Aerospace and defense stocks sit at the crossroads of global supply chains, government spending and long-cycle manufacturing, which can appeal to investors looking for themes that are not tied only to consumer demand. With inflation pressures linked to energy, transport and materials, plus mixed manufacturing signals across Europe and Asia, many investors are reassessing where resilient orders and long-term contracts might provide some stability. This Aerospace and Defense screener filters for companies directly involved in supplying or servicing the sector’s aircraft, space systems and defense programs. Below, the article highlights 3 stocks from the screener that stand out for closer research.

ATI (ATI)

Overview: ATI Inc. produces specialty metals and complex components such as titanium and nickel superalloys that go into commercial jet engines, defense systems, medical devices and energy infrastructure, serving customers that need materials to perform reliably in extreme conditions.

Operations: ATI generates about US$2.7b from its High Performance Materials & Components segment and roughly US$2.4b from Advanced Alloys & Solutions, with smaller intersegment sales adjustments.

Market Cap: US$26.9b

ATI sits in the sweet spot of the Aerospace and Defense screener, with long term contracts across Boeing, Airbus and key defense programs helping support higher margin materials and components while recent Q1 2026 results showed earnings improving even on modest revenue growth. At the same time, its strong ROE and history of high earnings growth are set against a rich valuation and a balance sheet that relies heavily on debt, which means the market is already pricing in a lot of optimism. With capacity expansions, active buybacks and index inclusion also in play, ATI is a stock where the mix of growth potential and execution risk deserves a closer look before you decide how it fits your portfolio.

ATI’s accelerating earnings, rich valuation and heavy debt load raise an obvious question: are investors focusing on the right trade off between upside and balance sheet risk in the 2 key rewards and 1 important warning sign

Axon Enterprise (AXON)

Overview: Axon Enterprise builds public safety technology, combining its TASER conducted energy devices, body and in-car cameras, drones and training tools with cloud software that lets agencies capture, store and analyze digital evidence. Its platform is used by first responders, governments and enterprises to manage incidents, reduce reliance on lethal force and handle growing volumes of video and data.

Operations: Axon Enterprise generates about US$1.7b from its Connected Devices segment and roughly US$1.3b from Software and Services, with most of its US$3.0b revenue coming from the United States and a smaller but meaningful share from other countries.

Market Cap: US$45.2b

Axon Enterprise stands out in the aerospace and defense screener because it blends fast growing software subscriptions with hardware that agencies already rely on in the field, supported by Q1 2026 revenue of US$807.3m and annual recurring revenue of US$1.49b. The story that interests many investors is the mix of AI driven products, rising international and federal demand, and forecasts for strong earnings and revenue growth, set against a high valuation, thinner recent profit margins and reliance on government budgets and external borrowing. If you want to understand whether Axon’s AI, counter drone and cloud offerings can justify its premium pricing, while balancing regulatory and competition risks, the full thesis goes well beyond the headlines.

Axon Enterprise’s accelerating mix of AI tools, drones and cloud contracts can make the current valuation look either stretched or early, and the real clue may sit inside the analyst forecasts for Axon Enterprise

L3Harris Technologies (LHX)

Overview: L3Harris Technologies provides mission critical space, missile and communications systems for governments and commercial customers, from missile warning satellites and hypersonic propulsion to tactical radios, secure networks and night vision equipment, with a long history in defense technology dating back to 1895.

Operations: L3Harris generates about US$17.5b from the United States and roughly US$5.0b from international customers.

Market Cap: US$54.1b

L3Harris Technologies is attracting attention because it is positioned in areas many defense budgets are prioritizing, including missile defense, hypersonic systems and secure communications. Recent contract awards such as PAC 3 propulsion, VAMPIRE counter drone systems and Artemis II space hardware illustrate how broadly its technology is used across programs. Earnings guidance for 2026, a 1.71% dividend and an analyst consensus that indicates potential upside from today’s share price are balanced against meaningful debt and the risks of fixed price development work in complex projects. For investors comparing defense stocks in this screener, a key consideration is whether L3Harris’s mix of space, missile and communications exposure, together with potential margin improvement from its LHX NeXt cost program, adequately compensates for its balance sheet and contract risk profile.

L3Harris Technologies sits at the intersection of missile defense, space hardware and secure communications, yet the real swing factor may be hiding in the 6 key rewards and 1 important warning sign

The three Aerospace and Defense stocks covered here are just a starting point, with the full screener surfacing 66 more companies that attach equally compelling narratives to contracts, backlogs, ROE profiles and balance sheet strength in the Aerospace And Defense screener. With Simply Wall St, you can unlock the full list, then identify and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction opportunities in this theme.

Take Control of Your Investment Journey

If L3Harris Technologies or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond Defense?

Fresh stock ideas can move from quiet accumulation to full breakout before most investors even notice. Use these curated lists while the data still matters and consider them promptly.

• Target reliable cash flows and sturdy finances by scanning a curated list of solid balance sheet and fundamentals (48 results) that helps you focus on businesses built to handle shocks without constant drama.
• Explore structural momentum in energy infrastructure by checking a hand picked set of 89 nuclear energy infrastructure stocks before renewed interest directs attention and liquidity elsewhere.
• Look for compounding potential early by tracking 20 top founder-led companies where aligned leadership, ownership and a long term focus can support consistent execution while the crowd is still looking away.

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.