Aerospace has come a long way since the Wright brothers first took flight in 1903. Today, aerospace is a $300 billion global industry that includes companies that make rockets, planes, drones, and other flying craft.
The aerospace industry is generally broken down into commercial and defense applications, although many of the largest companies serve both the airlines and the Pentagon.
Both the defense and commercial sides of the business are in a period of sustained growth, making this an intriguing time for investors to consider aerospace stocks. Conflicts in both Europe and the Middle East have caused ripples around the globe and have led the United States and its European allies to invest in defense.
On the commercial side, a post-pandemic travel resurgence and a growing global middle class have companies predicting demand for more than 43,000 new airplanes over the next 20 years.
Combining commercial and defense, these companies are also among the space stocks pushing the envelope and ushering in a new era of commercial spaceflight.
Four best aerospace stocks for 2025
Let's take a closer look at these standout companies.
1. Lockheed Martin
NYSE: LMT
Key Data Points
NYSE: NOC
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3. TransDigm Group
For people unsure about committing to one stock, there is a range of defense exchange-traded funds (ETFs) that provide substantial exposure to aerospace. Given the size and scale of these companies, many of the major aerospace stocks are also represented in broader industrial ETFs.
Are aerospace stocks right for your portfolio?
The Boeing example is a reminder that risk can affect even the largest aerospace companies. But the industry is full of steady, diversified companies that rely on a stable customer -- the U.S. government -- with a 200-plus-year history of paying its bills.
Aerospace stocks can also benefit income-focused investors since the biggest companies are established dividend payers that tend to yield more than 2%. These companies also tend to be aggressive with share buybacks, putting excess cash to work for investors by reducing the number of shares outstanding.
The world is growing smaller by the day, but shows no signs of growing safer. There is a real and sustained need for updated versions of those flying machines pioneered by the Wright brothers a century ago.
Aerospace can be a slow and steady long-term option for investors who crave solid, predictable returns and want to tap into this massive global market opportunity.
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How to invest in aerospace stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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