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.
8. The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 19, The Boeing Company (NYSE:BA) announced that its 777-9 flight training simulators received qualification certificates from the US Federal Aviation Administration and European Union Aviation Safety Agency. This brings the simulators a step closer to approved pilot training as the certification grants initial qualification.
Management noted that the 777-9 flight simulator isn’t just a basic trainer; it is a full-flight simulator with devices that are similar to 777-9’s systems, real-life flight physics, and real-world conditions. Such simulators offer hands-on training for pilots to practice real-world flight experience from take-off to emergencies.
The Boeing Company (NYSE:BA) also highlighted that the qualification is a result of its joint effort with the device manufacturer CAE. Chris Broom, vice president, Commercial Training Solutions, Boeing Global Services, noted:
”The qualification of these training devices underscores our commitment to delivering high-quality training solutions that meet the needs of global airline customers and regulators.”
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in more than 150 countries.
7. Lockheed Martin Corporation (NYSE:LMT)
Lockheed Martin Corporation (NYSE:LMT) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 18, Lockheed Martin Corporation (NYSE:LMT) announced securing a major foreign military sale contract through Wright-Patterson Air Force Base. The contract entails delivering C-130J training devices and upgrades to the Royal Australian Air Force (RAAF). The deliveries for this contract are expected to start in 2029.
The equipment to be delivered under the contract includes two weapon systems trainers, including full-mission simulators for pilots and the crew, an Enhanced Integrated Cockpit Systems Trainer, and upgrades to the existing Virtual Simulation and Virtual Maintenance Trainers of the RAAF.
The report noted that RAAF is a leader in C‑130 operations. In 2022, the US approved the sale of 24 additional C‑130J‑30 airlifters. In 2023, Australia used the approval to acquire 20 new C‑130J‑30 aircraft, with the first aircraft to be delivered in 2028.
Lockheed Martin Corporation (NYSE:LMT) is one of the world’s largest defense contractors. It specializes in the research, design, and development of advanced technology systems, products, and services.
6. Howmet Aerospace Inc. (NYSE:HWM)
Howmet Aerospace Inc. (NYSE:HWM) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. Howmet Aerospace Inc. (NYSE:HWM) released its fiscal Q4 2025 earnings on February 12. The company grew its quarterly revenue by 14.65% year-over-year to $2.17 billion and topped expectations by $42.67 million. The EPS of $1.05 also surpassed the consensus by $0.08.
Management noted that the last quarter of 2025 experienced robust growth driven by stronger end markets. The performance was driven by a 13% year-over-year growth in Commercial aerospace revenue and a 20% year-over-year growth in Defense aerospace revenue.
For the full-year, Howmet Aerospace Inc. (NYSE:HWM) delivered 11% year-over-year revenue growth, taking its revenue to $8.3 billion. Management noted the growth was driven by a 12% increase in the Commercial aerospace segment during the year.
Looking ahead, management expects FQ1 2026 revenue in the range of $2.22 billion – $2.24 billion, along with an adjusted EBITDA in the range of $680 million – $690 million.
Howmet Aerospace Inc. (NYSE:HWM) manufactures advanced engineered components for the aerospace, defense, and commercial transportation industries, specializing in jet-engine parts (airfoils, rings, disks), aerospace fasteners, titanium structures, and forged aluminum wheels for heavy trucks, enabling lighter, more fuel-efficient, and higher-performance systems.
5. L3Harris Technologies, Inc. (NYSE:LHX)
L3Harris Technologies, Inc. (NYSE:LHX) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 18, L3Harris Technologies, Inc. (NYSE:LHX) announced landing its biggest ever full-rate production contract for submarine communication systems.
As part of this contract, the company will supply 26 shipsets to General Dynamics Electric Boat. These shipsets will go to Virginia and Columbia-class submarines. Moreover, the follow-on contacts include continued production for both classes till 2033, with options to extend to more Columbia-class boats and even allied navies abroad.
Nino DiCosmo, President, Maritime, Space and Mission Systems, L3Harris, noted:
“The ability for submarines to operate undetected is vital to the U.S. Navy’s strategic advantage.”
Earlier, on February 16, L3Harris Technologies, Inc. (NYSE:LHX) secured a new contract from the Missile Defense Agency worth around $400 million. The contract entails producing additional solid rocket boost motors and Liquid Divert and Attitude Control Systems.
L3Harris Technologies, Inc. (NYSE:LHX) is a major supplier for MDA’s Terminal High Altitude Area Defense, which is a short to medium-range ballistic missile interceptor with the ability to protect from inside and outside the Earth’s atmosphere.
The Solid Rocket Boost motors are critical to power the initial launch and boost phase of the THAAD interceptor missile. On the other hand, Liquid Divert and Attitude Control Systems steer the missile’s “kill vehicle” precisely during the final intercept stages, ensuring it hits the target.
Moreover, THAAD has shown a 100% success rate in intercept tests and is paramount for national security. The contract increases L3Harris Technologies’ pace & Airborne Systems segment backlog, which stood at more than $38.7 billion in 2025.
L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions that connect the air, land, space, sea, and cyber domains for national security.
4. HEICO Corporation (NYSE:HEI)
HEICO Corporation (NYSE:HEI) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 5, HEICO Corporation (NYSE:HEI) announced that its subsidiary Wencor Group acquired EthosEnergy Accessories and Components.
Management believes that this deal will enhance the company’s position in repairing engine parts for aviation and industrial uses within a year. EthosEnergy Accessories and Components was founded in 1979 and specializes in repairing engine accessories and components for aeroderivative gas turbines, aerospace, and defense markets. The strategic acquisition enhances Wencor Group’s expertise in the growing aeroderivative gas turbine sector, driven by rising global energy demand.
HEICO Corporation (NYSE:HEI) is expected to release its fiscal Q1 2026 earnings on February 25. Wall Street expects the company to post revenue around $1.17 billion, along with a GAAP EPS of $1.28.
HEICO Corporation (NYSE:HEI) designs, manufactures, repairs, and distributes specialized products and services for niche segments in aviation, defense, space, medical, telecommunications, and electronics industries.
3. Rocket Lab Corporation (NASDAQ:RKLB)
Rocket Lab Corporation (NASDAQ:RKLB) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. Rocket Lab Corporation (NASDAQ:RKLB) is expected to release its fiscal Q4 2025 earnings on February 26. Wall Street anticipates the company to post revenue around $178.18 million, along with a GAAP EPS of negative $0.10.
Management during the fiscal Q3 2025 earnings noted they expect Q4 2025 revenue between $170 million and $180 million. The GAAP gross margins are expected to be between 37% and 39%. The Street also has a positive opinion on the stock, with analysts’ 12-month price target reflecting 12.90% upside from the current level. Moreover, 68% of the 19 analysts covering the stock have maintained a Buy rating.
Earlier, on February 12, Rocket Lab Corporation (NASDAQ:RKLB) announced that it is ready to launch its next dedicated mission for the Defense Innovation Unit on its HASTE rocket.
The mission is called Cassowary Vex, with a launch name “That’s Not A Knife”, which will deploy DART AE, a scramjet-powered aircraft from Australian firm Hypersonix. The launch is expected in late February from Rocket Lab’s Launch Complex 2 on Wallops Island, Virginia.
Management noted that HASTE rocket is their suborbital variant of its Electron rocket, which has been customized for hypersonic tests with up to 700 kg payload capacity and speeds to Mach 20. The launch will mark the fourth such mission in under six months.
Rocket Lab Corporation (NASDAQ:RKLB) is a leading California-based end-to-end space company that develops rocket launch and control systems for the space and defense industries. The company was founded in 2006.
2. Elbit Systems Ltd. (NASDAQ:ESLT)
Elbit Systems Ltd. (NASDAQ:ESLT) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 18, Elbit Systems Ltd. (NASDAQ:ESLT) announced securing $277 million in contracts from an unnamed international customer. Management noted that the deal includes the supply of 30mm turrets, the UT30MK2 model, and related munitions for over 3 years.
UT30MK2 Turret is a turret designed for armored personnel carrier vehicles and is versatile and low profile. The Turret comes with manned and unmanned turret modes and enhances the firepower of armored personnel carriers. It can also be customized to integrate missiles, advanced sights, and other weapons seamlessly.
Moreover, the weapon loadout includes a 30mm main gun for punching through armor, a 7.62mm coaxial machine gun for close-range fire, and anti-tank guided missiles for long-range threats.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, noted:
“We are proud to be selected once again by a valued international customer. These contracts reflect the customer’s confidence in our advanced land systems and munitions technologies and further demonstrate our ability to deliver high–performance, operational solutions to armed forces worldwide.”
Elbit Systems Ltd. (NASDAQ:ESLT) is an Israel-based defense technology company, offering a comprehensive range of military drones, from the man-portable Skylark LEX to the multi-mission Hermes-900. According to reports, Elbit’s SkyStriker was among the drones used by the Indian military against Pakistan in the recent conflict.
1. Curtiss-Wright Corporation (NYSE:CW)
Curtiss-Wright Corporation (NYSE:CW) is one of the Best Aerospace and Defense Stocks to Invest In Right Now. On February 11, Curtiss-Wright Corporation (NYSE:CW) reported fiscal Q4 2025 earnings. The company grew its revenue by 14.88% year-over-year to reach $946.98 million and topped the estimates by $56.77 million. Moreover, the EPS of $3.79 also topped consensus by $0.10.
The quarterly performance was driven by strong growth across the board. The Aerospace & Industrial segment grew 5% year-over-year, the Defense Electronics segment grew 17%, and the Naval and Power segment grew 21% during the same time.
Management noted that the company reached record sales of $3.5 billion in fiscal 2025, reflecting 12% year-over-year growth. Notably, the operating income came in at $634 million, with an operating margin of 18.1%. Looking ahead, Curtiss-Wright Corporation (NYSE:CW) expects 6% to 8% organic growth in 2026, based on the robust backlog and trends in A&D/nuclear.
Following the release, recently on February 17, Scott Deuschle from Deutsche Bank reiterated a Buy rating on the stock and raised the price target from $640 to $748. Earlier, on February 13, John Godyn from Citi maintained a Hold rating on the stock and raised the price target from $661 to $718.
Curtiss-Wright Corporation (NYSE:CW) provides engineered products, solutions, and services for the aerospace and defense markets.
While we acknowledge the potential of CW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CW and that has 100x upside potential, check out our report about this cheapest AI stock.
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