Oil prices sit near firm multi month highs, which keeps attention on energy costs and global security. That keeps spending on Aerospace And Defense capabilities in focus for governments and contractors. For investors, this creates a clear theme that cuts through short term noise. This article highlights 3 stocks from our Aerospace And Defense screener that stand out on fundamentals, business mix, and exposure to long term demand.

The three stocks below are just a starting sample, and the full Aerospace And Defense screen surfaced 301 more companies with equally compelling narratives that are not covered here. If you want to identify your own highest conviction ideas, head straight into the Aerospace And Defense screener to filter and analyze this broader universe.

Archer Aviation (ACHR)

Archer Aviation develops electric vertical takeoff and landing aircraft for urban air taxi services and defense applications, aiming to move passengers quietly over congested cities. The company is still early on the commercial journey so detailed revenue split data is not available. Archer Aviation currently carries a market cap of about US$4.8b, which puts it firmly in the mid cap bracket for US aerospace stocks.

Investors looking at Archer Aviation are really weighing whether this can move from a concept story to a full-scale commercial and defense platform. The partnership with Stellantis to build a high volume factory, a reported order book of more than US$3.5b and FAA certification work on the Midnight aircraft all point to serious industrial intent. The Boeing deal and Thunder and Halo autonomous VTOL platforms extend that into AI enabled defense and software. Against that, investors need to be comfortable with ongoing losses, heavy funding needs and a balance sheet that leans on external borrowing. If high growth forecasts and new defense and autonomy businesses take shape, today’s valuation could look very different to investors who did the homework early.

Archer Aviation’s factory plans, order book and FAA work all point to a story that could accelerate fast. Yet the real plot twist may sit inside the analyst forecasts for Archer Aviation that many investors have not fully priced in

Build your own air mobility and defense shortlist

Archer Aviation and the other two stocks in this list all surfaced from a single Simply Wall St screen, but the real edge comes from shaping filters around what matters most to you. Use our flexible Screener to mix metrics like valuation, future growth and balance sheet strength, or start with one of our curated Investing Ideas for ready made stock shortlists.

Rheinmetall (XTRA:RHM)

Rheinmetall is a German defense group that supplies armored vehicles, weapons and ammunition, and electronic systems such as sensors, communications, and training platforms to armed forces worldwide. Most revenue comes from Vehicle Systems at about €5.5b and Weapon and Ammunition at about €4.0b, with smaller contributions and adjustments across other segments, while Germany and the rest of Europe account for the bulk of regional sales. The company is a large cap in European defense with a market value of roughly €54.4b.

Rheinmetall sits at the center of Europe’s rearmament push, with a €80.4b order backlog that provides unusual revenue visibility and supports guidance for high teens operating margins even after a recent €10b German naval contract cancellation. The company also offers a mix of traditional hardware and higher margin electronic and space based systems, from air defense and drones to secure satellite communications, that could reshape the earnings profile over time. The flip side is heavy reliance on European defense budgets, ambitious capacity expansions, and meaningful debt funding, which can quickly change the risk reward balance if contracts slip or politics shift.

Rheinmetall’s swelling €80.4b backlog and high teens margin guidance point to earnings power that many investors may be underestimating. Get the full picture in the 3 key rewards and 2 important warning signs

Redwire (RDW)

Redwire sits at the intersection of space infrastructure and defense tech, supplying everything from sensors and avionics to uncrewed aerial systems and in space manufacturing platforms. Revenue is split fairly evenly across its two segments, with about $208.9 million from Space and $217.4 million from Defense Tech, and the company carries a market cap of roughly $3.4b.

Redwire catches attention because it is tying record quarterly revenue and a backlog of about $542 million to real capacity expansions in space systems and uncrewed aircraft, while also pushing into higher margin areas like in space pharma with SpaceMD. At the same time, the stock carries meaningful baggage, including ongoing losses, heavy reliance on higher risk external borrowing, and substantial recent dilution to fund growth. If management can convert that backlog into more predictable cash flow and keep capital raises in check, the balance between rapid revenue growth and financing risk could look very different to investors willing to do deeper work here.

Redwire’s accelerating backlog and space pharma push could be masking a much sharper inflection in its story. See how the analyst forecasts for Redwire stack up against the balance sheet pressures investors keep worrying about.

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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.