In this article, we will look at the 13 Best Aerospace and Defense Stocks to Invest in Now.
On June 27, Jonathan Siegmann, managing director covering the aerospace and defense industry at Stifel joined CNBC for an interview. He released a note advising investors to lean into the defense changes and throw out the legacy defense investment playbook.
He elaborates that the market has not been reinvesting in the defense sector for decades. Siegmann sees the defense industry turning into a growth industry. He expressed his enthusiasm for defense companies that are leading this change by investing in new capacities, delivering products that are cheaper and more effective, and taking advantage of the new environment for the sector.
Siegmann likes companies with direct drone exposure and those that have significantly increased their capital expenditure. He suggests that most of the defense sector companies have cash on their side and they should be investing in low-cost cruise missiles, drone programs, and hypersonics. He highlighted that the Russia-Ukrainian conflict has shown the potential of low-cost drones against sophisticated fighter jets, whereas the recent US strikes on Iran demonstrate the potential of expensive defense equipment, both of which are good for the sector.
With that let’s take a look at the 13 best aerospace and defense stocks to invest in now.
Our Methodology
To curate the list of the 13 best aerospace and defense stocks to invest in now, we used the Finviz stock screener and CNN as our sources. Using the screener we aggregated a list of aerospace and defense stocks for which analysts see more than 10% upside, as of June 27. Next, we checked the analyst upside potential from CNN and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q1 2025 database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best Aerospace and Defense Stocks to Invest in Now
13. Redwire Corporation (NYSE:RDW)
Analyst Upside Potential: 56.05%
Number of Hedge Fund Holders: 10
Redwire Corporation (NYSE:RDW) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 24, Analyst Scott Buck from H.C. Wainwright reiterated a Buy rating on Redwire Corporation (NYSE:RDW) with a $26.00 price target. The bullish sentiment is based on the acquisition of Edge Autonomy made by the company.
On June 13, Redwire Corporation (NYSE:RDW) announced the acquisition of Edge Autonomy, a leading provider of uncrewed airborne system technology. This strategic transaction transforms the company into an aerospace and defense technology company focused on integrated autonomous operations for defense and national security. Moreover, the acquisition also expands the company’s global manufacturing and innovation footprint, adding over 1,300 skilled employees and more than 628,000 square feet of manufacturing facilities across the US and Europe.
Analyst Scott Buck believes the acquisition will immediately boost Redwire Corporation’s (NYSE:RDW) revenue, EBITDA, and free cash flow. Moreover, the analyst expects the integration to be swift, enabling the company to capitalize on immediate opportunities, particularly in Europe, where defense budgets are projected to increase.
12. Vertical Aerospace Ltd. (NYSE:EVTL)
Analyst Upside Potential: 161.23%
Number of Hedge Fund Holders: 12
Vertical Aerospace Ltd. (NYSE:EVTL) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 12, Vertical Aerospace Ltd. (NYSE:EVTL) announced the expansion of its strategic partnership with Bristow Group Inc. (NYSE:VTOL) to bring advanced air mobility to commercial operations.
Under the partnership, both companies will accelerate the commercial adoption of the VX4 model, which is an electric vertical takeoff and landing aircraft. The partnership also introduces a ready-to-fly model that provides customers with certified V4X aircraft, trained pilots, maintenance, and insurance coverage. These services have been introduced to lower barriers to entry for organizations interested in launching eVTOL services, as they eliminate the need for customers to build their operational infrastructure from scratch.
Moreover, both companies also signed a Memorandum of Understanding, under which Bristow Group Inc. (NYSE:VTOL) placed a pre-order for up to 50 VX4, with the option to purchase up to 50 more from Vertical Aerospace Ltd. (NYSE:EVTL).
Vertical Aerospace Ltd. (NYSE:EVTL) is a UK-based global aerospace and technology company pioneering electric aviation. It focuses on manufacturing and selling electric vertical takeoff and landing (eVTOL) aircraft for the advanced air mobility (AAM) market. VX4 is its flagship product designed to carry a pilot and up to four passengers.
