In this article, we will look at the 12 Best Aerospace and Defense Stocks to Buy According to Analysts.
Defense Spending Uncertainty
On February 13, CNBC reported that President Trump’s statement regarding a potential reduction in US defense spending triggered a drop in defense stocks. During a White House event, the President proposed cutting the defense budget in half, stating that there is no need for the United States to spend nearly $1 trillion on the military. He mentioned plans to discuss this idea with China and Russia in future meetings. This sent mixed signals regarding military spending. On the one hand, he has emphasized the need for a strong military and proposed initiatives like the “Iron Dome of America,” a missile defense system. On the other hand, he also suggested significant cuts to defense spending, aligning with broader efforts to reduce government expenditures.
To discuss this, TD Cowen’s Roman Schweizer joined CNBC for an interview on February 14. He noted that setting aside all the mixed signals and uncertainty around the sector, the government would increase defense spending. This will be a result of the reconciliation plan of the Senate and House, however, the magnitude of this increase is still unclear. Schweizer also noted that some members of both the House and Senate are pushing President Trump to increase defense spending to 4% or 5% of GDP. Moreover, US Secretary of Defense, Pete Hegseth, reiterated that US defense should be pegged at 3% of GDP. Schweizer highlighted that this forms an interesting baseline for a potential $40 billion to $60 billion increase in spending over the upcoming years.
Regardless of the uncertainty in the White House regarding increasing or decreasing defense spending, the industry has been redefining itself with the help of technology and AI. On February 21, Morgan Stanley released a report highlighting megatrends for the industry. The report highlights that innovations in unmanned drones, robotics, autonomy, and artificial intelligence are not only modernizing military operations but also influencing how nations allocate and grow their defense budgets. In 2023, global military expenditures reached a record high of $2.4 trillion, marking a 6.8% increase from the previous year, the steepest annual growth since 2009.
Morgan Stanley’s Global Investment Office views this resurgence in defense spending and technological innovation as an opportunity to enhance productivity and stimulate economic growth. They highlighted that the integration of new technologies can create investment opportunities not only in defense contractors but also in related sectors such as supply chains, transportation, manufacturing, energy, and cybersecurity.
With that let’s take a look at the 12 best aerospace and defense stocks to buy according to analysts.
A shot of a prototype aircraft taking to the skies, the symbol of the companies innovation in aerospace & defense.
Our Methodology
To curate the list of 12 best aerospace and defense stocks to buy according to analysts 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 30% upside in the next 12 months. After sorting the list by market capitalization, we cross checked the analyst upside from CNN and ranked the stocks in ascending order of this indicator. We have also added the hedge fund sentiment around each stock sourced from Insider Monkey’s Q4 2024 database. Please note that the data was recorded on March 27, 2025.
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).
12 Best Aerospace and Defense Stocks to Buy According to Analysts
12. Moog Inc. (NYSE:MOG-A)
Number of Hedge Fund Holders: 25
Analyst Upside Potential: 31.04%
Moog Inc. (NYSE:MOG-A) is an international company specializing in the design, manufacturing, and integration of precision control components and systems. It operates across four main segments including Space and Defense, Military aircraft, Commercial aircraft, and Industrial Applications.
During the fiscal first quarter of 2025, Moog Inc. (NYSE:MOG-A) reported strong financial results driven by growth in aerospace and defense businesses. Its net sales grew by 6% year-over-year to $910 million, fueled by an 8% rise in Space and Defense sales and a 15% increase in Military Aircraft sales. More notably, bookings reached a record $1.3 billion, driven by strong orders in Space and Defense as well as Commercial Aircraft.
Moreover, in January 2025, Moog Inc. (NYSE:MOG-A) announced securing a significant contract with Lockheed Martin to provide custom electromechanical actuators for the Patriot Advanced Capability-3 Missile Segment Enhancement program. This contract is valued at over $100 million and represents one of the largest awards in the history of the company’s Defense Division. Moog Inc. (NYSE:MOG-A) is one of the best aerospace and defense stocks to buy according to analysts.
11. BWX Technologies, Inc. (NYSE:BWXT)
Number of Hedge Fund Holders: 55
Analyst Upside Potential: 31.91%
BWX Technologies, Inc. (NYSE:BWXT) is a specialty manufacturer and service provider in the nuclear industry. It operates within two main areas, Government Operations and Commercial Operations. Under the Government Operations, the company focuses on manufacturing naval nuclear reactors and related nuclear fuel for the US Naval Nuclear Propulsion Program used in submarines and aircraft carriers. Whereas, within the Commercial operations it engages in designing and manufacturing commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and auxiliary equipment.
In the fiscal fourth quarter of 2024, BWX Technologies, Inc. (NYSE:BWXT) achieved record revenue of $746.3 million, growing 2.9% year-over-year. The net income stood at $71.1 million, after improving from $66.3 million in the prior year. Moreover, the company ended 2024 with a backlog of $4.8 billion, up 21% year-over-year, driven by large contract awards across both government and commercial segments.
The management noted that the company completed the expansion of its Innovation Campus in Lynchburg, Virginia, enhancing capabilities for designing and manufacturing microreactors and advanced nuclear fuels for defense and commercial applications. Moreover, BWX Technologies, Inc. (NYSE:BWXT) also made strategic investments in naval nuclear propulsion manufacturing plants to continue to meet the increasing demand for Virginia-class reactor cores and Columbia-class submarine production. It is one of the best aerospace and defense stocks to buy according to analysts.
10. Cadre Holdings, Inc. (NYSE:CDRE)
Number of Hedge Fund Holders: 12
Analyst Upside Potential: 35.00%
Cadre Holdings, Inc. (NYSE:CDRE) is an international leader in manufacturing and distributing safety and survivability equipment for first responders and other professionals in hazardous situations. Its core products range from body armor to explosive ordnance disposal equipment and more. The company also offers third-party products such as uniforms, optics, boots, firearms, and ammunition.
On March 13, Analyst Sheila Kahyaoglu from Jefferies maintained a Buy rating on the stock, with a price target of $40. The analyst rating was based on the strong performance of Cadre Holdings, Inc. (NYSE:CDRE) during Q4 2024. The company grew its quarterly revenue by 41% year-over-year, exceeding expectations by 3%. This was driven by successful acquisitions and robust performance in the Armor and Duty Gear segments. According to Kahyaoglu, this growth was impressive as the company bounced back from earlier challenges. Moreover, the analyst noted that the 2025 revenue guidance of Cadre Holdings, Inc. (NYSE:CDRE) aligns with Jefferies’ estimates. It is one of the best aerospace and defense stocks to buy according to analysts.
9. HEICO Corporation (NYSE:HEI-A)
Number of Hedge Fund Holders: 67
Analyst Upside Potential: 36.26%
HEICO Corporation (NYSE:HEI-A) is a technology-driven aerospace, industrial, defense, and electronics company that specializes in manufacturing jet engine and aircraft component replacement parts, as well as electronic equipment. The company operates through two main segments including the Flight Support Group and Electronic Technologies Group.
During the fiscal first quarter of 2025, HEICO Corporation (NYSE:HEI-A) reported record-breaking results. The net income increased by 46% year-over-year to $168.0 million, along with the net sales that grew 15% to reach $1.03 billion. The growth was driven by both of its segments as Flight Support Group increased its sales by 15% and the Electronic Technologies Group grew 16% during the same time. Notably, the Flight Support Group marked its eighteenth consecutive quarter of net sales growth. Management remains optimistic about sustained growth across both segments, supported by strong demand for defense products and ongoing acquisition opportunities aimed at expanding market share while maintaining financial discipline. HEICO Corporation (NYSE:HEI-A) is one of the best aerospace and defense stocks to buy according to analysts.
8. Ducommun Incorporated (NYSE:DCO)
Number of Hedge Fund Holders: 18
Analyst Upside Potential: 38.82%
Ducommun Incorporated (NYSE:DCO) is an international provider of innovative manufacturing solutions for the aerospace, defense, and industrial markets. It operates through two main segments including the Electronic System and Structural Systems. The Electronics System segment deals with designing, engineering, and manufacturing high-reliability electronic and electromechanical products that are used in aerospace and defense. Whereas, Structural Systems deal in large, complex contoured aero-structure components and assemblies.
On March 14, RBC Capital analyst Kenneth Herbert maintained a Buy rating on the stock with a price target of $72. During the fiscal fourth quarter of 2024, Ducommun Incorporated (NYSE:DCO) demonstrated significant financial and strategic progress towards its Vision 2027 strategy. The strategy focuses on increasing revenue from engineered products, optimizing operations, and expanding its presence in key markets. The company achieved a record full-year revenue of $786 million in 2024, reflecting a 3.9% increase year-over-year. The fiscal fourth quarter alone saw 2.6% growth to $197.3 million, marking the 15th consecutive quarter of year-over-year revenue growth.
The prospects of Ducommun Incorporated (NYSE:DCO) remain bright as the consolidated backlog stood at $1.06 billion at the end of Q4 2024 after growing by $67 million year-over-year. Moreover, the defense backlog increased by $98 million to $625 million. It is one of the best aerospace and defense stocks to buy according to analysts.
7. Loar Holdings Inc. (NYSE:LOAR)
Number of Hedge Fund Holders: 32
Analyst Upside Potential: 39.66%
Loar Holdings Inc. (NYSE:LOAR) is a diversified manufacturer and supplier of niche aerospace and defense components. It specializes in designing, manufacturing, and selling a wide range of products that support major aircraft platforms. The company serves three core end markets including commercial aerospace, business jet, and general aviation.
Loar Holdings Inc. (NYSE:LOAR) reported a significant increase in net sales for the third quarter of 2024, reaching $103.5 million. This represents a 25% year-over-year growth, driven by robust demand in both commercial and defense sectors. The company’s strong performance is attributed to its strategic execution and the growing demand for aerospace and defense components. For 2025, the company forecasts net sales between $470 million and $480 million.
It is actively expanding its portfolio through strategic acquisitions. A notable example is the planned purchase of LMB Fans & Motors for €365 million, which is expected to enhance the company’s specialized aerospace and defense component offerings. It is one of the best aerospace and defense stocks to buy according to analysts.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Loar Holdings Inc. (NYSE:LOAR) in its Q3 2024 investor letter:
“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Providing a 40% lift was Loar Holdings Inc. (NYSE:LOAR), a diversified manufacturer and supplier of niche aerospace and defense components. We first added Loar to the strategy on its IPO in April and continued building the position early this quarter. Later, Loar reported higher-than-anticipated revenues and earnings, then boosted its guidance for the rest of the year. Loar forecasted increased growth for all three of its end-markets: aerospace original equipment, aftermarket, and defense.”
6. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 24
Analyst Upside Potential: 46.03%
AeroVironment, Inc. (NASDAQ:AVAV) is a leading American defense contractor that specializes in designing, developing, producing, and supporting advanced robotic systems. These systems include Unmanned Aircraft Systems, Loitering Munition Systems, Unmanned Ground Vehicles, and more. The company serves the US Department of Defense and international allied governments and also offers solutions to commercial customers.
On March 25, Greg Konrad, an analyst from Jefferies, maintained a Buy rating on the stock with a price target of $190. Konrad highlighted that AeroVironment, Inc. (NASDAQ:AVAV) is projected to achieve significant revenue growth and is aiming for nearly $1 billion by FY26. This target looks achievable with the BlueHalo acquisition. The company’s growth is expected to be driven by its Loitering Munitions Systems and Medium Unmanned Aerial Systems, which have a broad opportunity pipeline. The analyst noted that AeroVironment, Inc. (NASDAQ:AVAV) has successfully navigated recent market challenges, including a strategic pivot away from Ukraine. It is one of the best aerospace and defense stocks to buy according to analysts.
5. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 34
Analyst Upside Potential: 53.75%
Archer Aviation Inc. (NYSE:ACHR) is an aerospace company specializing in the design and development of electric vertical takeoff and landing aircraft for urban air mobility networks. Its key technologies include Midnight Aircraft which is designed to carry four passengers and one pilot for short-distance trips of around 20 miles, with minimal charging time between flights. Whereas the Maker Aircraft is a two-seat technology demonstrator used to validate key technologies for the Midnight model.
In Q4 2024, Archer Aviation Inc. (NYSE:ACHR) unveiled a “Launch Edition” program with Abu Dhabi Aviation as its first customer. This program aims to establish a scalable and repeatable playbook for deploying Midnight aircraft in early adopter markets before receiving full FAA certification. Production of the first Midnight aircraft began at its ARC facility in Covington. The company plans to build up to 10 Midnight aircraft this year to support certification testing and deployments with key partners. Looking ahead, Archer Aviation Inc. (NYSE:ACHR) is also developing a hybrid aircraft in partnership with Anduril Industries Inc., targeting strong demand in the defense market and beyond.
The company maintained a strong balance sheet with over $1 billion in liquidity. This financial stability allows the company to execute its business strategies across both civil and defense sectors while exploring new opportunities in AI and other areas. Analysts expect more than 57% upside for the stock, making it one of the best aerospace and defense stocks to buy according to analysts.
4. Planet Labs PBC (NYSE:PL)
Number of Hedge Fund Holders: 19
Analyst Upside Potential: 60.57%
Planet Labs PBC (NYSE:PL) is a leading provider of global, daily satellite imagery and geospatial solutions. The company designs and operates a large fleet of Earth observation satellites, including the Dove, RapidEye, SkySat, and more. It serves multiple sectors, including agriculture, forestry, intelligence, education, finance, and government agencies. Their data helps these sectors monitor changes, optimize operations, and make informed decisions.
On March 25, Jason Gursky, an analyst from Citi maintained a Buy rating on the stock with a price target of $5. He noted that Planet Labs PBC (NYSE:PL) has a significant backlog that has doubled to $500 million year-over-year, indicating strong future revenue streams. This includes a recent contract to build and operate Pelican satellites for Japan’s JSAT. However, the company expects a short-term dip in profitability in FY26 due to investments in hardware construction and AI capabilities. However, it is poised for revenue acceleration and margin expansion in FY27. Revenue growth is projected to be around 10% in FY26 with expectation to more than double in FY27 as satellite construction gains momentum. The analyst anticipates a share price return of 31.9%. Planet Labs PBC (NYSE:PL) is one of the best aerospace and defense stocks to buy according to analysts.
Meridian Contrarian Fund stated the following regarding Planet Labs PBC (NYSE:PL) in its Q4 2024 investor letter:
“Planet Labs PBC (NYSE:PL) is a data and analytics company powered by its constellation of 200+ satellites that capture daily images of the entire Earth. This provides the company with a unique dataset which they combine with custom imaging capabilities to build applications for commercial and government customers. We invested in 2022 when significant investments the company made for future growth impacted near-term earnings. During the quarter, Planet Labs’ stock outperformed due to rising market recognition that their cost-effective and efficient imagery solutions were well-positioned to increase penetration in the U.S. defense sector. Optimism was further buoyed by the prospect of the incoming administration pursuing cost-cutting and efficiency initiatives. We increased our position during the quarter, confident in Planet Lab’s capacity for sustained growth.”
3. Eve Holding, Inc. (NYSE:EVEX)
Number of Hedge Fund Holders: 13
Analyst Upside Potential: 62.16%
Eve Holding, Inc. (NYSE:EVEX) is an aerospace company focused on developing solutions for Urban Air Mobility. The company operates through three main segments including eVTOL Development, Service and Operations Solutions, and Urban Air Traffic Management. It benefits from its connection to Embraer, leveraging over 50 years of aerospace expertise while maintaining a startup mindset to drive innovation in the UAM ecosystem.
On March 12, Analyst Amit Dayal of H.C. Wainwright maintained a Buy rating on the stock, with a price target of $6. Dayal noted that Eve Holding, Inc. (NYSE:EVEX) is on track with its commercialization timeline, focusing on achieving significant certification milestones. These include the first full-scale prototype flight test and the production initiation of certification prototypes in 2025. Moreover, the company’s business model, which includes direct sales of eVTOL units, maintenance services, and an urban air traffic management system, is projected to generate significant revenue growth. The company expects to reach over $1 billion in revenue by 2029-2030. To back this up the company has a robust order book of approximately 2,800 aircraft valued at $14 billion, indicating strong market interest in eVTOLs. Analysts see more than a 62% upside for the stock making it one of the best aerospace and defense stocks to buy according to analysts.
2. Intuitive Machines, Inc. (NASDAQ:LUNR)
Number of Hedge Fund Holders: 26
Analyst Upside Potential: 70.65%
Intuitive Machines, Inc. (NASDAQ:LUNR) is a diversified space exploration company that provides a range of space products and services to support sustained robotic and human exploration of the Moon, Mars, and beyond. The company has achieved significant milestones, including the first US commercial lunar landing since the Apollo missions, through its IM-1 mission with NASA’s CLPS initiative.
Intuitive Machines, Inc. (NASDAQ:LUNR) has experienced significant strategic and financial developments over the past year. It enhanced its technical capabilities, particularly in areas like space communications, navigation, and autonomy. These advancements were demonstrated through successful lunar missions, such as IM-1 and IM-2, which showcased reliable data transmission and precision navigation systems. Moreover, the company is diversifying its customer base and services beyond lunar missions. It is expanding into areas such as National Security Space and leveraging its technologies for orbital transfer vehicles and in-space mobility logistics.
Notably, the company secured significant contracts, including NASA’s Near Space Network Services contract valued at up to $4.8 billion. It is also exploring opportunities with other government agencies and has appointed a Senior Vice President of Data Services to capitalize on these opportunities. During fiscal 2024, Intuitive Machines, Inc. (NASDAQ:LUNR) reported a record fiscal year revenue of $228 million, exceeding previous guidance. It is one of the best aerospace and defense stocks to buy according to analysts.
1. Redwire Corporation (NYSE:RDW)
Number of Hedge Fund Holders: 11
Analyst Upside Potential: 130.77%
Redwire Corporation (NYSE:RDW) is a leading company operating in space infrastructure and innovation, serving civil, commercial, and national security sectors. It develops and supplies critical components and systems needed for space missions including avionics and sensors, power generators, radio frequency systems, and more. The company serves both US and international clients.
During fiscal 2024, Redwire Corporation (NYSE:RDW) achieved approximately 25% revenue growth, reaching a record $304.1 million. This growth was driven by strategic investments and increased demand for their space infrastructure solutions. As a result of increased demand, the company delivered 186 sensors, including sun sensors, star trackers, and cameras, to support various missions. It also increased its Roll-Out Solar Array (ROSA) contracts by 23.8% year-over-year.
Moreover, the company has expanded its global footprint by adding three new facilities in California and Poland, enhancing its production capabilities and market reach. The future outlook remains robust as Redwire Corporation (NYSE:RDW) secured $229.8 million in contract awards ending the year with a backlog of $296.7 million. It is the best aerospace and defense stock to buy according to analysts.
While we acknowledge the potential of RDW to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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