In this article, we will look at the 11 Best Aerospace Stocks to Buy According to Analysts.
On October 20, David Dietze, Chief Investment Strategist at Dietze Wealth Management Group, appeared on Schwab Network to discuss his outlook on the Aerospace and Defense sector. He noted that he remains generally positive on the sector. Dietze added that he anticipates revenue growth for defense companies in high single digits. However, profit margins are expected to remain down year-over-year, mainly due to the tariffs and supply chain issues. As a result, earnings expectations for some stocks are slightly muted. However, investors remain bullish on the sector overall, taking confidence from the year-to-date gains.
While talking about his top picks within the sector, Dietze noted that for investors looking for value, he suggests Lockheed Martin. Dietze noted that while the stock has been relatively flat year-to-date, it trades at a significant discount to the S&P 500 and its peers. Moreover, the company also has a strong use case for the United States administration, mainly due to its F-35 fighter jets.
For investors looking to diversify, Dietze suggested Raytheon Technologies. He added that the company offers a healthy mix of commercial aerospace and defense business. Moreover, the company has also been in the spotlight due to its Tomahawk missiles. Dietze likes Raytheon as a more expensive yet high-quality diversified stock in the sector.
Now that we have looked at the top picks of David Dietze, let’s move to the 11 Best Aerospace Stocks to Buy According to Analysts.
Our Methodology
To compile the list of 11 Best Aerospace Stocks to Buy According to Analysts, we used the Finviz stock screener, CNN, and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of Aerospace and Defense stocks with more than 25% upside potential. After sorting the list by market capitalization, we cross-checked the upside potential from CNN and ranked the stock in ascending order of this metric. We have also added the hedge fund sentiment around each stock sourced from Insider Monkey’s database. Please note that the data was recorded on December 9, 2025.
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).
11 Best Aerospace Stocks to Buy According to Analysts
11. BWX Technologies, Inc. (NYSE:BWXT)
Number of Hedge Fund Holders: 54
Analyst Upside Potential: 25.87%
BWX Technologies, Inc. (NYSE:BWXT) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 2, BWX Technologies, Inc. (NYSE:BWXT) announced the arrival of TRISO nuclear fuel for the Project Pele microreactor in collaboration with Idaho National Laboratory, the U.S. Army, and the Department of War’s Strategic Capabilities Office.
Management noted that Project Pele aims to design, build, and test a 1.5-megawatt transportable microreactor, which is classified as a Generation IV high-temperature gas-cooled reactor. Notably, the system is compact and can be fit into four standard shipping containers, thereby making it mobile and deployable. The TRISO nuclear fuel consists of uranium oxycarbide kernels coated with multiple protective ceramic layers, including silicon carbide, which can withstand extreme heat and radiation.
BWX Technologies, Inc. (NYSE:BWXT) shipped the TRISO fuel to the Idaho National Laboratory, where the prototype will be tested. Management noted that they plan to begin formal testing by 2027.
That said, BWX Technologies, Inc. (NYSE:BWXT) earlier on December 2 announced expanding its service offering to Owner’s Engineer services at Bulgaria’s New Build Kozloduy Nuclear Power Plant. The consortium includes Laurentis Energy Partners and Canadian Nuclear Partners S.A. Management noted that the project is around 10 years long, with the first AP1000 unit expected to start electricity production by 2035.
BWX Technologies, Inc. (NYSE:BWXT) manufactures commercial nuclear steam generators, fuel and handling systems, pressure vessels, reactor components, and storage containers for nuclear fuel and waste, operating in the US, Canada, and internationally.
10. Rocket Lab Corporation (NASDAQ:RKLB)
Number of Hedge Fund Holders: 34
Analyst Upside Potential: 26.07%
Rocket Lab Corporation (NASDAQ:RKLB) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 8, Rocket Lab Corporation (NASDAQ:RKLB) announced that its Neutron launch vehicle’s innovative “Hungry Hippo” captive fairing successfully passed the qualification testing.
Neutron is Rocket Lab Corporation’s (NASDAQ:RKLB) largest carbon composite rocket, which has the capacity to lift up to 13,000 kg. The rocket is planned to make its first flight in 2026 and represents one of the fastest developments of a commercial rocket. “Hungry Hippo” captive fairing is a fairing design for Neutron, which remains attached to the rocket’s first stage throughout launch and landing, enabling it to be reused.
Management noted the qualification testing included several tests, including but not limited to withstanding 275,000 pounds of force, quick opening and closing of fairing halves within 1.5 seconds, and integrated flight systems such as software and control hardware under realistic conditions. That said, Rocket Lab Corporation’s (NASDAQ:RKLB) now awaits the arrival of Hungry Hippo in Virginia, where the rocket will be assembled and undergo final pre-launch tests.
Wall Street remains bullish on the stock with analysts’ 12-month average price target of $65, reflecting 26% upside from the current level. On November 25, the stock was reiterated with a Buy rating and a $63 price target by Ryan Koontz of Needham. Moreover, earlier on November 19, Ronald Epstein from Bank of America Securities also reiterated a Buy rating on the stock and raised the price target from $50 to $60.
Rocket Lab Corporation (NASDAQ:RKLB) is an end-to-end space company with an established track record of delivering mission success. The stock is skyrocketing in 2025, with year-to-date returns of nearly 150%.
