With bond yields elevated across major regions and central banks signaling tighter policy, many investors are looking for sectors that are closely linked to long term government spending and global trade flows. The Aerospace And Defense screener focuses on companies that manufacture or provide services to these industries, giving you a focused way to research stocks that sit at the crossroads of security, technology and supply chains. This article highlights 3 stocks from that screener, helping you narrow a broad universe into a short list for deeper analysis based on your own goals and risk tolerance.

L3Harris Technologies (LHX)

Overview: L3Harris Technologies is a US-based defense contractor that supplies mission critical communication systems, missile propulsion and tracking technologies, and space and satellite solutions to government and commercial customers worldwide, including the U.S. Department of Defense and allied nations. Its portfolio spans tactical radios, missile warning and defense payloads, hypersonic and propulsion systems, and public safety communications.

Operations: L3Harris reports a segment adjustment of US$22.5b and generates about US$17.5b of revenue from the United States and US$5.0b from international customers.

Market Cap: US$53.1b

L3Harris Technologies provides exposure to several high priority defense areas, including missile tracking satellites, hypersonic propulsion and advanced tactical radios. Recent contract wins with the U.S. Space Force, Army and FAA highlight how closely it is tied to long term government programs. The stock combines a dividend of 1.67% with analyst assumptions for improving profit margins. Simply Wall St’s DCF and current valuation metrics suggest it is trading at what is described as good value compared with many Aerospace & Defense peers. At the same time, high debt, fixed price development contracts and reliance on other contractors add execution risk. Investors who understand how these trade offs stack up may see a different story in L3Harris than headline numbers alone suggest.

L3Harris appears to be a valuation outlier in key defense programs; however, that potential advantage only matters if the assumptions behind it hold up, so review the DCF valuation analysis for L3Harris Technologies to see what might change the story next.

General Electric (GE)

Overview: General Electric, now operating as GE Aerospace, designs and services jet engines, power systems and aircraft components for commercial airlines, business aviation and military customers worldwide, supporting everything from long haul passenger jets to rotorcraft and next generation defense platforms.

Operations: GE Aerospace generates most of its revenue from Commercial Engines & Services at about US$37.7b, with Defense & Propulsion Technologies contributing roughly US$11.5b and Corporate & Other around US$1.4b.

Market Cap: US$354.0b

GE Aerospace provides exposure to the core of global aviation, with long lived engine programs, a large installed base and a record backlog around US$210b that supports recurring services revenue. The company is integrating advanced engines, digital inspection tools and AI driven maintenance to shorten shop visits and sustain higher margin aftermarket work. In parallel, international defense programs and hybrid electric projects broaden its reach across commercial and military fleets. At the same time, high leverage, reliance on commercial air travel and execution risk on new platforms mean the stock does not present a straightforward growth narrative. For investors weighing premium valuation against cash generation and defense exposure, GE offers a range of considerations beyond the headline numbers.

GE Aerospace’s large installed base and record backlog could be masking a very different earnings profile ahead. Review the analysis report for General Electric to see what the headline story might be missing.

Northrop Grumman (NOC)

Overview: Northrop Grumman is a large US aerospace and defense company that builds and supports aircraft, missiles, space systems and advanced electronics used for surveillance, communications and command-and-control across air, land, sea, cyber and space.

Operations: Northrop Grumman generates about US$13.9b from Aeronautics Systems, US$12.7b from Mission Systems, US$10.8b from Space Systems and US$8.2b from Defense Systems, with smaller intersegment eliminations and most revenue coming from the United States.

Market Cap: US$74.6b

Northrop Grumman gives you direct exposure to long cycle defense programs in bombers, missiles and space systems, backed by a record backlog of about US$105b and recent guidance lifts following Q2 2026 revenue of US$10.88b and EPS of US$7.68. The stock combines a 1.85% dividend, high current and forecast Return on Equity, and a P/E that sits below many Aerospace & Defense peers, which some investors may view as valuation support if cash flows track expectations. On the other side of the ledger, high debt, fixed price contracts and heavy reliance on a few major US programs mean execution or budget setbacks could quickly pressure margins. How those trade offs line up will matter more than any single headline for Northrop Grumman.

Northrop Grumman’s record backlog and current ROE could be masking a very different return profile ahead. Review the 4 key rewards and 1 important warning sign to see what might be hiding behind those contract headlines.

The three stocks in this article are only a starting point, and the full Aerospace And Defense screener surfaces 66 more companies with equally compelling aerospace and defense narratives that could round out your watchlist. Use Simply Wall St to identify, analyze and filter for the specific catalysts and storylines that matter to you, so you can focus on the highest conviction opportunities in this theme.

Take Control of Your Investment Journey

If L3Harris Technologies or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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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.