10 Best Aerospace Stocks to Buy for Q1 2025

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The aerospace industry is growing at a rapid rate because of the rising demand from governments, businesses, and individuals. This growth has created an opportunity for people to invest in the best companies in the sector. This article lists some of the best aerospace companies to buy and hold for a long time. It will look at companies in the civil and defense industries.

We have selected the top ten aerospace shares to buy in 2025 based on various fundamental factors such as earnings, prospects, and reserves. It also hasn’t escaped our notice that the price charts for many of these stocks show beaten-down or steadily recovering share prices.

Here are our top ten aerospace stocks:

1. Airbus (EADSF)

• Market Cap: $126 billion
• P/E Ratio: 29
• Revenue Growth: 13%
• Stock Price: $161

Airbus is one of the best aerospace stock to invest in. It is a leading aircraft manufacturer that focuses on civil aviation and defense-related industries. In the past few years, it has seen strong revenue growth as it took market share from Boeing, a fallen angel that has moved from one crisis to the other.

Airbus’s revenue has jumped from over $60.7 billion in 2020 to over $72 billion in 2023. It has also become a highly profitable company generating over $4 billion in annual profits. There are chances that it will continue growing its revenues as more airlines decamp from Boeing, which has become a perennial value destroyer.

Most of Airbus’s problems have been out of its control. For example, it has suffered from substantial supply chain issues and higher commodity prices in the past few years. The other challenge is that its quality could drop as it receives more orders than it did a few years ago.

2. Lockheed Martin (LMT)

• Market Cap: $110 billion
• P/E Ratio: 12.6
• Revenue Growth: 5.2%
• Stock Price: $459

Lockheed Martin is a well-known name in the defense industry. It is also one of the biggest players in the airspace industries. Its best-known product is the F-35, which is widely seen as the most advanced fighter planes in the world. F-35’s total cost is seen as being over $2 trillion in its lifetime. 

Lockheed Martin also manufactures other aircraft like the Black Hawk Helicopter, CH-53K helicopter, F-16 Fighting Falcon, and Raider X. The company’s aerospace business is its biggest as it generated over $27.4 billion in annual revenue in 2023. 

The benefit of investing in Lockheed Martin is that it is one of the best-known names in the defense aviation industry. In addition to selling its planes, the company also earns money in perpetuity through its long-term service contracts. Also, it is one of the most undervalued companies in the industry and has boosted its dividends for over 21 years.

3. General Dynamics (GD)

• Market Cap: $80 billion
• P/E Ratio: 20
• Revenue Growth: 8%
• Stock Price: $294

General Dynamics is another quality aerospace stock to buy. While it is known for its defense business, it also has a role in the civil aviation industry. In particular, the company owns Gulfstream, which is one of the biggest players in business travel globally. It acquired the company for $5.1 billion in 1999.

General Dynamics also owns JetAviation, a company that provides aircraft sales, charter, and services. Therefore, investing in General Dynamics gives you access to one of the biggest players in the defense and civil aerospace industries n the world.

The company’s revenue has constantly been growing, moving from over $37 billion in 2020 to over $42.7 billion in 2023. It is also one of the most profitable companies, generating over $3.3 billion in annual profits.

The challenge of investing in General Dynamics is that its stock seems to be fully valued since it has a price-to-earnings ratio of 20. 

4. Embraer (ERJ)

• Market Cap: $5.3 billion
• P/E Ratio: 21
• Revenue Growth: 11%
• Stock Price: $30

Embraer is another top-quality aerospace stock to buy. It is a Brazilian company that has a big market share in the private jet market, an industry that is growing. 

The company’s business has been growing because of the strength of the global economy and the millionaires that have been created over time. Its annual revenue is over $5.3 billion and it has started to make money. 

Embraer is a good investment because it operates in a growing industry and competes with a small number of companies like Gulfstream, Dassault, and Bombardier. It has also turned a leaf by moving from a loss-making zone into a profitable company.

Also, the company has the benefit of being Brazilian, meaning that it is not highly exposed to geopolitical issues, especially between the US and China. 

5. RTX Technologies (RTX)

• Market Cap: $141 billion
• P/E Ratio: 19.8
• Revenue Growth: 3.5%
• Stock Price: $106.7

RTX, formerly known as Raytheon, is another top-quality aerospace companies to invest in. It has a big role in the industry because it owns Collins Aerospace and Pratt & Whitney. Collins Aerospace is a company that manufactures advanced structures, avionics, interiors, and mission systems across the commercial, regional, and business industries.

Pratt & Whitney manufactures aircraft engines that are used globally. Therefore, investing in RTX is having a bet on the aerospace industry and the growing defense sector. It makes billions of dollars in annual revenues and has almost $200 billion worth of backlog. It also pays substantial dividends each year.

Where to buy the best aerospace stocks

Aerospace shares are listed on stock exchanges, and brokerages offer them to clients to trade. It’s best to buy and sell aerospace stocks via a regulated broker rather than on an unregulated platform. However, it can be hard to find the best broker for you, so we’ve come up with a list of candidate brokers based on their regulatory status, fees, and unique features.

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How to trade and invest in aerospace shares?

• Open a trading account: the first step is to select a suitable broker platform on which to trade, which means one that is regulated (among other things). You will need to provide your name, email address, home address, and any required identification documentation. In many cases, you can open a brokerage account within minutes.
• Choose aerospace shares: when choosing potentially undervalued shares to hold for the medium to long term, it is important to perform fundamental analysis — looks at things like earnings — to determine the true intrinsic value of the candidate stocks. Since aerospace stocks could stage their recoveries at different rates, think about diversifying across several such stocks rather than investing in a single stock.
• Place your trade: if you’re buying aerospace stocks based on the fact that they’re still undervalued in the post-pandemic period, you don’t need to worry too much about timing your purchase exactly by conducting technical analysis, so it should simply be a matter of entering your investment size (as a monetary amount or number of shares) and pressing the “buy” button.

What are aerospace stocks?

The vast aerospace industry comprises many constituents, including auxiliary equipment manufacturing, commercial aircraft, helicopters, rocket engines, turbines, commercial gliders, and more. Many large defence companies account for a big share of this market because governments assign billions to defense spending and developing their air force capabilities. The aerospace industry is also driven by demand for business and leisure travel, which was massively impacted by the coronavirus pandemic of 2020-21.

If you believe that the worst of the pandemic is behind us and that aerospace companies are positioned well to continue their recoveries, you will find plenty of listed stocks to choose from.

What Are the Trading Hours for aerospace shares?

You can trade aerospace stocks on the exchanges where they are listed. The exchanges are usually open from Monday till Friday 9.30 am to 4 pm Eastern Time (and at similar local times in other countries such as the UK).

The initial one or two hours see a lot of volatility because big institutions are busy opening and closing their positions. At lunchtime, the volatility dies down as traders go for a break. Then, the last two hours see a bit of movement as day traders close their positions to avoid holding risk on their portfolios. Trading during pre and post-market sessions is also available but is limited to expert traders.

Are aerospace stocks a good investment?

As already hinted, aerospace stocks were beaten down badly during the coronavirus pandemic, but the ones that didn’t go bust have started to recover and may not have reached their full value yet. As travel restrictions are eased, airlines will need their fleets of aircraft repaired and replaced, so aerospace companies could enjoy increased demand. But it’s not all about business and leisure travel, so don’t forget that aerospace companies also do big business in the defence sector.

When trading shares of aerospace companies, it’s best to choose solid stocks that have stood the test of time. During the coronavirus pandemic, many aerospace industry shares became worthless, but the ones that remain could be good bets on a continued recovery.

Methodology: How we choose the best aerospace stocks

At Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.

• Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
• Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
• Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
• Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
• Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
• Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.

Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.

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