In this article, we will look at the 10 Best Aerospace and Defense Stocks to Invest In Right Now.
On January 24, Tony Bancroft, Portfolio Manager at Gabelli Funds, appeared in an interview with Yahoo Finance to discuss the outlook for aerospace and defense stocks in 2026. He noted that most companies in the Gabelli Funds Commercial Aerospace and Defense ETF performed well in 2025, with GE Aerospace and RTX Corp taking the lead, gaining 87% and 59.6%, respectively, in 2025. Bancroft highlighted that the performance is expected to continue in 2026, driven by the escalated geopolitical tensions and increased defense budgets around the world.
While discussing the impact of AI in the sector, Bancroft noted that the sector has been using AI since the introduction of the autopilot system in the 90s. He added that with companies like Palantir and other software giants, the defense sector is adopting autonomous and self-guided technologies, which protect human resources in combat. Bancroft likes defense companies that are active participants in AI innovation.
With that let’s take a look at the 10 Best Aerospace and Defense Stocks to Invest In Right Now.
Our Methodology
We used screeners to identify Aerospace and Defense stocks, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Aerospace and Defense Stocks to Invest In Right Now
10. GE Aerospace (NYSE:GE)
GE Aerospace (NYSE:GE) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 16, GE Aerospace (NYSE:GE) announced a major deal with United Airlines, highlighting that the airline selected 300 GEnx engines for its new Boeing 787 Dreamliners.
The order includes extra spare engines, which will bring United Airlines’ 787 fleet to over 200 GEnx-powered aircraft. Management noted that this latest deal brings GE Aerospace’s firm GEnx future deliveries to nearly 1,800 engines plus spares. Moreover, the partnership between GE Aerospace (NYSE:GE) and United Airlines dates back to 1968, and the airline has a huge fleet operating on GE and CFM engines. For reference, CFM engines are a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines.
Management highlighted that these engines use advanced materials for increased durability and longer time between overhauls. The engines have a dispatch rate of 99.98% and have recorded more than 70 million flight hours.
GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 25,000 military and 45,000 commercial aircraft engines.
9. RTX Corporation (NYSE:RTX)
RTX Corporation (NYSE:RTX) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 20, RTX Corporation (NYSE:RTX) announced complete approval of the StormBreaker smart weapon by the US Navy. The approval marks StormBreaker ready to use on the F/A-18E/F Super Hornet fighter jet.
Management noted that the StormBreaker is a precision-guided bomb that has the ability to hit moving and stationary objects, in good or bad weather conditions. The weapon is of a small size and allows the Super Hornet to carry more weapons with it. Moreover, the weapon also has the ability to fly autonomously to mobile targets, keeping pilots out of danger longer.
Sam Deneke, who is Raytheon’s Air & Space Defense Systems president, noted that the weapon system enhances the combat ability of the Super Hornet with its all-weather accuracy. StormBreaker was initially used in 2023 on the Super Hornet and is now being integrated on the F-35A/B/C.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
