Oil prices remain sensitive to events in the Middle East, which keeps inflation expectations and defense priorities in focus for governments that rely on energy imports. That backdrop draws attention to companies in the Aerospace and Defense screener, which sit close to major spending decisions. For investors who do not want to sit on the sidelines, this article highlights 3 stocks from the screener that may warrant closer examination.

The 3 Aerospace and Defense stocks below are just a starting sample, and the full screen surfaced 67 more companies with equally compelling narratives that are not covered here. If you want to identify patterns quickly and analyze these businesses side by side, head straight to the Aerospace And Defense screener.

ATI (ATI)

ATI is a Dallas based producer of specialty materials and complex components used in aircraft engines, defense systems, medical devices and energy infrastructure. It earns about US$2.7b from its High Performance Materials & Components segment and around US$2.5b from Advanced Alloys & Solutions, highlighting a business that is balanced across premium alloys and finished parts. At a market value of roughly US$31.1b, ATI sits firmly in the large cap camp.

ATI attracts attention because it sits at the crossroads of aerospace, defense and energy transition, with long term contracts, a record US$4.4b backlog and strong AA&S margins. These factors hint at earnings quality that many rivals lack. At the same time, a rich P/E multiple and heavy use of debt mean you are paying up and accepting higher financial risk if demand softens or rates stay elevated. A key focus for investors is how growing defense orders, nuclear and turbine alloy demand, and ongoing productivity gains could affect ATI’s cash generation over the next few years, while customer concentration and high capital needs keep the risk side of the ledger very real.

ATI’s mix of premium alloys, record US$4.4b backlog and richer P/E suggests something in the story may be getting overlooked. Get the full picture in the 2 key rewards and 1 important warning sign

Build your own high quality alloy shortlist

ATI and the other two stocks in this article are examples of what can surface when you start filtering for quality, earnings drivers and balance sheet strength. Use our flexible Screener to combine metrics such as valuation, growth and risks for your own watchlist, or draw on pre-built themes in our Investing Ideas.

L3Harris Technologies (LHX)

L3Harris Technologies provides mission critical space systems, missile solutions and secure communications for defense and government customers worldwide. While its reported segment adjustment of US$22.9b is not broken out by business line here, the company’s scale is clear and it earns about US$17.7b from the United States and US$5.2b from international customers. With a market value of roughly US$53.9b, L3Harris sits in the large cap end of the Aerospace and Defense screener.

L3Harris Technologies sits at the heart of missile defense and space based surveillance, with recent contracts for AMDT3 missile tracking satellites, PAC 3 and THAAD propulsion and long term FAA tracking upgrades pointing to a backlog that investors are watching closely. The stock combines high quality earnings, an analyst view that it trades well below estimated fair value and a 1.75% dividend, yet it also carries high debt levels and exposure to fixed price contracts and government budgets. If you want exposure to defense spending, missile systems and secure communications, L3Harris offers a focused way to do it. The key consideration is whether its growth and risk profile fit your investment objectives and risk tolerance.

L3Harris appears to be a classic case of quality earnings, and its 1.75% dividend may be masking something in plain sight. Get the full story in the 6 key rewards and 1 important warning sign

Redwire (RDW)

Redwire is a Jacksonville based space infrastructure company that supplies sensors, avionics, in space manufacturing platforms and uncrewed systems to government and commercial customers. It earns about US$208.9 million from its Space segment and roughly US$217.4 million from Defense Tech, giving it a relatively balanced mix between orbital hardware and defense focused technology, and is valued at around US$3.3b.

Redwire sits at the intersection of space exploration, defense and emerging microgravity drug development, with record Q2 2026 revenue of US$117.1 million, record backlog and expanding facilities in Huntsville and Georgetown supporting future projects. Analysts have set price targets above the current share price, yet the company is still reporting losses, carries a high valuation on sales and has leaned on equity raises and borrowings, which increases risk if contracts or margins disappoint. For investors comfortable with a high risk high reward profile, Redwire’s mix of space and defense contracts, SpaceMD drug research missions and uncrewed systems could be worth a closer look, particularly in light of its reported backlog and analyst forecasts.

Redwire’s space and defense story is accelerating, but its losses, rich sales multiple and reliance on fresh capital leave big questions. Get the context in the 2 key rewards and 3 important warning signs (2 are major!)

Seeking Fresh Alternatives Before Others Do

Markets move fast and the best ideas rarely stay under the radar for long. Spot fresh momentum, identify potential breakouts before the crowd and act now.

• Spot income workhorses with strong cash flow engines and rely on the 8 dividend fortresses to see which payouts still look supported while it matters.
• Hunt for quality on sale and scan the 49 high quality undervalued stocks to find companies where fundamentals and current pricing may be out of sync.
• Track the picks powering digital assets and use the 19 cryptocurrency and blockchain stocks to see which stocks are leveraged to blockchain and cryptocurrency adoption before momentum increases.

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.