Space & Defense Sector

Best Space & Defense Stocks in 2026

The Space & Defense sector features companies operating across aerospace, military systems and space technology. Military spending has increased in response to geopolitical tensions (particularly in Europe), boosting demand for advanced equipment and systems. Meanwhile, commercial aviation is experiencing a strong post-COVID recovery, with rising travel demand putting pressure on manufacturers already constrained by complex supply chains and limited production capacity. The sector benefits from long-term contracts and dual growth drivers (civil and military).

Top picks11
Total market cap$1.26T
Avg YTD+3.9%
Avg 3-Year+120.1%
Avg net margin9.7%

Sector Highlights

Top picks by key criteria across the sector

Top YTD Performer
Lockheed Martin

Lockheed Martin

LMT

+22.7%

Year-to-date return

Strongest Fundamentals
Safran

Safran

SAF.PA
ProfitabilityGood
LiquidityWeak
LeverageExcellent
Cash FlowExcellent
ValuationGood

Proprietary section scores

Market Leader
RTX

RTX

RTX

$259.75B

Market cap (USD equivalent)

Sector Performance

Compare returns and net margin across our picks — toggle between periods

Lockheed MartinLockheed Martin
+22.7%
BAE SystemsBAE Systems
+21.3%
Northrop GrummanNorthrop Grumman
+16.8%
HoneywellHoneywell
+13.9%
RTXRTX
+3.3%
ThalesThales
+2.3%
Gen DynamicsGen Dynamics
+0.6%
BombardierBombardier
-2.7%
RheinmetallRheinmetall
-8.1%
SafranSafran
-8.2%
AirbusAirbus
-19.2%

Our Top 11 Space & Defense Picks

Sorted by market cap — our best-in-class selection for long-term investors

RTX

RTX

RTX
NYSE
193.51USD-0.67%
YTD +3.3%
Airbus

Airbus

AIR.PA
PAR
164.56EUR-1.11%
YTD -19.2%
Honeywell

Honeywell

HON
NASDAQ
223.10USD+0.04%
YTD +13.9%
Lockheed Martin

Lockheed Martin

LMT
NYSE
609.82USD-1.04%
YTD +22.7%
Safran

Safran

SAF.PA
PAR
282.10EUR-1.81%
YTD -8.2%
Northrop Grumman

Northrop Grumman

NOC
NYSE
683.89USD+0.57%
YTD +16.8%
Gen Dynamics

Gen Dynamics

GD
NYSE
345.36USD-0.58%
YTD +0.6%
BAE Systems

BAE Systems

BA.L
LSE
2,127.00GBP-0.61%
YTD +21.3%
Rheinmetall

Rheinmetall

RHM.DE
XETRA
1,471.50EUR-0.78%
YTD -8.1%
Thales

Thales

HO.PA
PAR
240.30EUR+0.50%
YTD +2.3%
Bombardier

Bombardier

BBD-B.TO
TSX
234.15CAD-2.33%
YTD -2.7%

Fundamental Analysis Comparison

Side-by-side view of all 5 proprietary section scores — hover a cell to see the exact score

CompanyProf.Liq.Lev.CFVal.
RTX

RTX

RTX

W
A
G
E
A
Airbus

Airbus

AIR.PA

W
W
E
E
G
Honeywell

Honeywell

HON

G
G
W
E
G
Lockheed Martin

Lockheed Martin

LMT

G
A
W
E
G
Safran

Safran

SAF.PA

G
W
E
E
G
Northrop Grumman

Northrop Grumman

NOC

A
A
A
E
G
Gen Dynamics

Gen Dynamics

GD

A
A
E
E
G
BAE Systems

BAE Systems

BA.L

A
A
G
E
A
Rheinmetall

Rheinmetall

RHM.DE

A
A
E
E
P
Thales

Thales

HO.PA

A
W
E
E
G
Bombardier

Bombardier

BBD-B.TO

A
A
W
E
G
Excellent(4.2–5.0)
Good(3.4–4.2)
Average(2.6–3.4)
Weak(1.8–2.6)
Poor(1.0–1.8)
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