Global food prices have ticked higher according to the FAO Food Price Index, and that keeps long term demand for secure supply chains firmly in focus. Aerospace and defense companies often sit at the heart of this security puzzle. For investors, that creates a clear theme to explore right now. This article highlights three stocks from the Aerospace And Defense screener that reflect this opportunity.

The stocks featured below are just a starting sample, and the full screen surfaced 68 more aerospace and defense companies with equally compelling narratives that are not covered in this article. If you want to go deeper into this theme, head straight to the Aerospace And Defense screener to identify ideas, compare fundamentals, and analyze which opportunities best fit your own criteria.

ATI (ATI)

Overview: ATI Inc. produces specialty metals and advanced components such as titanium, nickel and cobalt alloys, and precision forgings that feed into high demand areas like commercial jet engines, defense platforms, medical devices, and energy infrastructure worldwide.

Market Cap: $31.0b

ATI provides exposure to high value aerospace and defense materials at a time when airlines, engine makers, and defense programs are placing long term orders, supported by a record $4.4b backlog and raised 2026 guidance. The company is leaning on its Advanced Alloys & Solutions and High Performance Materials & Components segments to push margins higher, with defense revenue up strongly and management describing AA&S as a durable earnings engine. Earnings growth and high ROE indicate strong underlying profitability. However, the stock trades on a rich P/E and carries meaningful debt, which can pressure cash flow in tougher conditions. For investors, ATI represents a combination of earnings momentum and multi year contract visibility, balanced against valuation and balance sheet risk that warrant close scrutiny.

ATI’s earnings momentum and multi year contract visibility raise a clear question about how much is already priced in. Get the full story from the 2 key rewards and 1 important warning sign and see what could shift this balance next.

Build your own aerospace and defense shortlist

ATI and the other two stocks in this article are examples of what can surface when you filter for factors such as contract visibility, balance sheet strength, and returns on capital. Use our flexible Screener to set your own rules, or tap into ready made themes with our Investing Ideas.

Axon Enterprise (AXON)

Overview: Axon Enterprise builds public safety technology, combining TASER conducted energy devices, body and in car cameras, drones, and virtual reality training hardware with cloud software that helps agencies capture, store, and analyze video and digital evidence. Its platform is used by first responders and government agencies worldwide to manage incidents, improve accountability, and coordinate responses.

Market Cap: $46.4b

Axon Enterprise gives you direct exposure to the shift in public safety toward cloud software, AI tools like Draft One, and connected hardware such as TASER devices, body cameras, and counter drone systems. Annual recurring revenue has reached $1.6b and software and services revenue is growing strongly, yet the stock has been under pressure after Q2 2026 as margin compression, heavier investment, and negative free cash flow raise questions about timing and durability of profits. Add in a high P/S multiple, reliance on government budgets, and regulatory scrutiny of surveillance and AI, and the risk reward trade off is clear. The real question is whether Axon’s ecosystem and global bookings pipeline justify looking past those near term bumps.

Axon Enterprise’s accelerating shift toward cloud and AI tools comes at a time when its margin story is under pressure and may be misunderstood by many investors. Get the full context in the analysis report for Axon Enterprise for what could change next.

York Space Systems (YSS)

Overview: York Space Systems designs, builds, and operates small satellites and constellations for U.S. government and commercial customers, using standardized S CLASS, LX CLASS and M CLASS platforms and software to offer end to end mission services across the full space mission lifecycle.

Operations: York Space Systems currently generates about $396 million in revenue from its Aerospace & Defense segment, all from customers in the United States.

Market Cap: $1.5b

York Space Systems gives you pure play exposure to proliferated low earth orbit constellations at a time when U.S. defense programs such as the SDA data network are moving from early awards into repeat production, with more than 40 spacecraft expected across recent lots. The stock is priced below some fair value estimates and analyst targets. That potential upside sits alongside questions around reliance on firm fixed price contracts, high external borrowing, and a board that is still bedding in. With Q2 results and a CFO transition scheduled for mid August, the next update may be important for how this story develops.

York Space Systems sits at the crossroads of repeat LEO contracts and valuation questions that many investors may be underestimating. Scan the 4 key rewards and 1 important major warning sign to see what the next contract cycle might really mean.

Seeking Fresh Alternatives Beyond Defense?

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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.