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%.
9. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 36
Analyst Upside Potential: 28.62%
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 5, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) opened a new 10,000 square foot facility dedicated to PT6A and PT6T engine overhaul in British Columbia.
Management noted that the size of the facility is designed specifically to handle the maintenance, repair, and overhaul of PT6A and PT6T engines. Both of these engines are popular turboprop and turboshaft models widely used in aviation. Moreover, this new facility will also allow the company to expand capabilities and improve services for its Canadian operations.
Earlier on December 1, Mike Crawford from B. Riley Securities upgraded Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) from Hold to Buy with a price target of $105. The analyst noted that the company offers a better risk/reward profile, mainly due to its proprietary IP that enables an array of affordable solutions. The analyst also highlighted the company’s strengths in affordable and resilient C5ISR, hypersonics, and autonomy systems that can enable it to beat expectations.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops advanced technology, products, and systems for defense, national security, and commercial markets. It operates two main segments, including the Government Solutions and Unmanned Systems.
8. Intuitive Machines, Inc. (NASDAQ:LUNR)
Number of Hedge Fund Holders: 25
Analyst Upside Potential: 37.58%
Intuitive Machines, Inc. (NASDAQ:LUNR) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 3, Cantor Fitzgerald reiterated its Buy rating on the stock with a price target of $16. The positive rating comes as the share price of Intuitive Machines, Inc. (NASDAQ:LUNR) has surged more than 25% over the past 5 days.
The firm noted the company’s latest acquisition of Lanteris, which is expected to close during Q1 2026. The firm sees this as a positive sign for the company. Moreover, Cantor Fitzgerald anticipates Intuitive Machines, Inc. (NASDAQ:LUNR) to generate more than $850 million in annual revenue, along with a positive adjusted EBITDA.
The acquisition of Lanteris Space Systems was announced on November 4. Lanteris is a spacecraft manufacturer with a proven track record of delivering high-quality spacecraft for national security, civil, and commercial customers. Management noted that this strategic acquisition will result in $920 million in backlog and mark a significant step for the company as it becomes a multi-domain space prime. The deal was valued at $800 million, consisting of $450 million in cash and $350 million in Intuitive Machines Class A common stock.
Intuitive Machines, Inc. (NASDAQ:LUNR) rallied alongside its counterparts, namely Rocket Lab Corp., AST SpaceMobile, and Virgin Galactic, among others, following the news.
7. Loar Holdings Inc. (NYSE:LOAR)
Number of Hedge Fund Holders: 29
Analyst Upside Potential: 37.86%
Loar Holdings Inc. (NYSE:LOAR) is one of the Best Aerospace Stocks to Buy According to Analysts. Wall Street is bullish on Loar Holdings Inc. (NYSE:LOAR) despite a 7.63% drop in share price since its fiscal Q3 2025 earnings release on November 12.
Recently, on December 5, Sheila Kahyaoglu from Jefferies maintained a Buy rating on the stock with a price target of $90. Earlier on November 25, Noah Poponak from Goldman Sachs had also initiated the stock with a Buy rating and an associated price target of $91. Overall, analysts’ 12-month average price target reflects more than 37% upside from the current level.
The company topped expectations during Q3 2025. Loar Holdings Inc. (NYSE:LOAR) grew its revenue by 22.44% year-over-year to $126.75 million, surpassing estimates by $1.55 million. Moreover, the EPS of $0.35 also topped estimates by $0.14. Management noted that secular growth in commercial passenger traffic and a strong backlog at airframe manufacturers led the growth during the quarter.
Management also raised the full-year guidance and now expects net sales in the range of $487 million and $495 million, up from $486 million and $494 million. The net income guidance was also raised from $65 million and $70 million to $70 million and $75 million.
That said, Goldman Sachs noted in its research note that Loar Holdings Inc. (NYSE:LOAR) is a high-quality aerospace aftermarket merger and acquisition compounder, which is still in its early stages. The firm noted that despite being in the early stage, the company has an impressive financial profile among its peers.
Loar Holdings Inc. (NYSE:LOAR) designs and manufactures niche aerospace and defense components for aircraft and aerospace and defense systems.
6. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 37
Analyst Upside Potential: 41.61%
AeroVironment, Inc. (NASDAQ:AVAV) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 9, AeroVironment, Inc. (NASDAQ:AVAV) posted results from its fiscal Q2 2026. The stock price has fallen more than 3.88% since the release.
The company grew its revenue by 150.72% year-over-year to $472.51 million, surpassing estimates by $6.88 million. However, the EPS of $0.44 fell short of the expectations by $0.35. Management attributed revenue growth to BlueHalo, which contributed $245.1 million, and legacy revenue, which reached $227.4 million, reflecting 22% year-over-year growth. The gross margin rose in dollar terms from $73.6 million to $104.1 million, reflecting a 41% increase. However, it was reduced by $24.2 million of intangible amortization and related non-cash expenses tied to acquisitions, compared to just $3.7 million in the prior year quarter.
AeroVironment, Inc. (NASDAQ:AVAV) raised the lower end of its full-year revenue guidance and net loss range. Management now expects full-year revenue in the range of $1.95 billion to $2 billion, up from $1.9 billion and $2.0 billion. The net loss is expected to be between $38 million and $30 million, an improvement from the previous range of $77 million and $72 million. However, the guidance fell short of Wall Street expectations, with the midpoint of revenue falling short by $0.03 billion and EPS falling short by $0.14.
Earlier, on December 8, AeroVironment, Inc. (NASDAQ:AVAV) announced that it had been awarded a five-year Indefinite Delivery, Indefinite Quantity contract from the US Army Contracting Command. The contract is worth $874.26 million and entails supporting future foreign military sales. It allows allied and partner countries to flexibly order AeroVironment, Inc.’s (NASDAQ:AVAV) unmanned aerial systems and counter-UAS systems over the next five years.
Management noted that the contact entails a range of UAS systems spanning from Groups 1 to 3, and their counter-UAS systems. Moreover, the contract also includes training for users, initial spare parts, and logistical support.
AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robot systems, and loitering munition systems. The stock has returned over 81% so far this year.
5. Eve Holding, Inc. (NYSE:EVEX)
Number of Hedge Fund Holders: 20
Analyst Upside Potential: 44.63%
Eve Holding, Inc. (NYSE:EVEX) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 8, Cantor Fitzgerald reiterated a Buy rating on Eve Holding, Inc. (NYSE:EVEX) without disclosing any price targets. The rating follows the company’s announcement of a $1 billion deal with Beta Technologies to buy motors on December 2. The stock has surged more than 6.8% since the press release.
Cantor Fitzgerald noted that while this deal reinforces BETA’s aftermarket services, it will also benefit Eve Holding, Inc.’s (NYSE:EVEX) aircraft development. The motors will provide the company with high power-to-weight ratios, demonstrated reliability, and simplified motor architecture. CEO Johann Bordais noted,
“Their electric motor technology will play a critical role in powering our aircraft during cruise, supporting the maturity of our propulsion architecture as we progress toward entry into service.”
Eve Holding, Inc. (NYSE:EVEX) aims to test its first flights in the fourth quarter of 2025 or by the first quarter of 2026. The company is still in the pre-revenue stage; however, analysts are optimistic regarding its potential, with their 12-month average price target suggesting more than 44.3% upside from the current level.
Eve Holding, Inc. (NYSE:EVEX) develops urban air mobility (UAM) solutions, including the design and production of electric vertical take-off and landing (eVTOL) aircraft, a comprehensive global services and support network for eVTOLs, and air traffic management solutions for a UAM ecosystem.
4. HEICO Corporation (NYSE:HEI)
Number of Hedge Fund Holders: 69
Analyst Upside Potential: 46.35%
HEICO Corporation (NYSE:HEI) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 12, John Godyn from Citi initiated coverage of the stock with a Buy rating and $367 price target.
The rating comes as the company is set to release its fiscal Q4 2025 results on December 18. Wall Street expects the company to post $1.17 billion in revenue and $1.21 in GAAP EPS during the fiscal Q4 2025.
That said, HEICO Corporation (NYSE:HEI) topped Wall Street estimates during its fiscal Q3 2025. The company grew its revenue by 15.66% year-over-year to $1.15 billion, surpassing estimates by $32.45 million. Moreover, the EPS of $1.26 also topped the consensus by $0.12. Management attributed growth to continued momentum in its aerospace aftermarket business, as the Flight Support Group’s net sales increased 18% to a record $802.7 million.
In other news, on November 10, HEICO Corporation (NYSE:HEI) announced the acquisition of Axillon Aerospace’s Fuel Containment Business from affiliates of SK Capital Partners, LP. The stock has decreased more than 7.5% since the announcement, but remains up by 28.89% year-to-date. Management noted that they expect the acquisition to accelerate earnings upon successful closing. While the financial terms of the deal were not disclosed, management anticipates closing the deal by the first quarter of 2026.
HEICO Corporation (NYSE:HEI) provides aftermarket aircraft parts and electronics, mainly designing, manufacturing, and repairing FAA-approved jet engine and aircraft component replacement parts for commercial, business, and military operators.
3. Leonardo DRS, Inc. (NASDAQ:DRS)
Number of Hedge Fund Holders: 29
Analyst Upside Potential: 47.41%
Leonardo DRS, Inc. (NASDAQ:DRS) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 8, Leonardo DRS, Inc. (NASDAQ:DRS) announced signing a Memorandum of Intent with the Kingdom of Saudi Arabia’s Ministry of Defense to explore opportunities for MOD ground combat vehicles and dismounted forces.
The MOI follows the announcement of the United States of America’s Strategic Defense Agreement with Saudi Arabia. As part of this agreement, Leonardo DRS, Inc. (NASDAQ:DRS) will collaborate with the country in supporting its Vision 2030 defense modernization roadmap. The MOI includes establishing high-performance battle management systems to provide digital command-and-control tools, collaborating on providing advanced C6ISR solutions for units at the brigade level and below, and providing rugged vehicle computing hardware, Multi-Function Rugged Displays, among others.
In addition to this, Wall Street also remains bullish on the stock. Recently, on December 5, Austin Moeller from Canaccord Genuity reiterated a Buy rating on the stock with a $50 price target. Earlier on December 4, Michael Ciramoli from Truist Financial also reiterated a Buy rating on the stock without disclosing any price targets.
Leonardo DRS, Inc. (NASDAQ:DRS) designs, develops, and manufactures advanced defense technologies, including sensing, network computing, force protection, electric power, propulsion, and mission-critical systems for US national security and allies.
2. Archer Aviation Inc (NYSE:ACHR)
Number of Hedge Fund Holders: 37
Analyst Upside Potential: 50.99%
Archer Aviation Inc. (NYSE:ACHR) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 9, Archer Aviation Inc. (NYSE:ACHR) announced completing the first phase of transactions to acquire control of Hawthorne Airport.
This update follows a series of definitive agreements the company signed in November to acquire control of this one-of-a-kind airport. It is situated at a strategic location, less than three miles from LAX, and is also closest to three main attractions, including SoFi Stadium, The Forum, Intuit Dome, and Downtown L.A. Management noted that they plan to use the airport as its operational hub for its L.A. air taxi network. Moreover, Archer Aviation Inc. (NYSE:ACHR) also plans to use the airport for testing its next-generation AI-powered aviation technologies.
That said, a day earlier on December 8, Cantor Fitzgerald reiterated a Buy rating on Archer Aviation Inc (NYSE:ACHR) without disclosing any price targets. The firm noted that its optimistic outlook is based on the company’s plan to launch an air taxi network in the Miami area, announced on December 3. The anticipated network will connect Miami, Fort Lauderdale, Boca Raton, and West Palm Beach, offering 10 to 20-minute flights. The firm believes that it will reduce congestion and improve regional mobility between the said locations.
Archer Aviation Inc. (NYSE:ACHR) is an aerospace company engaged in the development of innovative technologies to power the future of aviation.
1. Voyager Technologies, Inc. (NYSE:VOYG)
Number of Hedge Fund Holders: 19
Analyst Upside Potential: 72.27%
Voyager Technologies, Inc. (NYSE:VOYG) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 8, Voyager Technologies, Inc. (NYSE:VOYG) announced signing a joint investment agreement with the University of North Dakota to drive innovation.
The University of North Dakota holds a significant position as it hosts one of the nation’s oldest and largest Space Studies Departments. It also has a NASA-funded lab for space suit design. Management noted that through the joint investment agreement, it will collaborate to accelerate research and development in human spaceflight, planetary habitats, and orbital operations. Moreover, the partnership will also support technology integration into Voyager Technologies, Inc.’s (NYSE:VOYG) Starlab space station project and other commercial space infrastructure, including the company’s science park.
Wall Street also remains bullish on the stock. On November 26, KeyBanc maintained its Buy rating on the stock with a $45 price target. Earlier on November 24, Ronald Epstein from the Bank of America Securities also reiterated a Buy rating on Voyager Technologies, Inc. (NYSE:VOYG) with a price target of $41.
Analysts from KeyBanc maintained their positive outlook after the company’s first post-IPO investor day. The firm showed confidence in the company’s Starlab as the front-runner in NASA’s Commercial Lunar Destination (CLD) contract. Moreover, KeyBanc also believes that the company has a robust pipeline of defense opportunities.
Voyager Technologies, Inc. (NYSE:VOYG) is a defense technology and space solutions company that develops and delivers mission-critical systems enabled by advanced technology, analytics, and space infrastructure.
While we acknowledge the potential of VOYG 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 VOYG and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center