Germany’s factory orders are rising, pointing to firmer demand for capital goods and electronics at a time when global security spending remains a key priority. That combination puts renewed attention on Aerospace and Defense stocks. Investors looking for exposure to companies that supply critical equipment, technology and services may find this screener useful. This article highlights three Aerospace and Defense stocks that may be worth a closer look.
The stocks covered below are just a short sample. The full screen surfaced 66 more Aerospace and Defense companies with equally compelling business narratives that are not discussed here. To identify and analyze those additional opportunities in detail, head straight into the Aerospace And Defense screener.
General Dynamics (GD)
Overview: General Dynamics is a large US aerospace and defense company that builds Gulfstream business jets, submarines, surface ships, combat vehicles and weapons systems. It also provides IT, cyber, communications and mission support services for military and government customers worldwide.
Operations: General Dynamics generates about US$13.8b from Aerospace, US$17.9b from Marine Systems, US$9.4b from Combat Systems and US$13.8b from Technologies, with most revenue coming from US$45.1b of sales in the United States.
Market Cap: US$104.2b
Investors watching Aerospace and Defense may want to pay attention to General Dynamics because it combines record backlog in submarines and business jets with a broad technology footprint in cyber, secure communications and mission IT. The company is paying a regular dividend, has earnings that analysts describe as high quality and trades on a P/E that is lower than many industry peers. At the same time, high net debt, reliance on external funding and execution risk in complex shipbuilding and tech contracts present important considerations. If you are looking for a large, diversified defense contractor with both potential benefits and meaningful risks, this is a story worth studying more closely.
General Dynamics’ record backlog and broad tech footprint may be masking what really matters for long term investors. Get the full picture in the analysis report for General Dynamics
Build your own defense contractor shortlist around General Dynamics
General Dynamics and the two other Aerospace and Defense stocks in this article all surfaced from a single screener, but the real advantage comes when you start customising the filters yourself. Use our flexible Screener to mix valuation, balance sheet, dividend and risk metrics, or tap into our curated Investing Ideas for ready-made shortlists that match different investing styles.
BWX Technologies (BWXT)
Overview: BWX Technologies manufactures highly specialized nuclear components, reactors and fuel for the U.S. Navy and other government programs, and also supplies equipment, services and materials for commercial nuclear power and medical uses worldwide.
Operations: BWX Technologies generates about US$2.4b from Government Operations and US$1.1b from Commercial Operations, partially offset by small eliminations between segments.
Market Cap: US$15.8b
BWX Technologies sits at the crossroads of defense, nuclear energy and medical isotopes, which helps explain why it is working with a record US$6b backlog and recently reported 18% revenue growth alongside a raised 2026 outlook. Multi year U.S. Navy propulsion contracts, expanding work in microreactors and advanced fuels, and active bids on new reactor projects give investors exposure to some of the most specialized nuclear manufacturing in the market. At the same time, a high P/E ratio, slower forecast revenue growth than the wider U.S. market and a balance sheet where all liabilities are funded by external debt mean you are paying a premium for that position. If you are comfortable weighing those trade offs, BWX Technologies may warrant a closer look.
BWX Technologies’ record backlog and raised 2026 outlook suggest potential growth that many investors may not be fully pricing in. See how its nuclear exposure, premium P/E and balance sheet interplay inside the analysis report for BWX Technologies
Kratos Defense & Security Solutions (KTOS)
Overview: Kratos Defense & Security Solutions is a defense technology company that supplies unmanned jet drones, hypersonic and rocket systems, satellite and space communications software, missile propulsion, and electronic warfare and training systems to U.S. and allied government agencies as well as commercial customers worldwide.
Market Cap: US$10.4b
Kratos Defense & Security Solutions has caught investors’ attention because it sits at the heart of unmanned systems, hypersonics and satellite ground software that are central to current defense modernization. Earnings grew very strongly over the past year and analysts expect earnings growth above 20% alongside improving margins, supported by a wave of recent contract wins in hypersonics, counter drone systems and space domain awareness. The trade off is a premium valuation, modest current profitability, heavy investment that is still weighing on free cash flow, and concentrated exposure to government budgets and key suppliers. For investors seeking exposure to some of the more advanced parts of defense technology, Kratos is a business where the potential upside is accompanied by execution and funding risks that may warrant closer scrutiny.
Kratos Defense & Security Solutions sits at the crossroads of drones, hypersonics and space software, yet the real story may be how growth and valuation are starting to decouple. See what analysts expect in the analyst forecasts for Kratos Defense & Security Solutions
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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