Aerospace and defense stocks sit at the crossroads of global trade, security spending and long-cycle industrial projects, which can matter when growth signals, rates and inflation expectations keep shifting across regions. With central banks taking different paths and consumer confidence moving unevenly from the US to Asia and Latin America, some investors are looking for businesses tied to long-term government and corporate contracts rather than short-lived consumer trends. This Aerospace And Defense screener focuses on companies that manufacture or support this sector, and the rest of the article will highlight 3 stocks from the list that stand out for further research.

ATI (ATI)

Overview: ATI is a Dallas based materials company that supplies high performance titanium, nickel and specialty alloys, along with complex forged and machined components, for aircraft engines, defense systems, medical devices and industrial energy equipment worldwide.

Operations: ATI generates most of its revenue from its High Performance Materials & Components segment at about US$2.7b and its Advanced Alloys & Solutions segment at about US$2.4b, with intersegment sales reducing the reported total.

Market Cap: US$26.9b

ATI stands out in aerospace and defense because it sits deep in the supply chain, supplying critical alloy materials and precision engine components under long term contracts with major aircraft and defense customers, while also tapping demand from medical and energy transition projects. Analysts highlight solid earnings growth expectations and strong ROE; yet the stock trades on a high P/E and above one DCF estimate, so you are paying up for quality and future cash generation. With meaningful buybacks, recent index inclusions and fresh capacity investments, ATI presents both opportunity and execution risks that investors may want to assess carefully before deciding how it fits in a portfolio.

ATI’s accelerating contract pipeline and premium P/E hint that the market may be pricing in more than just steady alloy demand, so it is worth reviewing the 2 key rewards and 1 important warning sign to see what could upset or confirm that story.

Saab (OM:SAAB B)

Overview: Saab is a Stockholm based defense and security company that supplies fighter aircraft, submarines, missile and combat systems, radars, and cyber and consulting services to military and civil customers across Sweden, Europe and other international markets.

Operations: Saab generates most of its revenue from Surveillance at about SEK28.9b, Dynamics at about SEK21.2b and Aeronautics at about SEK19.8b, with Kockums at about SEK9.9b, Combitech at about SEK5.2b and smaller corporate and segment adjustments rounding out the total.

Market Cap: SEK268.3b

Saab draws attention in aerospace and defense because it combines high exposure to rising global and European defense budgets with a growing order book across radars, missiles, submarines and airborne early warning systems, including a SEK47,000m Polish submarine deal and multiple recent air defense and training contracts. Earnings growth has been strong, margins are improving and analysts expect solid revenue and profit expansion. However, the stock already trades on a premium P/E and relies heavily on government customers and external borrowing, which can introduce policy and funding risk. With heavy upfront spending on AI enabled platforms and digitalization, plus recent insider selling, investors who want exposure to this theme may want to look closely at how much future growth is already in the price.

Saab’s surging order book and premium P/E raise a clear question: is the market fully pricing the story, or missing key details buried in the 2 key rewards and 1 important warning sign?

Redwire (RDW)

Overview: Redwire is a Jacksonville based space infrastructure company that supplies sensors, avionics, software and in space manufacturing platforms used in satellites, defense systems and microgravity research for government and commercial customers in the US, Europe and other regions.

Operations: Redwire generates about US$210.4m of revenue from its Space segment and about US$160.6m from Defense Tech, with around US$210.0m coming from the US market, US$136.2m from Europe and US$24.7m from other regions.

Market Cap: US$2.2b

Redwire attracts attention in aerospace and defense because it sits at the crossroads of fast growing areas such as commercial satellites, defense UAS and in space manufacturing. The company is backed by a growing backlog and new products such as microgravity biotech platforms. At the same time, the stock comes with real tension points, including ongoing losses, heavy reliance on government contracts, recent questions on internal controls and the potential for further equity dilution after an at the market offering plan. If you are drawn to the space theme but cautious about cash burn and execution risk, Redwire is a company where the details behind the contracts, backlog quality and funding options are particularly important.

Redwire’s accelerating space contracts and in space manufacturing story can look exciting, but the real tension sits inside the 1 key reward and 3 important warning signs (2 are major!) where one key funding twist could change how this stock is viewed

The three aerospace and defense stocks in this article are just a starting point, as the full Aerospace And Defense screener surfaces 297 more companies with equally compelling narratives across aircraft, defense systems and space infrastructure. Use Simply Wall St to unlock filters around contract backlogs, balance sheet strength and valuation, so you can identify and analyze stocks that align with your own view on this sector.

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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.