This article looks at the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns.
The world has been rocked by geopolitical conflicts since the turn of the decade, and, as expected, the turmoil has proven to be a boon for aerospace and defense stocks as countries significantly raise their military expenditure.
The Gabelli Commercial Aerospace & Defense ETF (GCAD) has surged 121% over the last five years, as of the close of business on June 29, compared with the S&P 500 index, which has gained 73% over the same period.
While speaking with CNBC last week, Tony Bancroft, Portfolio Manager at Gabelli Funds, said he expects production of aircraft, missiles, and warships to increase in the coming years amid rising demand driven by geopolitical conflicts. He noted Honeywell, L3Harris, and Albany International as good investment opportunities.
Bancroft’s comments followed news of President Trump hosting defense CEOs at the White House during the week to discuss production expansion in order to replenish vital defense systems and reassure allies of the country’s ability to meet rising demand for defense equipment.
With that said, let’s head over to the list of aerospace and defense stocks with the largest 5Y share price returns.
Methodology
We used screeners to identify mid-cap or larger stocks in the aerospace and defense industry that trade on American exchanges. From there, we selected the top 8 companies with the largest share price gains over the past five years, as of the close of business on June 29, 2026. The stocks are listed in ascending order of their 5Y share price change. Additionally, we also included data on hedge fund holdings in these companies as of Q1 2026 to provide further insight into investor interest.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns:
8. VSE Corporation (NASDAQ:VSEC)
5Y Price Change: 354%
Number of Hedge Fund Holders: 41
VSE Corporation (NASDAQ:VSEC) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns, with the company’s shares having gained over 350% during the period.
On June 26, Morgan Stanley analyst Kristine Liwag initiated coverage on the stock with an Equal Weight rating and a price target of $245. According to TipRanks, the firm praised the company’s aerospace aftermarket platform as ‘differentiated’ given the promising growth and margin drivers.
However, the analyst told investors in a research note that Morgan Stanley believes the stock’s valuation offers a balanced risk/reward at its current trading levels.
The update follows RBC Capital’s reaffirmation of an Outperform rating and $240 price target on VSE Corporation on June 10.
Overall, Wall Street has a bullish outlook on the stock with a Strong Buy rating based on the recommendations from 9 analysts. VSEC has a one-year average share price target of $249, representing an upside potential of 11% from Monday’s close.
In other news, on May 7, the company announced a quarterly cash dividend of 10 cents per share. The payment is scheduled for July 29, 2026, to all stockholders of record as of the close of business on July 15, 2026.
VSE Corporation provides aviation distribution and repair services for the commercial, business, and general aviation aftermarkets.
7. Moog Inc. (NYSE:MOG-A)
5Y Price Change: 411%
Number of Hedge Fund Holders: 39
Moog Inc. (NYSE:MOG-A) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns. On June 29, the company announced that it had signed an MOU with Poland’s PONAR Wadowice S.A. to determine a framework for future collaboration.
The agreement, signed in Krakow, is a significant milestone in the company’s quest to strengthen U.S.-Polish cooperation and advance aerospace and defense capabilities across Europe.
According to Moog Inc.’s press release, the MOU will focus on working together with PONAR Wadowice on hydraulic and electro-hydrostatic actuation systems for defense and military aerospace applications in line with the requirements of Poland’s security forces and other European customers.
These will include aviation test equipment and other related hardware to strengthen the capabilities of the continent’s militaries.
In other news, TD Cowen analyst Gautam Khanna lifted the firm’s price target on the stock to $450 from $350 on June 10 and reiterated a Buy rating. The new price target reflects an upside potential of 6% from Monday’s close.
Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and control systems for manufacturers and end users in the aerospace, defense, and industrial markets. The stock has gained 75% year-to-date as of the close on June 29.
6. Elbit Systems Ltd. (NASDAQ:ESLT)
5Y Price Change: 457%
Number of Hedge Fund Holders: 27
Elbit Systems Ltd. (NASDAQ:ESLT) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns. The stock has surged 457% during the period. While Wall Street has a cautious outlook on its shares, analysts anticipate a further 28% upside over the next 12 months.
This is despite Jefferies’ Sheila Kahyaoglu slashing the firm’s price target on the stock to $880 from $950 on June 24, after holding meetings with management in Europe the prior week.
According to TipRanks, the analyst told investors that the defense firm is aiming to double revenue on the continent by 2030, which would mean a CAGR of 15%, compared to the company’s 11% to 2028. The firm maintained its Hold rating.
In related news, Jefferies also noted the recent press reports about the likelihood of an incremental $14.7 billion injection into Israel’s defense budget and views the development as encouraging for Elbit Systems Ltd..
On the other hand, the stock continues to gain traction among institutional investors. According to Insider Monkey’s database for Q1 2026, 27 hedge funds held a stake in the company, increasing from 25 at the end of Q4 2025.
Elbit Systems Ltd. is a defense technology company providing next-generation solutions across multiple domains, including airborne, land, and naval systems.
5. Curtiss-Wright Corporation (NYSE:CW)
5Y Price Change: 525%
Number of Hedge Fund Holders: 52
Curtiss-Wright Corporation (NYSE:CW) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns, having appreciated by more than 500% over the period.
Photo by Arturo Añez on Unsplash
Wall Street has a Moderate Buy rating on the stock with an average share price upside potential of 7%, as of the close on June 29. Recent updates include William Blair analyst Louie DiPalma, who reiterated the firm’s Buy rating on the stock on June 4, according to a report on TipRanks.
Last month, Curtiss-Wright Corporation said it had reached a new credit agreement with a group of banks, which has lifted the size of its revolving credit facility to $1 billion. This has also expanded the accordion feature to $500 million.
The new facility will mature in May 2031. The company intends to use the funds for general corporate purposes, including potential future acquisitions and internal growth initiatives.
In other news, the company reported sales of $914 million for the first quarter, increasing 13% year-over-year. Operating income grew 23% to $160 million, while operating margin stood at 17.5%. Diluted EPS came in at $3.46, improving from $2.68 in the prior year’s period.
New orders totaled $1.2 billion, up 16% from the prior year’s period. Curtiss-Wright ended the quarter with a backlog of $4.3 billion, increasing 5% sequentially. Following the results, the management lifted its guidance for the fiscal year across all major metrics.
Curtiss-Wright Corporation is an integrated business that provides engineered products, solutions, and services for the aerospace and defense markets.
4. Astronics Corporation (NASDAQ:ATRO)
5Y Price Change: 550%
Number of Hedge Fund Holders: 42
Astronics Corporation (NASDAQ:ATRO) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns. On Monday, the company was selected to provide the low-voltage power distribution system for Vertical Aerospace’s Valo eVTOL aircraft.
This is a long-term agreement under which Astronics will supply the low-voltage power distribution for the aircraft, including hardware for power conversion and distribution, which aids in controlling electrical power for key aircraft systems by transforming high-voltage power from the propulsion architecture into low-voltage power. This is then leveraged by avionics, flight controls, and other vital systems.
According to Vertical’s press release, Astronics Corporation has played an important role in the development of the aircraft during its prototype stage. Its hardware is already being used in the piloted flight test aircraft.
In other news, the stock continues to remain on analysts’ radar. It currently sports a Strong Buy rating and has an average share price upside potential of 19% as of the close on June 29.
Investor sentiment remains strong and steady as well. According to Insider Monkey’s database for Q1 2026, 42 hedge funds hold a stake in the company.
Astronics Corporation provides advanced technologies to global aerospace, defense, and electronics clients. Some of its offerings include lighting and safety systems, aircraft electronics integration, automated test systems, and distribution and motion systems, among other products and services.
3. Howmet Aerospace Inc. (NYSE:HWM)
5Y Price Change: 698%
Number of Hedge Fund Holders: 75
Howmet Aerospace Inc. (NYSE:HWM) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns. The stock has returned 698% over the past five years. Wall Street forecasts further upside over the 12-month period.
As of the close of business on June 29, HWM is a Strong Buy based on the recommendations from 14 analysts. The stock has a one-year average share price target of $304.58, representing an upside potential of 13% from Monday’s close.
Latest updates include Bernstein analyst Douglas Harned, who on June 16 maintained the firm’s Outperform rating on Howmet Aerospace Inc. with a price target of $318, according to TipRanks.
The aircraft parts maker made a strong start to 2026, beating Wall Street’s estimates for both profit and revenue during the first quarter and lifting its guidance for the full year amid robust growth in its aerospace and gas turbine businesses.
Q1 revenue came in at $2.31 billion, up 19% from the prior year, and beating estimates of $2.24 billion. Adjusted EPS was reported at $1.22, rising 42% year-over-year, and surpassing estimates by 11 cents.
The company now anticipates annual revenue in the range of $9.58 billion to $9.73 billion, up from its initial expectations of $9 billion to $9.2 billion. Adjusted earnings are expected between $4.88 and $5.00 per share, compared to the earlier forecast of $4.35 to $4.55.
Howmet Aerospace Inc. 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.
2. Rocket Lab Corporation (NASDAQ:RKLB)
5Y Price Change: 799%
Number of Hedge Fund Holders: 43
Rocket Lab Corporation (NASDAQ:RKLB) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns, having surged nearly 800% during the period, as of the close on June 29.
On June 25, the company announced that it had been selected by NASA to launch Sun and Earth Sciences missions. Under the agreement, it will provide three Electron launches for the Polarized Submillimeter Ice-cloud Radiometer (PolSIR) and Total and Spectral Solar Irradiance Sensor-2 (TSIS-2) missions.
Both launches will be performed under NASA’s Venture-Class Acquisition of Dedicated and Rideshare (VADR) contract from Launch Complex 1 in New Zealand. According to the press release, there will be two launches for the PolSIR mission in June 2027 or later, while a separate launch for the TSIS-2 mission is planned for early next year.
In other news, Rocket Lab Corporation continues to remain on analysts’ radar and currently sports a Strong Buy rating with an average share price upside potential of 11% as of the close on June 29.
Recent updates include KeyBanc, which upgraded the stock to Overweight from Sector Weight on June 15 with a price target of $135. The firm cited the company’s position in the commercial space launch market as the reason behind the adjustment.
Rocket Lab Corporation is a global leader in launch services and space systems with an established record of delivery success. The company designs and manufactures spacecraft and related components, rockets, and on-orbit management solutions required for the space economy.
1. FTAI Aviation Ltd. (NASDAQ:FTAI)
5Y Price Change: 838%
Number of Hedge Fund Holders: 56
FTAI Aviation Ltd. (NASDAQ:FTAI) is among the 8 Aerospace and Defense Stocks with the Largest 5Y Share Price Returns. The company’s share price has gained 838% during the period.
Wall Street also has a bullish outlook on the company with a Strong Buy rating based on the recommendations from 5 analysts. Moreover, the stock has an average share price upside potential of 33% as of the close on June 29.
FTAI Aviation Ltd. reported Aerospace Products revenue of $743.8 million for the first quarter, growing 104% year-to-date, while adjusted EBITDA in this space came in at $222.6 million, up 70% from the prior year’s period. Moreover, the company announced it would raise its quarterly dividend for the third successive quarter, from $0.40 to $0.45 per share, amid strong free cash flow generation.
Institutional investors’ interest in the stock remains strong and steady. According to Insider Monkey’s database for Q1 2026, 56 hedge funds held a stake in FTAI, remaining unchanged from the fourth quarter of 2025.
Tourlite Capital Management, in its Q1 2026 investor letter, praised FTAI’s strong quarterly results despite supply constraints in the aerospace and engine markets. The firm noted the company’s rapidly growing market share in the CFM56 aftermarket and highlighted the positive momentum from the joint venture with Jereh Group.
FTAI Aviation Ltd. owns, acquires, maintains, and sells aviation equipment, with a strong focus on CFM56 and V2500 engines.
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