Ducommun Incorporated (DCO): Among The Best Performing Defense Stocks So Far in 2026

Ducommun Incorporated (NYSE:DCO) is among the 10 Best Performing Defense Stocks So Far in 2026. On May 18, Citigroup raised its price target on the stock to $167 from $141 and kept a Buy rating after the firm updated its model for companies in the aerospace and defense sector.

This follows RBC Capital’s May 13 update, which raised the price target to $155 from $150 and reiterated an Outperform rating after the company posted robust first-quarter fiscal 2026 results.

In a research note to investors, the firm noted that adjusted EBITDA had surpassed expectations by 16%. According to TipRanks, RBC Capital attributed the performance to lower-than-anticipated de-stocking in commercial aerospace.

As of the close of business on May 22, Wall Street has a Strong Buy rating on Ducommun Incorporated (NYSE:DCO) with an average share price upside potential of 12%.

The company reported a revenue of $209 million for Q1, increasing 9% year-over-year and led by strength in commercial aerospace and gains in the defense business. Gross margin grew 70 bps to 26.9%. Adjusted EBITDA was up 19% to $35.4 million, while adjusted net income stood at 75 cents per diluted share, compared to 23 cents during the same period in 2025.

Ducommun Incorporated (NYSE:DCO) provides manufacturing solutions to customers in the global aerospace, defense, military, space, and industrial markets, with its core expertise in Electronic Systems and Structural Systems. The stock is up 51% year-to-date, as of May 22.

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