Government bond yields in major markets are reacting to higher oil prices and Middle East risks. That keeps attention on defense spending and the companies that support it. Aerospace and defense stocks sit at the center of this conversation, which creates a focused hunting ground for investors looking for resilient demand. This article highlights three stocks from our Aerospace And Defense screener that stand out on fundamentals and business quality.

The three aerospace and defense stocks that follow are only a sample from a much larger opportunity set, with the full screen surfacing 301 more companies with equally detailed stories that are not covered here. To identify and analyze the highest conviction ideas for your own watchlist, head straight to the Aerospace And Defense screener.

ATI (ATI)

Overview: ATI Inc. produces high performance specialty metals and complex components, supplying titanium, nickel and cobalt alloys, advanced powders and precision parts into aerospace, defense, medical, energy and industrial markets worldwide.

Operations: ATI generates about US$2.7b of revenue from High Performance Materials & Components and US$2.5b from Advanced Alloys & Solutions, with the United States contributing roughly US$2.8b of reported sales.

Market Cap: US$31.0b

ATI sits at the intersection of rising aerospace, defense and energy transition demand, backed by long term contracts with Boeing and Airbus, a record US$4.4b backlog and a shift toward higher value alloys and components that support margins and cash generation. Recent results showed double digit revenue growth, a jump in adjusted EBITDA, raised full year guidance and expanding profitability in both main segments. Some analysts have raised their targets, which may reflect these developments. The trade off is meaningful balance sheet risk from high debt and a valuation that screens richer than the wider Aerospace & Defense industry. ATI may therefore appeal more to investors who are comfortable paying a higher valuation for earnings quality and multi year contract visibility, while keeping a close eye on leverage and customer concentration.

ATI’s growth story is tied to premium alloys, record backlog and richer margins, yet the balance sheet and valuation still raise questions. Get the full picture in the 2 key rewards and 1 important warning sign

Build your own ATI-style contract and quality screener

ATI and the other two stocks in this article all surfaced from our screener, but the real value comes when you set the rules yourself. Use our flexible Screener to combine filters such as valuation, future growth, quality and risk, or start with any of our curated Investing Ideas.

L3Harris Technologies (LHX)

Overview: L3Harris Technologies delivers mission critical space, missile and communications systems to government and commercial customers, from missile warning satellites and hypersonic propulsion to tactical radios and night vision equipment. The company sells heavily into the U.S. Department of Defense and allied governments, supporting command, control and surveillance across land, sea, air and space.

Operations: L3Harris generates about US$23.0b of revenue, with roughly US$17.7b from the United States and US$5.2b from international customers.

Market Cap: US$53.4b

L3Harris Technologies sits at the heart of missile defense and secure communications, with recent contract wins in hypersonic missile propulsion, missile tracking satellites and U.S. and NATO communications helping build a record backlog and higher 2026 guidance. At the same time, investors need to weigh this against high debt, relatively low current returns on equity and exposure to fixed price development contracts where cost overruns sit with the company. For readers looking for a combination of solid order visibility, exposure to space and missile programs and a stock that screens as good value on P/E and cash flow metrics versus U.S. Aerospace & Defense peers, L3Harris may warrant a closer look to see how those risks and rewards balance out for their own portfolio.

Accelerating missile and space exposure at L3Harris Technologies might look fully reflected in the share price, yet the stock still screens as good value on P/E and cash flow. See how the full risk reward trade off stacks up in the 5 key rewards and 1 important warning sign

Redwire (RDW)

Overview: Redwire is a space and defense technology company that supplies sensors, avionics, in space manufacturing, microgravity research facilities and uncrewed aerial systems to government and commercial customers in the United States, Europe and other international markets.

Operations: Redwire generates about US$208.9 million of revenue from its Space segment and US$217.4 million from Defense Tech, with roughly US$245.5 million coming from the United States and US$149.4 million from Europe.

Market Cap: US$3.4b

Redwire provides direct exposure to the build out of space and defense infrastructure, with Q2 2026 revenue of US$117.1 million, record backlog of US$542.1 million and reaffirmed full year revenue guidance suggesting demand for its Space and Defense Tech segments. At the same time, the company is still loss making, has relied on equity issuance and carries a higher P/S multiple than much of the Aerospace & Defense group. As a result, execution on new facilities, complex contracts and microgravity pharma ventures will be important. If you are interested in a higher risk space and defense growth story backed by expanding facilities and contract momentum, Redwire may warrant a closer look to see whether that trade off suits your portfolio.

Redwire’s contract momentum and space ambitions sit alongside losses, fresh equity and a higher P/S. Get the full context in the analysis report for Redwire

Seeking Alternatives Beyond Aerospace Picks

Fresh ideas move fast. While attention sits on ATI, L3Harris and Redwire, other themes could be building quiet momentum under the radar for now. Consider researching these areas early to understand the potential opportunities and risks.

• Look for income opportunities that might behave differently from growth-oriented stocks by scanning the curated 9 dividend fortresses.
• Track companies that could be involved in the AI build out by reviewing the hand picked 56 AI infrastructure stocks.
• Explore potential inflation hedges and safe haven exposure by checking the focused 29 elite gold producer stocks.

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.