Question 1

What are the best aerospace & defense stocks in 2026?

Accepted Answer

Based on AI conviction analysis, the top best aerospace & defense stocks include TDG, TXT, GD, HWM, LMT. Each stock is scored on quality, fair value, and risk-reward asymmetry.

Question 2

How are best aerospace & defense stocks ranked?

Accepted Answer

Stocks are ranked by AI conviction score (1-10) using fundamental analysis: DCF valuation, earnings quality, Monte Carlo scenarios, and risk-reward asymmetry. Each stock also receives a quality grade (A-F) and a rating from Strong Buy to Avoid.

#	Ticker	Company	Rating	Convex Score	Fair Value	Upside	Quality
1	TDG	TransDigm Group Incorporated	Score B	10/10	$1,465	+19.8%	B	View
2	TXT	Textron Inc.	Score A	10/10	$161	+80.0%	B	View
3	GD	General Dynamics Corporation	Score A+	10/10	$570	+43.9%	A	View
4	HWM	Howmet Aerospace Inc.	Score B	10/10	$187	-34.2%	A	View
5	LMT	Lockheed Martin Corporation	Score A+	10/10	$749	+24.2%	A	View
6	RTX	RTX Corporation	Score A	10/10	$290	+29.3%	C	View
7	NOC	Northrop Grumman Corporation	Score B	10/10	$716	+23.8%	B	View
8	CW	Curtiss-Wright Corporation	Score A	10/10	$607	-12.6%	A	View
9	HEI	HEICO Corporation	Score C	10/10	$290	-20.3%	A	View
10	GE	GE Aerospace	Score B	9/10	$238	-35.2%	B	View
11	BWXT	BWX Technologies, Inc.	Score B	9/10	$187	+11.0%	B	View
12	HONAV	Honeywell Aerospace Inc. Common Stock When Issued	Score A	8/10	$279	+26.5%	B	View
13	LHX	L3Harris Technologies, Inc.	Score B	8/10	$457	+59.3%	D	View
14	AVAV	AeroVironment, Inc.	Score B (Speculative)	6/10	$391	+107.0%	B	View
15	SPCX	Space Exploration Technologies Corp.	Score A (Speculative)	6/10	$195	+40.5%	B	View
16	HONA	Honeywell Aerospace Inc	Score A	6/10	$394	+133.8%	C	View
17	AXON	Axon Enterprise, Inc.	Score B	5/10	$287	-49.7%	B	View
18	BA	The Boeing Company	Score D	3/10	$236	+1.2%	D	View
19	RKLB	Rocket Lab USA, Inc.	Score D (Speculative)	2/10	$66	-17.4%	B	View
20	KTOS	Kratos Defense & Security Solutions, Inc.	Score D	0/10	$33	-46.4%	D	View

Best Aerospace & Defense Stocks

Methodology