Political drama in Washington around the Iran war, possible leadership shake ups and fresh scrutiny of economic policy has pushed defense and aerospace stocks back under the spotlight. That mix of risk and shifting priorities can reshuffle which companies attract capital and which get sidelined, so sitting on the sidelines entirely carries its own risk. This article unpacks 3 stocks from a defense and aerospace screener that appear positively exposed to this news flow.
The three stocks below are just a sample from this theme. The full screen surfaced 38 more U.S. defense and aerospace companies with equally compelling narratives that are not covered here. To go broader and identify your own highest conviction ideas, analyze the full universe with the U.S. Defense and Aerospace Stocks screener.
Cadre Holdings (CDRE)
Overview: Cadre Holdings manufactures protective gear and safety systems for first responders and government agencies, tightly linked to defense and public safety spending.
Market Cap: US$1.32b
Cadre Holdings gives this defense and aerospace screen exposure to the less glamorous but essential kit that keeps people alive when missions go wrong, which is exactly where politically charged security budgets tend to stay resilient and where small shifts in cost discipline can have an outsized impact.
"While record orders in armor, duty gear and EOD suggest continued demand for mission critical public safety equipment, the sharp fall in Q1 2026 net income to about US$2.0 million from US$9.2 million a year earlier and a 2.6% annual EPS contraction over two years indicate that higher volumes may still translate into weaker per share profitability if cost, mix and interest burdens persist, limiting the benefit to net margins and earnings."
For anyone watching Cadre Holdings, what happens if a single key assumption about future pricing power quietly shifts will matter a lot.
If that pricing power assumption is what you are testing, the full narrative for Cadre Holdings explains how Cadre Holdings could still compound value even if public safety budgets and margins begin to move independently.
Arxis (ARXS)
Overview: Arxis supplies electronic and mechanical components for mission critical defense and aerospace systems, from RF connectors to bearings and radar absorbing materials.
Operations: Arxis generates about US$849 million from Electronic Components and about US$1.07b from Mechanical Components, after a minor segment adjustment.
Market Cap: US$21.76b
Arxis plugs directly into the defense and aerospace supply chain, providing hardware that keeps missiles, radar and aircraft electronics working under stress. Earnings forecasts are strong and profitability has improved. The stock trades on a very high P/E, so a shift in how long markets are willing to pay that premium could matter a lot.
That premium only matters if you can see what sits behind it, so review the analysis report for Arxis to gauge whether Arxis’ valuation is stretching or just catching up.
Astronics (ATRO)
Overview: Astronics designs and builds avionics, power, lighting, and test equipment that sit directly on aerospace and defense platforms worldwide.
Operations: Astronics generates about US$863 million from Aerospace products and roughly US$79 million from Test Systems, after minor intersegment adjustments.
Market Cap: US$2.48b
Astronics gives you pure play exposure to the hardware inside defense aircraft and electronics test rigs, where contract quality and execution against a packed order book matter just as much as headline demand.
"Although Astronics is pursuing a multi year margin improvement plan supported by higher volumes, contract repricing, and facility consolidation, the parallel commitment to a five year ERP rollout and peak 2026 investment of about US$40 to 45m in capex plus US$15 to 17m in ERP spend risks tying up cash and creating execution friction that could cap further expansion in operating income and free cash flow margins."
For Astronics, what happens if a single pressure point in that cash hungry investment plan starts to squeeze margins will be crucial.
If you want to see how that pressure could flip from a drag into an accelerant, read the full narrative for Astronics for what the headline numbers may be masking.
Seeking Alternatives Beyond Defense Themes
Fresh ideas move first. By the time every investor spots a breakout, early momentum can already be flying. Scan curated lists while it matters and get in early.
- Spot cash generative businesses before the crowd by scanning the list of solid balance sheet and fundamentals (24 results) that filters for companies backing their story with numbers, not just headlines.
- Ride structural shifts in automation by reviewing the 89 robotics and automation stocks packed with operators building the hardware and software behind factories, warehouses, and next gen machinery.
- Position ahead of infrastructure upgrades by checking the 40 power grid technology and infrastructure stocks featuring companies tied to grid reliability, transmission build outs, and critical equipment demand.
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