Aerospace And Defense stocks sit at the crossroads of global security priorities, trade flows and government spending, which are all in focus as investors watch energy routes, bond markets and inflation trends from Germany to Japan. This screener zeroes in on companies that manufacture or provide services to these sectors, helping you filter a wide universe down to focused exposure in a single theme. In this article, you will see 3 stocks from the Aerospace And Defense screener, with clear context on what they do and how they fit into today’s market drivers.

Howmet Aerospace (HWM)

Overview: Howmet Aerospace is a long-established Pittsburgh based manufacturer of highly engineered parts such as engine components, fasteners, titanium structures and forged aluminum wheels that go into commercial jets, military aircraft and heavy trucks around the world.

Operations: Howmet Aerospace generates most of its revenue from Engine Products at about US$4.6b, followed by Fastening Systems at roughly US$1.8b, Engineered Structures at about US$1.1b and Forged Wheels at about US$1.1b, with a small offset from inter segment sales.

Market Cap: US$111.1b

Howmet Aerospace sits in a sweet spot for this screener, with strong exposure to commercial and defense aircraft demand, rising content on newer fuel efficient jets and a track record of high earnings growth and margins. Revenue and earnings growth forecasts, a 20.2% net margin and 31.6% ROE all point to a business that converts demand into profitability, and recent news highlights higher 2026 guidance, share buybacks and ongoing portfolio pruning. The catch is that the stock trades on a rich P/E multiple, carries meaningful debt, and has seen insider selling and very high executive pay. This raises questions about how much of the good news is already priced in and how resilient the story is if conditions change.

Howmet Aerospace’s high margins, strong ROE and rich P/E hint at a story the market thinks it already understands, but the full picture may be more nuanced than the headline metrics suggest, especially once you weigh insider selling, debt and governance signals against the underlying business strength in the 2 key rewards and 2 important warning signs

Mercury Systems (MRCY)

Overview: Mercury Systems is a defense focused technology company that supplies high performance computing, radio frequency, sensor and storage hardware used in radar, electronic warfare, intelligence and imaging systems for defense primes and aerospace customers. Its products sit inside mission critical platforms, from fighter jets and drones to space and surveillance systems, where secure, real time processing is essential.

Operations: Mercury Systems generates virtually all of its US$967m in revenue from Aerospace & Defense, with sales concentrated in the United States at about US$942.8m and a smaller contribution from Europe at roughly US$57.8m.

Market Cap: US$6.8b

Investors watching the Aerospace And Defense screener may find Mercury Systems interesting because it sits at the heart of radar, electronic warfare and secure processing programs that defense budgets are prioritizing, yet the company is still working through a period of earnings losses and legacy low margin contracts. On the positive side, recent record bookings, improving margins, and management’s focus on higher value embedded processing and open architecture solutions point to a business mix that could support more predictable profitability if execution stays on track. The flip side is that modest near term revenue growth, reliance on external borrowing and a history of accelerating deliveries to pull revenue forward leave little room for missteps, especially with the stock already priced for meaningful improvement in the years ahead.

Mercury Systems’ shift toward higher value embedded processing and improving margins hints that the current story may only be half written. It is worth reviewing the 1 key reward and 1 important warning sign to see what might change the script next.

Astronics (ATRO)

Overview: Astronics is an East Aurora based supplier of aircraft electrical power, lighting, connectivity and safety systems, alongside specialized test equipment, selling into commercial airlines, airframe manufacturers, the U.S. Department of Defense and prime contractors around the world.

Operations: Astronics generates almost all of its revenue from Aerospace at about US$819.8m, with a smaller contribution from Test Systems at roughly US$67.5m and a minor offset from intersegment sales.

Market Cap: US$3.5b

Astronics provides focused exposure to aircraft build rates and cabin upgrades, with Q1 2026 revenue of US$230.6m, rising margins and record bookings indicating stronger demand for its high margin power, lighting and inflight connectivity products. The company also has a sizeable U.S. Army radio test contract that can help broaden its defense exposure. At the same time, the stock trades at a high P/E, carries meaningful debt and is working through restructuring, tariff headwinds and a Test segment that has had costly project missteps and legal issues. The key question for investors is whether Astronics can translate its backlog and guidance upgrades into cleaner, less volatile earnings, as the difference between that potential and the current risk profile is central to the investment case.

Astronics’ backlog, guidance upgrades and high margin cabin systems suggest the story may be shifting from repair mode to controlled acceleration, but the real turning point sits in the analyst forecasts for Astronics that could quietly reshape expectations

The three Aerospace And Defense stocks in this article are only a starting point. The full screener highlights 67 more companies with equally compelling narratives across aircraft components, mission systems and defense electronics in the Aerospace And Defense screener. With Simply Wall St, you can identify and analyze the specific catalysts, risk flags and business narratives that matter most 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.