This article looks at the 12 Best Aerospace Stocks to Buy Right Now.
Aerospace stocks gained on Wednesday amid reports of Elon Musk’s SpaceX filing for its initial public offering, lifting hopes that the news could further strengthen investor sentiment toward the sector.
Gabelli Commercial Aerospace & Defense ETF (GCAD) returned 2.06% last week, taking its year-to-date gains to nearly 10%, comfortably outpacing the S&P 500, which is down 4% so far in 2026.
The ongoing geopolitical conflicts have played a vital role in the gains in the aerospace and defense industry as countries ramp up defense spending to bolster their national security. On the other hand, booming commercial aviation demand has also led to growth, even as the war in Iran results in flight disruptions.
While Airbus and Boeing have faced delays, several aftermarket stocks have surged over the past year. On April 1, Investor’s Business Daily quoted Tony Bancroft, Portfolio Manager at Gabelli Funds, as saying the following on the segment’s potential:
“The markets have figured it out, and they realize that this is a good business. You just have to make your decisions based on your long-term view on these companies.”
With that said, let’s now see some of the best aerospace stocks to buy now.
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Methodology
For this article, we used screeners to identify mid-cap or larger aerospace stocks. We then shortlisted the top 12 companies that had the highest number of hedge fund investors having a stake in them, based on Insider Monkey’s database of prominent hedge funds as of Q4 2025. Finally, we ranked them in ascending order based on the number of hedge funds holding positions. Where two or more stocks are tied on hedge fund sentiment, we used market cap as a tiebreaker between them.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Best Aerospace Stocks to Buy Right Now
12. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 48
L3Harris Technologies, Inc. (NYSE:LHX) is among the 12 Best Aerospace Stocks to Buy Right Now. On April 1, the company powered the first crewed journey towards the moon in over five decades by providing propulsion and avionics for the launch of the Artemis II mission.
In a press release on Wednesday, the aerospace and defense contractor said it is aiding the mission through the provision of more than 100 elements, including the RS-25, RL10, and the Orion Main engines for various stages. The company also supplied advanced avionics systems, in-space thrusters, and audio systems for the Artemis II.
L3Harris Technologies, Inc. (NYSE:LHX) congratulated NASA on the liftoff and said that the company will continue to support the mission till its completion.
In other news, UBS analyst Gavin Parsons, on March 25, reiterated the firm’s Neutral rating on the stock, with a price target of $362, according to TipRanks. Overall, LHX sports a Strong Buy rating and has an average upside potential of 12% as of the close on April 2.
L3Harris Technologies, Inc. (NYSE:LHX) provides advanced national security solutions in the air, land, space, sea, and cyber domains. It operates through four segments: Communication Systems, Integrated Mission Systems, Space & Airborne Systems, and Aerojet Rocketdyne.
11. Planet Labs PBC (NYSE:PL)
Number of Hedge Fund Holders: 50
Planet Labs PBC (NYSE:PL) is among the 12 Best Aerospace Stocks to Buy Right Now. As of the close on April 2, the stock is a Strong Buy with a slight average downside potential of 3%.
On March 27, Deutsche Bank analyst Edison Yu hiked the price target on the stock to $38 from $17, while maintaining a Buy rating. According to a report on TipRanks, the firm told clients in a research note that the company was ‘sitting uniquely at the intersection’ of space and artificial intelligence.
The update followed Morgan Stanley’s adjustment on Planet Labs PBC (NYSE:PL) on March 25 when it lifted the price target to $35 from $26 and reiterated an Equal-Weight rating.
In a research note to investors, the bank noted strong momentum across Defense and Intelligence and Satellite services, coupled with a strong growth in backlog, which reached $900 million at the end of fiscal 2026. However, the firm added that investments were squeezing margins, which would impact profitability in the near term.
Planet Labs PBC (NYSE:PL) provides global, daily satellite imagery and geospatial solutions. The stock has returned nearly 76% year-to-date, as of the close on April 2.
10. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 59
Lockheed Martin Corporation (NYSE:LMT) is among the 12 Best Aerospace Stocks to Buy Right Now. On April 2, Citigroup analyst John Godyn raised the firm’s price target on the stock to $675 from $673 while maintaining a Neutral rating.
The bank said it had adjusted estimates and price targets across the aerospace and defense sector as part of its first-quarter preview.
Earlier on April 1, Wells Fargo initiated coverage on the defense contractor with an Equal-Weight rating and announced a price target of $650. In a research note to investors, analyst David Strauss said that the firm anticipates slower growth and weaker free cash flow compared to peers.
Wells Fargo sees Lockheed Martin Corporation (NYSE:LMT)’s margins being pressured due to certain fixed-price programs, with the cash burn on these programs also expected to squeeze free cash flow, the analyst added.
As of the close of business on April 2, Wall Street has a Hold rating on the stock with a one-year average share price target of $672.50, representing an upside of 8%.
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.
9. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holders: 62
Northrop Grumman Corporation (NYSE:NOC) is among the 12 Best Aerospace Stocks to Buy Right Now. As of the close of business on April 2, the stock is a Moderate Buy with an average share price upside potential of 7%.
Recent updates include Citigroup on Thursday lifting the price target on the defense contractor to $807 from $781 and maintaining a Buy rating as part of its Q1 preview.
Earlier on April 1, Wells Fargo initiated coverage on the stock with an Overweight rating and a price target of $800. According to a report on TipRanks, the firm said that increased capital investment and development spend by Northrop Grumman Corporation (NYSE:NOC) was overshadowing its growth outlook.
However, the analyst told investors in a research note that the company was ‘now approaching the other side’, because of which he expects the stock to outperform competitors in share price.
In other news, on March 30, the aerospace and defense company secured a contract modification from the U.S. Navy for up to nine additional SEWIP Block 3 maritime electronic attack systems.
Northrop Grumman Corporation (NYSE:NOC) is one of the world’s largest defense contractors. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.
8. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 66
General Dynamics Corporation (NYSE:GD) is among the 12 Best Aerospace Stocks to Buy Right Now. On April 1, Wells Fargo analyst David Strauss initiated coverage on the stock with an Overweight rating and announced a share price target of $400.
In a research note to investors, the analyst said that things are looking up for the company after a series of negative earnings revisions, as it is likely to gain from an improving operating environment for shipbuilding, encouraging demand for military vehicles, and a multi-year refresh of its business jet product lineup.
In related news, on April 2, Citigroup trimmed its price target on the stock to $380 from $389, as it revised price targets for aerospace and defense companies as part of the firm’s Q1 preview.
As of the close of business on April 2, General Dynamics Corporation (NYSE:GD) is a Moderate Buy and has a one-year average share price target of $399.73, representing a 15% upside.
Last month, the company secured a $15.38 billion Navy contract modification involving the Columbia-class submarines, under which it will support the program by providing services like submarine design, sustainment, lead yard services, supplier development efforts, and enterprise planning initiatives.
General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.
7. Woodward, Inc. (NASDAQ:WWD)
Number of Hedge Fund Holders: 69
Woodward, Inc. (NASDAQ:WWD) is among the 12 Best Aerospace Stocks to Buy Right Now. On March 31, the company said that it had completed the acquisition of Valve Research & Manufacturing Company.
According to the press release, about 130 employees of the Florida-based manufacturer of flow control valves for aerospace applications will become members of Woodward and work under its Fuel Systems and Controls business. Moreover, the facility in Florida will be called the Woodward Florida Campus (WFC).
The transaction was originally announced on March 9, with the terms of the deal including the takeover of all outstanding shares of Valve Research & Manufacturing Company, along with its manufacturing facilities and real estate.
In other news, Wells Fargo on April 1 initiated coverage on Woodward, Inc. (NASDAQ:WWD) with an Overweight rating and announced a share price target of $440.
As of the close of business on April 2, the stock is a Strong Buy with an average share price upside potential of 13%.
Woodward, Inc. (NASDAQ:WWD) designs, produces, and services energy conversion and control solutions for the aerospace and industrial equipment markets.
6. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holders: 71
Howmet Aerospace Inc. (NYSE:HWM) is among the 12 Best Aerospace Stocks to Buy Right Now. The stock continues to remain on analysts’ radar and sports a Strong Buy rating with an average share price upside of 19% as of the close of business on Thursday.
Recent updates include Citigroup on April 2, reducing the price target on the stock to $271 from $283, while reiterating a Buy rating. The adjustment came as part of the firm’s first-quarter preview.
Earlier on April 1, Wells Fargo’s David Strauss initiated coverage on Howmet Aerospace Inc. (NYSE:HWM) with an Equal-Weight rating and announced a price target of $240.
The analyst, in a research note to clients, noted HWM’s high valuation, while highlighting that it anticipates less upside to estimates compared to peers in the industry. Wells Fargo also added that much of the company’s organic growth over the past years was largely in line with how other peers performed.
In other news, last month the company was named among the 10 Best Aerospace Dividend Stocks to Buy by Insider Monkey, reflecting its commitment to shareholder returns.
Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for the aerospace and transportation industries. The company’s primary business focus is on providing components for aircraft engines, airframe structures, and fastening systems.
While we acknowledge the potential of HWM 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 HWM and that has 100x upside potential, check out our report about the cheapest AI stock.
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