With inflation, interest rates and energy prices all in focus, many investors are looking for assets that are closely linked to long-term government spending and global trade flows. Aerospace and defense stocks sit at the intersection of security, high-end manufacturing and complex global supply chains. This can make this theme an appealing way to get exposure to these trends. This Aerospace And Defense screener filters for companies directly tied to aircraft, space systems and defense services, helping you quickly narrow the field. Ahead, you will see 3 stocks from this screener that may be worth a closer look.

Howmet Aerospace (HWM)

Overview: Howmet Aerospace is a Pittsburgh based manufacturer of high performance metal parts and fasteners that go into aircraft engines, airframes and heavy duty truck wheels, serving both commercial aviation and defense customers worldwide.

Operations: Howmet generates most of its revenue from Engine Products at US$4.6b, followed by Fastening Systems at US$1.8b, Engineered Structures at US$1.1b and Forged Wheels at US$1.1b, partly offset by US$18m of inter segment sales.

Market Cap: US$111.1b

Investors looking at Howmet Aerospace are getting exposure to high margin engine and fastening components that sit at the heart of commercial and defense aircraft build cycles. Recent results show 19% revenue growth and 42% adjusted EPS growth in Q1 2026. The company is leaning into automation, digital manufacturing and capacity expansions, which could support productivity and margins over time. High net margins around 20% and strong forecast ROE also add to the appeal. Set against that, the stock already trades on a rich P/E, carries meaningful debt, and has seen insider selling and very high executive pay. All of these factors raise questions about risk and alignment that investors may wish to weigh carefully.

Howmet Aerospace’s 19% revenue and 42% EPS growth in Q1 2026 could be masking an even bigger story about margins and capital returns, and the analysis report for Howmet Aerospace may reveal what the headline numbers miss

Mercury Systems (MRCY)

Overview: Mercury Systems is a U.S. based defense technology company that supplies high performance computing, sensor, communications and electronic warfare hardware to major defense contractors and aerospace customers, helping to power radar, surveillance and secure mission systems. Its offerings span individual chips and power amplifiers through to embedded processing boards and fully integrated subsystems used in modern military platforms.

Operations: Mercury Systems generates essentially all of its US$966.9m in revenue from Aerospace & Defense programs, with US$942.8m coming from the United States and a smaller contribution from Europe.

Market Cap: US$6.8b

Mercury Systems sits within the upgrade cycle of modern defense electronics, supplying secure, high performance edge computing and radar and electronic warfare hardware at a time when some governments are focusing on digitization and AI enabled systems. Recent orders, such as a multi year contract for 1,000 BuiltSECURE servers and partnerships around next generation FPGAs, support a growing backlog and better visibility. The company is still reporting losses and depends on higher risk external funding. Analysts expect earnings to move from a loss to positive territory with strong growth, but the stock already trades above some fair value estimates and insider selling indicates there are differing views on the execution and valuation trade off.

Mercury Systems’ losses, rich valuation and growing backlog hint at a story that is still taking shape, and the 1 key reward and 1 important warning sign could show how this setup might change faster than expected

Astronics (ATRO)

Overview: Astronics is a U.S. based aerospace and defense supplier that focuses on aircraft power, lighting, safety and connectivity systems, alongside specialized test equipment used by electronics manufacturers and government contractors worldwide.

Operations: Astronics generates the majority of its revenue from Aerospace at US$819.8m, with an additional US$67.5m from Test Systems and a small amount of intersegment eliminations.

Market Cap: US$3.5b

Astronics provides direct exposure to the ramp in global aircraft production, with its cabin power, lighting and connectivity hardware feeding into recurring retrofit and upgrade cycles as well as new builds. Recent results show sales of US$230.62m and net income of US$25.54m in Q1 2026. The company has been reducing lower margin activities and relying on its certification capability. At the same time, a very high P/E multiple, heavy reliance on commercial aerospace and higher risk funding, plus one off legal and restructuring costs, mean the stock carries meaningful execution and balance sheet risk that investors should weigh carefully.

Astronics’ ramping sales and high P/E suggest investors see more ahead, but the real tension is between growth and funding risk, and the 2 key rewards and 2 important warning signs (1 is major!) could show what the current share price is really pricing in

The three aerospace and defense stocks covered here are only a starting point, as the full screener has surfaced 68 more companies with equally compelling narratives across aircraft manufacturers, component suppliers and defense service providers in the Aerospace And Defense screener. With Simply Wall St, you can identify and analyze the specific catalysts, contract exposure and balance sheet profiles that matter to you, so you can focus on the highest conviction opportunities in this theme.

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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.