$560.6129.5%
+US$10.3b		-27.7%PE219.4x
RTX RTXUS$189.731.8%
+US$4.5b		31.6%PE35.2x
RKLB Rocket LabUS$101.656.9%
+US$3.8b		196.1%PS86.6x
HEI HEICOUS$356.196.6%
+US$3.1b		10.8%PE63x

Latest News

RTX
US$189.73
RTX
7D
1.8%
1Y
31.6%
AXON
US$560.61
Axon Enterprise
7D
29.5%
1Y
-27.7%
WWD
US$425.44
Woodward
7D
-1.7%
1Y
71.0%
BWXT
US$194.65
BWX Technologies
7D
-7.3%
1Y
38.7%
RKLB
US$101.65
Rocket Lab
7D
6.9%
1Y
196.1%
GE
US$373.73
General Electric
7D
4.8%
1Y
50.1%
Seeking Alpha • 17h

The Great Disconnect: Why GE Aerospace's Defense Fundamentals Don't Justify A $369 Price Tag

Summary GE Aerospace is indispensable in defense propulsion but trades at an unreasonable premium disconnected from operational fundamentals. Despite strong defense cash flows, 75% of GE's revenue is exposed to commercial aviation, facing production bottlenecks and margin pressures. DCF, relative, and DDM models indicate a 41%–70% downside to fair value, with DCF fair value at $142.61 versus a $369 market price. Read the full article on Seeking Alpha
DRS
US$42.67
Leonardo DRS
7D
-6.7%
1Y
-5.4%
LHX
US$290.59
L3Harris Technologies
7D
-1.1%
1Y
15.2%
LMT
US$509.46
Lockheed Martin
7D
1.1%
1Y
9.3%
HWM
US$268.86
Howmet Aerospace
7D
-2.3%
1Y
52.6%
CRS
US$616.84
Carpenter Technology
7D
6.7%
1Y
127.0%
YSS
US$24.62
York Space Systems
7D
-13.8%
1Y
n/a
HEI
US$356.19
HEICO
7D
6.6%
1Y
10.8%
TDG
US$1,332.04
TransDigm Group
7D
2.6%
1Y
-11.9%
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$221.08
Honeywell Aerospace
7D
-9.8%
1Y
n/a
NOC
US$509.31
Northrop Grumman
7D
-0.8%
1Y
1.1%
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...