By the StockSemáforo model · Updated September 11, 2026

Best defense stocks

Defense is the visibility business: decade-long government contracts, giant order backlogs and a customer that doesn't go bankrupt. In exchange, margins are moderate and growth is tied to public budgets, not the economic cycle. This decade's global rearmament has turned a boring sector into one of the most sought-after — with the usual effect on prices.

This ranking sorts by fundamental quality, not by whether a stock is cheap or expensive: an excellent company can be expensive. To find the fair price, enter its quote in the analyzer. The scores recompute on their own with each new SEC filing.

75

quality /100

Margin 21.3%Growth 12.5%FCF 19.3%Debt/EBITDA 5.99x

TransDigm makes aircraft components almost nobody else makes: proprietary parts flying on virtually every commercial and military aircraft, which only it can replace.

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73

quality /100

Margin 7.8%ROE 26%Growth 6.8%FCF 12.3%Debt/EBITDA 2.27x

Leidos is the American government's largest technology-services contractor: Pentagon IT systems, airport scanners, veterans' healthcare and cyberdefense.

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72

quality /100

Margin 8.3%ROE 11.7%Growth 9.6%FCF 12.2%Debt/EBITDA 1.6x

RTX (formerly Raytheon) is one of the world's largest aerospace and defense groups.

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72

quality /100

Margin 8.1%ROE 16.6%Growth 6.9%FCF 11.5%Debt/EBITDA 0.69x

General Dynamics is one of the big U.S.

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69

quality /100

Margin 10.5%ROE 25.1%Growth 2.8%FCF 8.5%Debt/EBITDA 2.19x

Northrop Grumman is the defense contractor of the most advanced stuff: the B-21 stealth bomber, Sentinel intercontinental missiles, satellites and missile defense.

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63

quality /100

Margin 8.2%ROE 71.7%Growth 3%FCF 11.3%Debt/EBITDA 1.54x

Lockheed Martin is the world's largest defense contractor: it builds the F-35 fighter, missiles, helicopters and space systems, almost all for the U.S.

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63

quality /100

Margin 6.1%ROE 11.6%Growth 5.1%FCF 5%Debt/EBITDA -1.03x

Textron is the mid-sized aviation conglomerate: Cessna business jets, Bell helicopters — winners of the program replacing the US Army's Black Hawk — and specialty vehicles.

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62

quality /100

Margin 8.4%ROE 9.4%Growth 8.9%FCF 12.5%Debt/EBITDA 2.28x

L3Harris Technologies is America's sixth big defense contractor: military radios, electronic warfare, satellites and — after buying Aerojet — the rocket motors of American missiles.

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58

quality /100

Margin 6.2%ROE 5.4%Growth 32.7%FCF 4.1%Debt/EBITDA 8.52x

Axon Enterprise is the company behind Taser weapons and police body cameras: the less-lethal weapon, the camera that records and the cloud (Evidence.com) where all police video lives.

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Margin 5%ROE 12.4%Growth 6.4%FCF -0.6%Debt/EBITDA 2.64x

Huntington Ingalls is the American navy's shipyard: the United States' only builder of nuclear aircraft carriers and one of its two submarine builders.

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Best stocks by sector

Technology · Financial · Healthcare · Industrial · Consumer · Energy · Materials · Utilities · Artificial intelligence · Cybersecurity · Semiconductors · Software & SaaS · Banks · Insurance · Telecom & media · Real estate

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Who's behind the methodology and model · how the score is computed

Data: official SEC filings (EDGAR) · Recomputed on September 11, 2026

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