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.
11. Cadre Holdings, Inc. (NYSE:CDRE)
Analyst Upside Potential: 31.29%
Number of Hedge Fund Holders: 14
Cadre Holdings, Inc. (NYSE:CDRE) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 13, BofA analyst Ronald Epstein downgraded Cadre Holdings, Inc. (NYSE:CDRE) from Buy to Neutral, while also reducing the price target from $45 to $38.
Epstein highlighted that inorganic growth, which has been a major part of the company’s growth story and valuation, is likely to face delays and slowdowns due to the current environment. Moreover, the cost of borrowing is also expected to increase, which the analyst expects is likely to affect the company’s financial performance. As a result, Epstein also lowered his EPS estimates on Cadre Holdings, Inc. (NYSE:CDRE) for 2025, 2026, and 2027.
During the fiscal first quarter of 2025, Cadre Holdings, Inc. (NYSE:CDRE) reported net sales of $130.1 million, down from $137.9 million in Q1 2024. Management noted that the company’s product mix was not favorable mainly due to lower volumes in Alpha Safety and EOD products. However, despite this, it still increased its quarterly order backlog by $22.4 million.
Cadre Holdings, Inc. (NYSE:CDRE) is a leading provider of safety and survivability products that are used by first responders, law enforcement, military, and emergency services personnel.
10. EHang Holdings Limited (NASDAQ:EH)
Analyst Upside Potential: 60.00%
Number of Hedge Fund Holders: 16
EHang Holdings Limited (NASDAQ:EH) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 20, EHang Holdings Limited (NASDAQ:EH) announced entering into a strategic partnership with the Management Committee of Jingyue High-tech Industrial Development Zone.
Under this partnership both the parties will collaborate to develop a provincial-level demonstration zone focused on low-altitude economic development. The focus of this zone would be on Industrial development, technological innovation, and real-world application of eVOLTs. Under the agreement, the platform company Jilin Aerospace Industry Development Investment Co., Ltd. has also agreed to place an order of 41 units of EHang’s EH216-S pilotless eVTOLs.
EHang Holdings Limited (NASDAQ:EH) is an aerospace technology company that deals in unmanned aerial vehicle systems and solutions. The company operates through three main businesses including air mobility solutions, smart city management solutions, environmental monitoring; and aerial media solutions.
9. Loar Holdings Inc. (NYSE:LOAR)
Analyst Upside Potential: 19.32%
Number of Hedge Fund Holders: 20
Loar Holdings Inc. (NYSE:LOAR) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 13, Kristine Liwag from Morgan Stanley maintained a Buy rating on Loar Holdings Inc. (NYSE:LOAR) with a price target of $100. The reiterated bullish sentiment is based on the company’s strong Q1 2025 results and an upward revision for the 2025 outlook.
During the fiscal first quarter of 2025, the company delivered net sales of $114.7 million, up 24.8% year-over-year. The growth was driven by strong demand in defense, commercial aftermarket, and commercial OEM sectors. Notably, the net income of $15.3 million also grew, up from $13.1 million a year ago. Management noted its Defense sales surged by 30%, driven by strong demand across multiple platforms and increased market share from new product launches.
Loar Holdings Inc. (NYSE:LOAR) also noted growing bookings and backlogs to record amounts across all its market sectors. As a result, management revised its full-year outlook upwards from previously expected net sales of $480 million and $488 million to $482 million and $490 million.
Loar Holdings Inc. (NYSE:LOAR) manufactures and supplies specialized aerospace and defense components. It serves key markets including commercial aerospace, business jets, general aviation, and defense, and has established relationships with original equipment manufacturers and Tier One suppliers worldwide.
8. Planet Labs PBC (NYSE:PL)
Analyst Upside Potential: 29.15%
Number of Hedge Fund Holders: 23
Planet Labs PBC (NYSE:PL) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 23, Cantor Fitzgerald raised the firm’s price target on Planet Labs PBC (NYSE:PL) from $6.30 to $8.50 while keeping an Overweight rating on the stocks. The firm named the company its “Top Pick” in the space sector due to increased confidence in multiple pathways for the company to outperform over the next 12 months.
The analyst highlighted Planet Labs PBC (NYSE:PL)’s promising pipeline of satellite services deals, such as that of JSAT, which are expected to deliver significant benefits. These deals could accelerate the company’s timeline to achieve sustainable free cash flow. Cantor Fitzgerald also sees the company’s Earth Intelligence business to be well positioned to benefit from a multi-year period of global insecurity.
In addition, the firm sees Planet Labs PBC (NYSE:PL)’s emerging satellite services strategy resembles Berkshire Hathaway’s free float strategy. It believes that this allows the company to collect premiums and invest with structurally cheaper capital compared to competitors.
Planet Labs PBC (NYSE:PL) is a leading aerospace and defense company that provides daily satellite and geospatial solutions. It provides mission-critical data, advanced insights, and software solutions to various government and commercial users.
7. V2X, Inc. (NYSE:VVX)
Analyst Upside Potential: 19.94%
Number of Hedge Fund Holders: 25
V2X, Inc. (NYSE:VVX) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 23, Stifel resumed coverage on V2X, Inc. (NYSE:VVX) with a Buy rating and a $55 price target on the stock.
The firm highlighted that V2X operates in the “less-crowded” vertical of overseas base support, which faces less competition compared to other sectors. This strategic positioning is seen as a competitive edge for the company, especially given the current US administration’s renewed focus on military readiness, training, and a strategic pivot toward the Asia-Pacific region.
Stifel believes that V2X is well-placed to benefit from these government priorities and that new contract bookings could serve as a positive catalyst for the stock’s performance. One such instance happened in May when V2X, Inc. (NYSE:VVX) announced being selected as an awardee of the US Army’s Live Training, Ranges, and Combat Training Centers.
V2X, Inc. (NYSE:VVX) develops innovative solutions that connect physical and digital environments, primarily serving defense and national security customers worldwide.
6. Textron Inc. (NYSE:TXT)
Analyst Upside Potential: 13.52%
Number of Hedge Fund Holders: 29
Textron Inc. (NYSE:TXT) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 19, Textron Inc. (NYSE:TXT) announced a new partnership to support the Royal Thai Air Force through a Memorandum of Agreement signed during the Paris Air Show in June 2025.
The agreement centers on a sustainment program for the Royal Thai Air Force’s fleets of Beechcraft T-6TH trainer and AT-6TH light attack aircraft, both designed and manufactured by Textron Aviation Defense LLC., a wholly owned subsidiary of Textron Inc. (NYSE:TXT). The partnership aims to provide long-term maintenance, support, and sustainment for the RTAF’s T-6TH and AT-6TH aircraft. The goal of this collaboration is to ensure the highest level of operational readiness for these aircraft, which are crucial for pilot training and light attack missions within the RTAF.
Beechcraft T-6 Texan II is a premier military flight trainer, whereas the Beechcraft AT-6 Wolverine is purpose-built for light attack, counter-insurgency, and Countering Violent Extremist Organizations. Textron Inc. (NYSE:TXT) is an international company that operates in several industries, including aviation, defense, industrial equipment, and finance.
5. Archer Aviation Inc. (NYSE:ACHR)
Analyst Upside Potential: 30.92%
Number of Hedge Fund Holders: 33
Archer Aviation Inc. (NYSE:ACHR) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 23, Cantor Fitzgerald analyst Andres Sheppard reaffirmed an Overweight rating on Archer Aviation Inc. (NYSE:ACHR) with a price target of $13.00.
The price target set by Andres Sheppard reflects around 30% upside from the current level and is based on the series of partnerships that the company has forged recently. On June 19, Archer Aviation Inc. (NYSE:ACHR) announced its partnership with Jetex to develop infrastructure supporting Archer’s commercial air taxi network by integrating its Midnight eVTOL aircraft into Jetex’s portfolio of 40 private aircraft terminals.
Earlier on June 17, the company participated alongside the US Transportation Secretary and Acting FAA Administrator and announced an alliance among five countries aimed at harmonizing and accelerating the certification process for eVTOL aircraft worldwide. Moreover a day before this announcement Archer Aviation Inc. (NYSE:ACHR) had announced a strategic partnership to deploy its Midnight eVTOL aircraft in Indonesia, marking a significant step in expanding its commercial air taxi operations into Southeast Asia. Andres Sheppard suggests these partnerships are proponents of strong liquidity and key drivers for future growth.
Archer Aviation Inc. (NYSE:ACHR) designs and develops electric vertical takeoff and landing (eVTOL) aircraft, primarily for urban air mobility and air taxi services.
4. StandardAero, Inc. (NYSE:SARO)
Analyst Upside Potential: 16.05%
Number of Hedge Fund Holders: 50
StandardAero, Inc. (NYSE:SARO) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 17, StandardAero, Inc. (NYSE:SARO) announced the renewal of its long-term maintenance, repair, and overhaul contract with Thailand’s Nok Airlines Public Company Limited.
Under the partnership, the company will continue supporting CFM International CFM56-7B turbofan engines, which power Nok Air’s fleet of fourteen Boeing 737-800 aircraft. The renewed partnership builds on StandardAero, Inc.’s (NYSE:SARO) previous support for Nok Air’s former fleet of Dash 8-400 turboprops, reflecting a longstanding relationship between the two companies. As part of the renewal, StandardAero, Inc. (NYSE:SARO) has already inducted two Nok Air CFM56-7B engines at its facility in Winnipeg.
StandardAero, Inc. (NYSE:SARO) is a leading independent aerospace company specializing in maintenance, repair, and overhaul services for aircraft engines and other components across commercial, military, and business aviation sectors.
3. Northrop Grumman Corporation (NYSE:NOC)
Analyst Upside Potential: 12.65%
Number of Hedge Fund Holders: 54
Northrop Grumman Corporation (NYSE:NOC) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 24, Northrop Grumman Corporation (NYSE:NOC) announced signing a Memorandum of Understanding (MOU) with the Ministry of Defence and Ministry of Finance of the Republic of Lithuania to expand the co-production of medium-caliber ammunition.
The agreement formalizes the intent to collaborate more closely on producing medium-caliber ammunition, which is critical for military operations. It aims to enhance Lithuania’s industrial capabilities in ammunition manufacturing, helping develop local expertise and technology. Dovile Sakaliene, defense minister of Lithuania noted that by producing ammunition locally, Lithuania can better maintain its military stockpiles and strengthen supply chains, which is crucial for national defense and NATO commitments.
Northrop Grumman Corporation (NYSE:NOC) is a leading aerospace and defense technology company that manufactures advanced technology and equipment for the military and space.
2. Lockheed Martin Corporation (NYSE:LMT)
Analyst Upside Potential: 12.35%
Number of Hedge Fund Holders: 68
Lockheed Martin Corporation (NYSE:LMT) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 24, Lockheed Martin Corporation (NYSE:LMT) announced the successful execution of Flight Test Other-26a, in collaboration with the US Missile Defense Agency.
The test demonstrated the capabilities of Lockheed Martin Corporation (NYSE:LMT)’s Long Range Discrimination Radar, which successfully detected, tracked, and discriminated against a live ballistic missile threat in a complex environment over the north Pacific Ocean. The LRDR tracked an air-launched ballistic missile target equipped with countermeasures, showcasing its ability to distinguish real threats from decoys and background clutter.
This test marked several firsts including LRDR’s effective detection, tracking, and discrimination in a complex environment, and C2BMC’s successful use of LRDR flight test data to support a simulated missile defense engagement.
Lockheed Martin Corporation (NYSE:LMT) is an international aerospace and defense company that develops and manufactures advanced technology systems and products. It operates in four main areas including military aircraft, missile and air defense systems, helicopters and naval systems, and space technologies.
1. The Boeing Company (NYSE:BA)
Analyst Upside Potential: 11.36%
Number of Hedge Fund Holders: 96
The Boeing Company (NYSE:BA) is one of the 13 Best Aerospace and Defense Stocks to Invest in Now. On June 16, The Boeing Company (NYSE:BA) in collaboration with Royal Australian Air Force announced a successful first-of-its-kind demonstration.
Under the demonstration, two uncrewed MQ-28 Ghost Bat aircraft, along with a third digital aircraft, were controlled simultaneously by a single operator aboard an airborne E-7A Wedgetail surveillance aircraft. The MQ-28s acted as forward escorts, flying ahead of and protecting crewed assets, showcasing their role as collaborative combat aircraft that can expand and enhance the operational capabilities of the E-7A Wedgetail.
The trial validated a critical interoperability requirement, proving the ability to integrate mission partners’ software and communication systems natively into the E-7A Wedgetail’s open systems architecture. Moreover, the software enabling this integration was developed collaboratively by The Boeing Company (NYSE:BA) Defence Australia, the Defence Science and Technology Group, and the US Air Force Research Laboratories.
The Boeing Company (NYSE:BA) is a leading aerospace company that designs, manufactures, and sells commercial jet aircraft. It also develops and produces manned and unmanned military aircraft, weapons systems, and space technologies.
While we acknowledge the potential of BA 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 BA 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.
