The Aerospace And Defense screener focuses on companies that manufacture or provide services to a sector closely linked to global trade, government budgets and shifting security priorities. With investors tracking everything from oil flows in Hormuz to mixed inflation signals across the US, Europe and Asia, there is growing interest in businesses that sit at the intersection of technology, logistics and long-cycle government programs. This article highlights 3 stocks from the Aerospace And Defense screener and explains why each one may appeal to investors who want targeted exposure without having to build a watchlist from scratch.

Redwire (RDW)

Overview: Redwire is a Jacksonville based space infrastructure company that supplies sensors, avionics, payloads, software, microgravity facilities and uncrewed systems to government and commercial customers across the US, Europe and other regions. Its technology underpins satellite navigation and imaging, in space manufacturing, biotech research and defense focused autonomous systems.

Operations: Redwire generates around US$210.4 million from its Space segment and US$160.6 million from Defense Tech, with about US$210.0 million of revenue coming from the United States, US$136.2 million from Europe and US$24.7 million from other markets.

Market Cap: US$2.1b

Redwire sits at the center of the growing space and defense infrastructure build out, with exposure to satellites, in space manufacturing, UAS and even space based pharma and agriculture, but the story is far from straightforward. On one hand, a large contract backlog, diversification into high margin products like SpaceMD and Octopus payloads, and exposure to NATO, NASA and UAS demand give Redwire multi year revenue visibility and optionality that many smaller contractors lack. On the other hand, the company is still loss making, depends heavily on complex government work, carries higher risk funding, and is using equity issuance that can dilute existing holders. The key question is whether that future earnings potential justifies today’s rich expectations and ongoing dilution.

Redwire’s contract backlog and in space ambitions look exciting, but the real story lies in how its cash needs, equity dilution and contract mix fit together, which is mapped out in the analysis report for Redwire

Rocket Lab (RKLB)

Overview: Rocket Lab is a Long Beach based space company that provides small and medium class rocket launches alongside a broad range of space systems, from satellite design and manufacturing to on orbit operations and constellation management, serving commercial, government and aerospace contractor customers around the world.

Operations: Rocket Lab generates about US$452.5 million from its Space Systems segment and US$227.1 million from Launch Services.

Market Cap: US$46.7b

Rocket Lab interests investors who want exposure to both launch services and the “picks and shovels” of the space economy, since roughly two thirds of its revenue comes from selling satellites and components that sit on top of its own rockets. A growing contract backlog with NASA, the US Space Force and commercial constellations, plus Neutron as a medium lift vehicle, gives the company a potential path to scale vertically across launch and hardware. At the same time, Rocket Lab is still loss making, carries funding risk through reliance on external borrowing, has seen shareholder dilution and recent insider selling, and trades on a rich P/B multiple relative to peers. The real question is whether its launch cadence, reliability record and space systems growth justify those risks and the current valuation.

Rocket Lab’s mix of launch services and space hardware has investors focused on growth. The real story may sit in how that growth lines up against its current share price in the DCF valuation analysis for Rocket Lab

Kratos Defense & Security Solutions (KTOS)

Overview: Kratos Defense & Security Solutions is a San Diego based defense technology company that builds jet powered unmanned drones, hypersonic and rocket systems, satellite ground software, and electronic systems used by the U.S. Department of Defense and allied governments. Its platforms sit in areas like tactical drones, missile propulsion and satellite communications that are central to modern defense and national security programs.

Operations: Kratos generates about US$1.10b from its Kratos Government Solutions segment and US$311.5 million from Unmanned Systems, with most revenue reported in the United States.

Market Cap: US$8.68b

Kratos Defense & Security Solutions attracts investors who want focused exposure to drones, hypersonics and other next generation defense platforms that sit directly in the path of rising government modernization programs, supported by recent contract wins, a growing backlog and revenue guidance lifted to US$1.70 to US$1.76b for 2026. Earnings growth has been strong and forecasts point to revenue and profit expansion ahead of the broader U.S. market, but this comes with stretched valuation metrics, reliance on external borrowing, low current returns on equity and ongoing insider selling that deserve close attention. The real question is how that mix of high growth expectations, contract momentum and funding risk fits together over the next few years, which is not fully obvious from the headline numbers alone.

Kratos looks like a high octane growth story in drones and hypersonics, but the tension between its valuation, funding needs and contract momentum is not obvious from the headlines in the 2 key rewards and 1 important warning sign

The three Aerospace And Defense stocks covered here are just a starting point, as the full screener surfaced 67 more companies with equally compelling narratives in the Aerospace And Defense screener. Use Simply Wall St to identify and analyze the specific catalysts, contract trends, balance sheet profiles and valuation setups that matter most to you so you can focus on the highest conviction ideas in this sector.

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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.