Aerospace and Defense stocks have been on an absolute tear these days.
This group has quietly become one of the strongest pockets within Industrials, showing serious leadership and momentum.
But the real fireworks are coming from European names. These stocks have been stealing the show lately.
We put together our own equally weighted index to track Europe’s core defense and aerospace leaders.
Check it out:
Since breaking out of a base in late 2023, this index has basically gone vertical.
These aren’t just big names — they’re the backbone of Europe’s military-industrial complex, chosen from countries that matter most on the geopolitical stage:
EADSY — Airbus SE (France)
BAESY — BAE Systems (UK)
RNMBY — Rheinmetall (Germany)
FINMY — Fincantieri (Italy)
SAABY — Saab (Sweden)
SAFRY — Safran (France)
RYCEY — Rolls-Royce (UK)
MTUAY — MTU Aero Engines (Germany)
These companies are fueling Europe’s rearmament cycle — supplying everything from fighter jets and warships to missile systems and propulsion engines.
Right now, the index is hitting fresh all-time highs — outpacing even its U.S. peers, which are also trading near record levels.
Here’s how they look when we overlay the two.
Up and to the right. Europe and the U.S. — the strength has been off the charts, and there’s nothing suggesting this run is slowing down anytime soon.
The ASC team is gearing up to release a deep-dive report on this powerhouse theme. This one’s definitely worth watching — structural tailwinds remain strong globally, and the European stocks are clearly leading the way.
