5 High-Flying Aerospace Defense Stocks to Buy for Q4 on Strong Demand

The aerospace defense industry has maintained its northbound journey amid supply-chain woes. Increased defense budget by the U.S. administration and geopolitical uncertainties across the globe, especially, in the Middle East, Europe and South and South-East Asia are likely to boost this space in the final quarter of this year. 

In May 2025, a White House report was published, which stated that President Donald Trump proposed a 13% increase in the nation’s defense spending to $1.01 trillion for fiscal year 2026. Such improved funding provisions set the stage for industry players focused on the defense business to win more contracts and expand their production volume, which is likely to boost their top line.

At this stage, it will be prudent to invest in aerospace defense stocks with a favorable Zacks Rank for the rest of 2025. Five such stocks are: GE Aerospace GE, Howmet Aerospace Inc. HWM, HEICO Corp. HEI, Astronics Corp. ATRO and AerSale Corp. ASLE.

Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks have provided more than 35% returns year to date. Yet, their favorable Zacks Rank indicate more upside in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

GE Aerospace

Zacks Rank #1 GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company. 

GE’s portfolio-reshaping actions are likely to unlock value for its shareholders. GE remains committed to making investments to boost growth. For instance, it plans to invest more than $1 billion in its MRO facilities around the world over the next five years. For 2025, GE expects organic revenues to grow in the low-double-digit range from the year-ago level.

GE Aerospace has an expected revenue and earnings growth rate of -4.4% and 27.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the last 60 days. 

Howmet Aerospace Inc.

Zacks Rank #2 Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets. 

Robust orders for engine spares for the F-35 program, spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies.

Howmet Aerospace has an expected revenue and earnings growth rate of 9.4% and 32.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 60 days. 

HEICO Corp.

Zacks Rank #2 HEICO has been witnessing increased orders for its aftermarket replacement parts and repair and overhaul parts services, backed by rising air travel. With its Flight Support Group unit being a supplier of military aircraft parts, solid U.S. defense funding should bolster order flows for HEI’s defense products. HEI boasts a solid liquidity position.

HEICO has an expected revenue and earnings growth rate of 13.8% and 27.5%, respectively, for the current year (ending October 2025). The Zacks Consensus Estimate for current-year earnings has improved 2.4% over the last 30 days.

Astronics Corp.

Zacks Rank #1 Astronics is a manufacturer of specialized lighting and electronics for the cockpit, cabin and exteriors of military, commercial transport and private business jet aircraft. A major lighting and electronics supplier to the aircraft industry, ATRO’s strategy is to expand from a components and subsystems supplier to an aircraft lighting systems integrator, increasing the value and content it provides to various aircraft platforms. 

Astronics has an expected revenue and earnings growth rate of 7% and 46.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.7% over the last 60 days. 

AerSale Corp.

Zacks Rank #1 provides an integrated, diversified aviation aftermarket products and services for aircraft owners and operators to realize savings in the operation, maintenance and monetization of their aircraft, engines and components. 

ASLE’s offerings include: Aircraft & Component MRO, Aircraft and Engine Sales and Leasing, Used Serviceable Material sales and internally developed 'Engineered Solutions' to enhance aircraft performance.

AerSale has an expected revenue and earnings growth rate of 3.2% and 94.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 75% over the last 60 days. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research