Why These Defense Stocks Are Declining This Week

1. Sidus Space, Inc. (NASDAQ:SIDU)

Weekly Decline: -19.80%

Sidus Space, Inc. (NASDAQ:SIDU) is engaged in the design, manufacture, launch, and data collection of satellites. It serves aerospace, commercial space, and defense industries.

The stock surged 12% last week, following the announcement of the successful launch and deployment of LizzieSat (LS-3) into Low Earth Orbit. However, shares have fallen this week, in what is being seen as a sign of market correction.

From a broader perspective, 2025 has been a difficult year for Sidus Space, Inc. (NASDAQ:SIDU), with its share price declining 68% year-to-date, with the weak financial position being one of the major drivers of the stock’s poor performance. The company has made losses during the first three quarters of fiscal 2024. Its gross profit margin stood at just 2% during Q3 2024 – the most recent declared results.

Overall, Sidus Space, Inc. (NASDAQ:SIDU) ranks first among the defense stocks that are declining this week. While we acknowledge the potential of defense companies, 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 SIDU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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