Energy prices remain closely tied to Hormuz Strait access talks, which keeps attention on supply security and global defense capabilities. That spotlight on geopolitical risk makes Aerospace and Defense stocks more interesting for investors who want direct exposure to these long running themes. This article walks through three stocks from our Aerospace And Defense screener that stand out on fundamentals, business quality, and potential resilience across different market conditions.

The three Aerospace and Defense stocks in this article are just a starting point, and the full screen surfaced 67 more companies with equally compelling narratives that are not covered here. To identify and analyze the highest conviction ideas in this space, head straight into the Aerospace And Defense screener.

Axon Enterprise (AXON)

Overview: Axon Enterprise builds public safety technology such as TASER conducted energy devices, body and in-car cameras, drones, and a suite of cloud software that helps agencies capture, store, manage, and analyze video and digital evidence across US and international markets.

Operations: Axon generates about US$1.8b in revenue from Connected Devices and around US$1.4b from Software and Services, with roughly US$2.6b coming from the United States and about US$600 million from other countries.

Market Cap: US$42.1b

Axon Enterprise provides direct exposure to the shift toward AI powered, cloud based public safety tools, backed by fast growing products like Draft One, TASER 10, Axon Body 4 and the Dedrone counter drone platform, which recently passed US$100 million in quarterly revenue. The company is focusing on long term contracts and recurring SaaS revenue, supported by a reported US$15.1b in future contracted bookings and an expanded five year bookings pipeline. At the same time, investors need to weigh margin pressure from a heavier services mix, a recent drop in net profit margin to 6.2%, and significant insider selling. For those evaluating the trade off between growth, premium pricing, and risk, Axon may warrant closer examination.

Axon Enterprise’s fast growing cloud and device ecosystem sits on a large contracted bookings base, yet margin pressure and insider selling complicate the story. Get the full context in the 1 key reward and 3 important warning signs

Build your own public safety and defense shortlist

Axon Enterprise and the other two Aerospace and Defense stocks in this article all surfaced from a single set of filters, but the real value comes when you shape the rules yourself. Use our customizable Screener to combine metrics like valuation, future growth, balance sheet strength, and risks, or tap into our curated Investing Ideas for ready made starting points.

Redwire (RDW)

Overview: Redwire is a space infrastructure company that supplies sensors, avionics, cameras, in-space manufacturing systems, uncrewed aerial systems, and microgravity biotech facilities to government and commercial customers in the United States, Europe, and other international markets.

Market Cap: US$2.9b

Redwire provides exposure to some of the most ambitious parts of the space and defense sector, from record Q2 2026 revenue and a growing backlog of NATO and U.S. military drone contracts to early stage in-space pharmaceutical platforms like SpaceMD and PIL-BOX that could create new royalty streams. The company is still loss making, carries funding and dilution risk, and relies heavily on complex government and fixed price contracts, so execution on new plants in Huntsville and Indiana and the Edge Autonomy acquisition is important. For investors comfortable with higher risk in pursuit of growth tied to space infrastructure and defense technology, Redwire may warrant closer consideration.

Redwire’s mix of record Q2 2026 revenue, defense contracts, and space biotech platforms hints at a story investors may not have fully priced in yet. Get the full 2 key rewards and 3 important warning signs (2 are major!)

BWX Technologies (BWXT)

Overview: BWX Technologies manufactures nuclear reactors, fuel, components and services for the U.S. Navy, commercial nuclear power, research reactors and medical applications, with a long operating history in highly regulated nuclear markets.

Operations: BWX Technologies generates about US$2.4b in revenue from Government Operations and US$1.1b from Commercial Operations, with most revenue coming from the United States and Canada.

Market Cap: US$15.3b

BWX Technologies provides focused exposure to nuclear defense and energy, supported by a backlog of roughly US$6b, multi year U.S. Navy propulsion contracts, and activity around small modular reactors and advanced fuels such as TRISO. That mix has supported recurring earnings and a net profit margin around 10%, while a high Return on Equity near 27% reflects both profitability and meaningful use of debt. On the other side of the ledger, the stock trades on a relatively high P/E, commercial margins face pressure from a changing work mix, and results are closely tied to U.S. government budgets. For investors who want a nuclear specialist with long term contracts and visible projects on the horizon, BWX Technologies may merit further research.

BWX Technologies links nuclear defense, energy projects, and a high reported 27% Return on Equity, yet the real story sits in the details. See how the contracts, margins, and debt profile all fit together in the analysis report for BWX Technologies

Seeking Alternatives Before The Crowd Moves

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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.