The final weeks of 2025 have proven to be a watershed moment for the aerospace industry as Rocket Lab USA, Inc. (Nasdaq:RKLB) solidified its transition from a niche launch provider to a heavyweight defense prime. On December 23, 2025, analysts at Needham sent shockwaves through the market by raising
Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding.
Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.
Shares of aerospace and defense company Redwire (NYSE:RDW)
jumped 5.7% in the afternoon session after the company continued its multi-day rally following the announcement of a significant contract win.
Shares of aerospace and defense company Redwire (NYSE:RDW)
jumped 11.8% in the morning session after the company announced an eight-figure agreement with European aerospace firm The Exploration Company (TEC) to provide advanced docking systems for spacecraft.
The stocks featured in this article are seeing some big returns.
Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
Shares of aerospace and defense company Redwire (NYSE:RDW)
fell 1.3% in the afternoon session after Cantor Fitzgerald significantly lowered its price target on the company's stock by 55%. The analyst firm reduced its target to $9.00 from a previous $20.00. Despite the substantial cut, Cantor Fitzgerald maintained its "Overweight" rating on the aerospace company's stock. However, the decision to slash the price target so steeply reflected a more cautious stance on Redwire's future performance and financial prospects, which appeared to concern investors.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how aerospace stocks fared in Q3, starting with Howmet (NYSE:HWM).
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace and defense industry, including Byrna (NASDAQ:BYRN) and its peers.
A number of stocks fell in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts.
Shares of aerospace and defense company Redwire (NYSE:RDW)
jumped 2% in the afternoon session after the company announced it was awarded a $44 million contract from the Defense Advanced Research Projects Agency (DARPA). The phase 2 contract provided funding to advance DARPA's Otter Very Low Earth Orbit (VLEO) mission. The funds were allocated to complete the manufacturing and delivery of what was described as the world's first "air-breathing" spacecraft. Redwire utilized its SabreSat platform for the project, which aimed to advance next-generation orbital capabilities. The contract award highlighted the company's role in developing innovative space and defense technology solutions.
As part of the contract, Redwire will use the funding to complete the manufacturing of the spacecraft and deliver it to DARPA for the agency’s Otter Very Low Earth Orbit mission.
A number of stocks fell in the morning session after concerns regarding lofty artificial intelligence valuations triggered a pullback in the technology sector.
A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
