Boeing Stock And 2 Aerospace Picks Backed By Record Backlogs

With investors watching inflation, energy prices, and interest-rate decisions across major economies, companies linked to aerospace and defense sit at the crossroads of government spending, security demand, and complex global supply chains. The Aerospace And Defense stock screener filters this universe down to businesses that are directly connected to aircraft, space, and defense equipment or services, helping you cut through a crowded sector. In this article you will see 3 stocks from this screener, along with clear explanations of what they do, how they relate to the current macro backdrop, and the key factors to consider before making any decision.

Northrop Grumman (NOC)

Overview: Northrop Grumman is a large US aerospace and defense contractor that builds and supports military aircraft, missile and tactical weapons systems, secure communications and sensing equipment, and space platforms such as satellites and launch systems for governments and allies around the world.

Operations: Northrop Grumman generates most of its revenue from Aeronautics Systems (US$13.9b), Mission Systems (US$12.7b), Space Systems (US$10.8b), and Defense Systems (US$8.2b), with the United States contributing US$36.8b of sales and additional revenue from Europe, Asia/Pacific, and other regions.

Market Cap: US$75.8b

For investors looking at the aerospace and defense screener, Northrop Grumman stands out as a large contractor with exposure to aircraft, missiles, mission systems, and space, backed by a record US$105b backlog and recently raised 2026 sales and EPS guidance. The company combines high profitability, including a net margin of 10.5% and ROE of around 25%, with what appears to be a relatively low P/E versus peers, plus a steady 1.82% dividend. At the same time, heavy reliance on large US government programs and a high debt load introduce funding and execution risk, while analysts’ growth expectations are only moderate. The tension between strong cash generation potential, valuation support, and program risk is one factor that can make Northrop Grumman worth a closer look.

Northrop Grumman’s mix of high margins, strong ROE and a seemingly modest P/E hints at a story the headline numbers do not fully show. To explore this further, review the DCF valuation analysis for Northrop Grumman to see what the cash flows might be missing.

Boeing (BA)

Overview: Boeing is a global aerospace company that builds and supports commercial jetliners, military aircraft, satellites, missile defense systems, and space and services programs for airlines and governments worldwide.

Operations: Boeing generates most of its revenue from Commercial Airplanes at about US$42.6b, followed by Defense, Space & Security at about US$28.5b, and Global Services at about US$21.2b.

Market Cap: US$164.9b

Boeing attracts investor interest because it sits at the center of global air travel and defense spending, with a commercial aircraft backlog reported at more than US$500b and fresh orders across the 737 MAX and 787 families that help underpin multi year revenue visibility. At the same time, the company is working through certification milestones for the 737-7 and 737-10, as well as ongoing production, quality, and supply chain issues that have kept its commercial division in a loss making position and left a sizeable US$53.3b debt load. If Boeing can convert its large backlog into steady deliveries, improve margins, and manage these execution and funding risks, the combination of earnings recovery potential and a strengthening services business is a narrative that many investors may wish to examine more closely.

Boeing’s massive backlog and stalled margins hint at an earnings story investors may be underestimating. The full picture only comes into focus in the 4 key rewards and 2 important warning signs (1 is major!)

RTX (RTX)

Overview: RTX is a large aerospace and defense company that supplies aircraft engines, avionics, cabin equipment, and advanced sensors to airlines, aircraft manufacturers, and government defense customers worldwide, while also providing long term maintenance and support services.

Market Cap: US$281.9b

RTX catches attention because it sits across both commercial aerospace and defense, with a record US$289b backlog, solid earnings growth, and raised guidance that together give unusually clear revenue visibility compared with many peers. At the same time, the company is dealing with jet engine cost pressures, a high fixed cost base, and meaningful debt, so missteps on engine reliability or a shift in defense budgets could quickly affect profits and cash flow. For investors, the mix of quality earnings, experienced governance, and pricing that is not stretched compared with sector averages creates an interesting balance of opportunity and risk that deserves a closer look.

RTX’s mix of quality earnings and record backlog hints at a story the headline metrics are not fully capturing. Scan the analyst forecasts for RTX to see what could be quietly reshaping the risk reward profile.

The three aerospace and defense stocks in this article are just a starting point, because the full Aerospace And Defense screener highlights 66 more companies with equally compelling narratives across aircraft, space, and defense services. Use Simply Wall St to identify, analyze, and filter for the specific catalysts and narratives that matter most to you so you can focus on the highest conviction opportunities in this space.

Take Control of Your Investment Journey

If Boeing or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives For Your Curiosity?

Some stocks are building quiet momentum while others are dropping off radars, and the best entries rarely wait. Scan these fresh ideas before the crowd and consider them promptly.

• Spot businesses with resilient cash generation potential early by reviewing the list of solid balance sheet and fundamentals (49 results) that highlights companies with financial strength while this information edge still matters.
• Explore secular technology shifts by checking the 55 AI infrastructure stocks packed with companies involved in the hardware and networks behind AI.
• Evaluate potential cash distributions by assessing the 9 dividend fortresses curated for higher yielding businesses that may continue paying investors when sentiment cools.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com