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.
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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 (NASDAQ:VSEC) 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 (NASDAQ:VSEC) 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. (NYSE:MOG-A)’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. (NYSE:MOG-A) 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. (NASDAQ:ESLT).
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. (NASDAQ:ESLT) is a defense technology company providing next-generation solutions across multiple domains, including airborne, land, and naval systems.
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