Drones and space slide as the quiet suppliers hold up

The typical drone stock has lost nearly half its value, even in a week when the Pentagon pushed for mass drone production.

• Drones and autonomy (stage: Weapons), 2 stocks: KTOS, AVAV. Combined market cap $13.8bn, 0.3% of the theme. Price change of the typical stock (median): 7 days -7.9%, 1 month -18.6%, 3 months -13.3%, 6 months -39.7%, this year so far -48.2%. 0 of 2 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 31.9x. Typical price against the last year's earnings: 237.8x. Typical revenue growth: +18.1%. Typical earnings-per-share growth: +0.0%. Typical operating margin: -5.7%. Typical net margin: -4.1%. Typical distance below 52-week high: 70.0%. Typical gap to analysts' average target: +110.4%. How this business works: Makes uncrewed aircraft and the systems that fly them. The companies are small beside the primes, and sales arrive as a few large contract awards, so results can swing sharply from one quarter to the next.
• Space (stage: Space), 11 stocks: SPCX, RKLB, ASTS, PL, IRDM, LUNR, RDW, FLY, VOYG, KRMN, ECHO. Combined market cap $2.02tn, 41.9% of the theme. Price change of the typical stock (median): 7 days -12.4%, 1 month -17.4%, 3 months -13.1%, 6 months -46.3%, this year so far -26.1%. 1 of 10 are in an uptrend (above their 200-day line), 10%. Typical price against next year's expected earnings: 36.5x. Typical price against the last year's earnings: 84.7x. Typical revenue growth: +62.0%. Typical earnings-per-share growth: +32.5%. Typical operating margin: -27.5%. Typical net margin: -38.7%. Typical distance below 52-week high: 68.5%. Typical gap to analysts' average target: +82.7%. How this business works: Launches rockets and builds and operates satellites. Many of these companies are young and not yet profitable, and they depend on a small number of launches or government contracts going well.
• Primes (stage: Platforms), 9 stocks: LMT, NOC, GD, RTX, BA, BA.L, AIR.PA, LDO.MI, AM.PA. Combined market cap $1.02tn, 21.2% of the theme. Price change of the typical stock (median): 7 days +6.6%, 1 month -1.5%, 3 months +0.5%, 6 months -6.2%, this year so far +4.1%. 5 of 9 are in an uptrend (above their 200-day line), 56%. Typical price against next year's expected earnings: 18.5x. Typical price against the last year's earnings: 25.2x. Typical revenue growth: +10.5%. Typical earnings-per-share growth: +21.0%. Typical operating margin: 10.4%. Typical net margin: 8.2%. Typical distance below 52-week high: 16.0%. Typical gap to analysts' average target: +18.2%. How this business works: The lead contractors governments order aircraft, missiles and whole systems from. Work comes as contracts lasting many years, so the orders already signed show what is ahead, and profit depends on delivering fixed-price programmes without overruns. Some, such as Airbus and Boeing, also build airliners, so their shares move with air travel as well as with defence budgets.
• Naval (stage: Platforms), 5 stocks: HII, BWXT, TKMS.DE, FCT.MI, BAB.L. Combined market cap $40.9bn, 0.8% of the theme. Price change of the typical stock (median): 7 days +2.7%, 1 month -2.2%, 3 months -0.5%, 6 months -23.4%, this year so far -20.4%. 1 of 5 are in an uptrend (above their 200-day line), 20%. Typical price against next year's expected earnings: 15.2x. Typical price against the last year's earnings: 23.6x. Typical revenue growth: +10.9%. Typical earnings-per-share growth: +14.1%. Typical operating margin: 5.3%. Typical net margin: 4.1%. Typical distance below 52-week high: 40.9%. Typical gap to analysts' average target: +37.4%. How this business works: Builds and maintains warships and submarines, and the nuclear parts inside them. Programmes run for decades and a yard can only build so many hulls at once, so shipyard space and skilled workers can limit growth as much as orders do.
• Land and munitions (stage: Weapons), 6 stocks: RHM.DE, R3NK.DE, KOG.OL, OSK, CHG.L, CSG.AS. Combined market cap $118.4bn, 2.5% of the theme. Price change of the typical stock (median): 7 days +9.2%, 1 month -0.8%, 3 months +3.1%, 6 months -19.9%, this year so far +2.3%. 2 of 5 are in an uptrend (above their 200-day line), 40%. Typical price against next year's expected earnings: 19.1x. Typical price against the last year's earnings: 41.6x. Typical revenue growth: +12.5%. Typical earnings-per-share growth: -7.6%. Typical operating margin: 12.2%. Typical net margin: 6.9%. Typical distance below 52-week high: 37.1%. Typical gap to analysts' average target: +36.4%. How this business works: Makes armoured vehicles, artillery, ammunition and missiles. Ammunition is used up and has to be restocked, so demand rises quickly when governments rebuild their stockpiles, and much of it depends on European defence budgets.
• Aero engines (stage: Enablers), 4 stocks: GE, RR.L, SAF.PA, MTX.DE. Combined market cap $642.6bn, 13.3% of the theme. Price change of the typical stock (median): 7 days +0.7%, 1 month -1.2%, 3 months -2.4%, 6 months +3.1%, this year so far +5.0%. 3 of 4 are in an uptrend (above their 200-day line), 75%. Typical price against next year's expected earnings: 25.6x. Typical price against the last year's earnings: 35.5x. Typical revenue growth: +18.6%. Typical earnings-per-share growth: -39.2%. Typical operating margin: 17.6%. Typical net margin: 12.3%. Typical distance below 52-week high: 14.2%. Typical gap to analysts' average target: +22.5%. How this business works: Makes jet engines for military and civil aircraft. Most of the profit comes from servicing engines already in the air, over decades, so it follows how much aircraft fly more than how many new ones are ordered. Civil aviation is the larger part of the business, so these engine makers move with airline traffic as much as with defence budgets.
• Components (stage: Enablers), 5 stocks: HWM, TDG, HEI, ARXS, AADX. Combined market cap $219.7bn, 4.6% of the theme. Price change of the typical stock (median): 7 days +2.8%, 1 month +3.5%, 3 months -9.6%, 6 months -1.8%, this year so far -4.2%. 0 of 3 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 34.0x. Typical price against the last year's earnings: 49.6x. Typical revenue growth: +24.1%. Typical earnings-per-share growth: +32.5%. Typical operating margin: 24.0%. Typical net margin: 16.4%. Typical distance below 52-week high: 22.1%. Typical gap to analysts' average target: +26.1%. How this business works: Makes the specialised parts that go into aircraft and defence systems, airliners as much as military aircraft. Many parts are certified for one aircraft and have few other suppliers, and replacement parts sold over an aircraft's life earn more than the originals.
• Electronics (stage: Enablers), 10 stocks: LHX, HO.PA, HAG.DE, SAAB-B.ST, ESLT, DRS, CW, TDY, MRCY, QQ.L. Combined market cap $246.7bn, 5.1% of the theme. Price change of the typical stock (median): 7 days +6.0%, 1 month -0.5%, 3 months -0.3%, 6 months -11.0%, this year so far +8.5%. 5 of 10 are in an uptrend (above their 200-day line), 50%. Typical price against next year's expected earnings: 26.6x. Typical price against the last year's earnings: 32.2x. Typical revenue growth: +9.1%. Typical earnings-per-share growth: +27.9%. Typical operating margin: 10.4%. Typical net margin: 7.0%. Typical distance below 52-week high: 20.3%. Typical gap to analysts' average target: +24.0%. How this business works: Makes the sensors, radars, radios and electronic-warfare systems fitted to aircraft, ships and vehicles. An upgrade can be fitted to equipment already in service, so spending here can rise without any new platforms being ordered.
• Software and services (stage: Software), 7 stocks: PLTR, BAH, LDOS, CACI, SAIC, PSN, BBAI. Combined market cap $496.5bn, 10.3% of the theme. Price change of the typical stock (median): 7 days -1.2%, 1 month -3.5%, 3 months +15.5%, 6 months -7.8%, this year so far -10.0%. 3 of 7 are in an uptrend (above their 200-day line), 43%. Typical price against next year's expected earnings: 12.2x. Typical price against the last year's earnings: 20.5x. Typical revenue growth: +7.2%. Typical earnings-per-share growth: -6.6%. Typical operating margin: 9.5%. Typical net margin: 5.6%. Typical distance below 52-week high: 31.9%. Typical gap to analysts' average target: +19.3%. How this business works: Sells software, analysis and IT services to defence and intelligence agencies. Most are contractors paid for their staff's time on government contracts, with thin, steady profits tied to the US budget. A few sell software instead and are priced very differently.
• 2026-10-15 [AVAV]: Hegseth pushed for $50B in mass drone production and a generational rise in defense investment, yet AeroVironment closed 5.1% lower. Why it matters: The Pentagon's rhetoric on drones and autonomy was strong, and the Army widened its drone marketplace to 33 nations. The listed drone name still fell, so the policy signal did not translate into support for the stock today. These are statements of need, not funded awards to a named company.

Electronics has the theme's best typical stock, and engine makers, which earn most profit servicing engines already flying, have the highest share in an uptrend.

• Electronics (stage: Enablers), 10 stocks: LHX, HO.PA, HAG.DE, SAAB-B.ST, ESLT, DRS, CW, TDY, MRCY, QQ.L. Combined market cap $246.7bn, 5.1% of the theme. Price change of the typical stock (median): 7 days +6.0%, 1 month -0.5%, 3 months -0.3%, 6 months -11.0%, this year so far +8.5%. 5 of 10 are in an uptrend (above their 200-day line), 50%. Typical price against next year's expected earnings: 26.6x. Typical price against the last year's earnings: 32.2x. Typical revenue growth: +9.1%. Typical earnings-per-share growth: +27.9%. Typical operating margin: 10.4%. Typical net margin: 7.0%. Typical distance below 52-week high: 20.3%. Typical gap to analysts' average target: +24.0%. How this business works: Makes the sensors, radars, radios and electronic-warfare systems fitted to aircraft, ships and vehicles. An upgrade can be fitted to equipment already in service, so spending here can rise without any new platforms being ordered.
• Aero engines (stage: Enablers), 4 stocks: GE, RR.L, SAF.PA, MTX.DE. Combined market cap $642.6bn, 13.3% of the theme. Price change of the typical stock (median): 7 days +0.7%, 1 month -1.2%, 3 months -2.4%, 6 months +3.1%, this year so far +5.0%. 3 of 4 are in an uptrend (above their 200-day line), 75%. Typical price against next year's expected earnings: 25.6x. Typical price against the last year's earnings: 35.5x. Typical revenue growth: +18.6%. Typical earnings-per-share growth: -39.2%. Typical operating margin: 17.6%. Typical net margin: 12.3%. Typical distance below 52-week high: 14.2%. Typical gap to analysts' average target: +22.5%. How this business works: Makes jet engines for military and civil aircraft. Most of the profit comes from servicing engines already in the air, over decades, so it follows how much aircraft fly more than how many new ones are ordered. Civil aviation is the larger part of the business, so these engine makers move with airline traffic as much as with defence budgets.
• Space (stage: Space), 11 stocks: SPCX, RKLB, ASTS, PL, IRDM, LUNR, RDW, FLY, VOYG, KRMN, ECHO. Combined market cap $2.02tn, 41.9% of the theme. Price change of the typical stock (median): 7 days -12.4%, 1 month -17.4%, 3 months -13.1%, 6 months -46.3%, this year so far -26.1%. 1 of 10 are in an uptrend (above their 200-day line), 10%. Typical price against next year's expected earnings: 36.5x. Typical price against the last year's earnings: 84.7x. Typical revenue growth: +62.0%. Typical earnings-per-share growth: +32.5%. Typical operating margin: -27.5%. Typical net margin: -38.7%. Typical distance below 52-week high: 68.5%. Typical gap to analysts' average target: +82.7%. How this business works: Launches rockets and builds and operates satellites. Many of these companies are young and not yet profitable, and they depend on a small number of launches or government contracts going well.
• Primes (stage: Platforms), 9 stocks: LMT, NOC, GD, RTX, BA, BA.L, AIR.PA, LDO.MI, AM.PA. Combined market cap $1.02tn, 21.2% of the theme. Price change of the typical stock (median): 7 days +6.6%, 1 month -1.5%, 3 months +0.5%, 6 months -6.2%, this year so far +4.1%. 5 of 9 are in an uptrend (above their 200-day line), 56%. Typical price against next year's expected earnings: 18.5x. Typical price against the last year's earnings: 25.2x. Typical revenue growth: +10.5%. Typical earnings-per-share growth: +21.0%. Typical operating margin: 10.4%. Typical net margin: 8.2%. Typical distance below 52-week high: 16.0%. Typical gap to analysts' average target: +18.2%. How this business works: The lead contractors governments order aircraft, missiles and whole systems from. Work comes as contracts lasting many years, so the orders already signed show what is ahead, and profit depends on delivering fixed-price programmes without overruns. Some, such as Airbus and Boeing, also build airliners, so their shares move with air travel as well as with defence budgets.
• Naval (stage: Platforms), 5 stocks: HII, BWXT, TKMS.DE, FCT.MI, BAB.L. Combined market cap $40.9bn, 0.8% of the theme. Price change of the typical stock (median): 7 days +2.7%, 1 month -2.2%, 3 months -0.5%, 6 months -23.4%, this year so far -20.4%. 1 of 5 are in an uptrend (above their 200-day line), 20%. Typical price against next year's expected earnings: 15.2x. Typical price against the last year's earnings: 23.6x. Typical revenue growth: +10.9%. Typical earnings-per-share growth: +14.1%. Typical operating margin: 5.3%. Typical net margin: 4.1%. Typical distance below 52-week high: 40.9%. Typical gap to analysts' average target: +37.4%. How this business works: Builds and maintains warships and submarines, and the nuclear parts inside them. Programmes run for decades and a yard can only build so many hulls at once, so shipyard space and skilled workers can limit growth as much as orders do.
• Land and munitions (stage: Weapons), 6 stocks: RHM.DE, R3NK.DE, KOG.OL, OSK, CHG.L, CSG.AS. Combined market cap $118.4bn, 2.5% of the theme. Price change of the typical stock (median): 7 days +9.2%, 1 month -0.8%, 3 months +3.1%, 6 months -19.9%, this year so far +2.3%. 2 of 5 are in an uptrend (above their 200-day line), 40%. Typical price against next year's expected earnings: 19.1x. Typical price against the last year's earnings: 41.6x. Typical revenue growth: +12.5%. Typical earnings-per-share growth: -7.6%. Typical operating margin: 12.2%. Typical net margin: 6.9%. Typical distance below 52-week high: 37.1%. Typical gap to analysts' average target: +36.4%. How this business works: Makes armoured vehicles, artillery, ammunition and missiles. Ammunition is used up and has to be restocked, so demand rises quickly when governments rebuild their stockpiles, and much of it depends on European defence budgets.
• Drones and autonomy (stage: Weapons), 2 stocks: KTOS, AVAV. Combined market cap $13.8bn, 0.3% of the theme. Price change of the typical stock (median): 7 days -7.9%, 1 month -18.6%, 3 months -13.3%, 6 months -39.7%, this year so far -48.2%. 0 of 2 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 31.9x. Typical price against the last year's earnings: 237.8x. Typical revenue growth: +18.1%. Typical earnings-per-share growth: +0.0%. Typical operating margin: -5.7%. Typical net margin: -4.1%. Typical distance below 52-week high: 70.0%. Typical gap to analysts' average target: +110.4%. How this business works: Makes uncrewed aircraft and the systems that fly them. The companies are small beside the primes, and sales arrive as a few large contract awards, so results can swing sharply from one quarter to the next.
• Components (stage: Enablers), 5 stocks: HWM, TDG, HEI, ARXS, AADX. Combined market cap $219.7bn, 4.6% of the theme. Price change of the typical stock (median): 7 days +2.8%, 1 month +3.5%, 3 months -9.6%, 6 months -1.8%, this year so far -4.2%. 0 of 3 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 34.0x. Typical price against the last year's earnings: 49.6x. Typical revenue growth: +24.1%. Typical earnings-per-share growth: +32.5%. Typical operating margin: 24.0%. Typical net margin: 16.4%. Typical distance below 52-week high: 22.1%. Typical gap to analysts' average target: +26.1%. How this business works: Makes the specialised parts that go into aircraft and defence systems, airliners as much as military aircraft. Many parts are certified for one aircraft and have few other suppliers, and replacement parts sold over an aircraft's life earn more than the originals.
• Software and services (stage: Software), 7 stocks: PLTR, BAH, LDOS, CACI, SAIC, PSN, BBAI. Combined market cap $496.5bn, 10.3% of the theme. Price change of the typical stock (median): 7 days -1.2%, 1 month -3.5%, 3 months +15.5%, 6 months -7.8%, this year so far -10.0%. 3 of 7 are in an uptrend (above their 200-day line), 43%. Typical price against next year's expected earnings: 12.2x. Typical price against the last year's earnings: 20.5x. Typical revenue growth: +7.2%. Typical earnings-per-share growth: -6.6%. Typical operating margin: 9.5%. Typical net margin: 5.6%. Typical distance below 52-week high: 31.9%. Typical gap to analysts' average target: +19.3%. How this business works: Sells software, analysis and IT services to defence and intelligence agencies. Most are contractors paid for their staff's time on government contracts, with thin, steady profits tied to the US budget. A few sell software instead and are priced very differently.
• 2026-10-16: Sector strength is still thin overall, with electronics the one clear improver this week. Why it matters: Electronics strengthened sharply, which fits Elbit's gain today. Primes edged up from a very low base, and aero-engines weakened a little. Naval, land munitions, drones and autonomy, components and space were all unchanged and weak, and software-services held firm. Today's rallies are therefore happening in a mostly weak backdrop.

The typical space stock costs 36.5 times next year's expected profit, yet the typical one still loses money on its sales.

• Space (stage: Space), 11 stocks: SPCX, RKLB, ASTS, PL, IRDM, LUNR, RDW, FLY, VOYG, KRMN, ECHO. Combined market cap $2.02tn, 41.9% of the theme. Price change of the typical stock (median): 7 days -12.4%, 1 month -17.4%, 3 months -13.1%, 6 months -46.3%, this year so far -26.1%. 1 of 10 are in an uptrend (above their 200-day line), 10%. Typical price against next year's expected earnings: 36.5x. Typical price against the last year's earnings: 84.7x. Typical revenue growth: +62.0%. Typical earnings-per-share growth: +32.5%. Typical operating margin: -27.5%. Typical net margin: -38.7%. Typical distance below 52-week high: 68.5%. Typical gap to analysts' average target: +82.7%. How this business works: Launches rockets and builds and operates satellites. Many of these companies are young and not yet profitable, and they depend on a small number of launches or government contracts going well.
• Primes (stage: Platforms), 9 stocks: LMT, NOC, GD, RTX, BA, BA.L, AIR.PA, LDO.MI, AM.PA. Combined market cap $1.02tn, 21.2% of the theme. Price change of the typical stock (median): 7 days +6.6%, 1 month -1.5%, 3 months +0.5%, 6 months -6.2%, this year so far +4.1%. 5 of 9 are in an uptrend (above their 200-day line), 56%. Typical price against next year's expected earnings: 18.5x. Typical price against the last year's earnings: 25.2x. Typical revenue growth: +10.5%. Typical earnings-per-share growth: +21.0%. Typical operating margin: 10.4%. Typical net margin: 8.2%. Typical distance below 52-week high: 16.0%. Typical gap to analysts' average target: +18.2%. How this business works: The lead contractors governments order aircraft, missiles and whole systems from. Work comes as contracts lasting many years, so the orders already signed show what is ahead, and profit depends on delivering fixed-price programmes without overruns. Some, such as Airbus and Boeing, also build airliners, so their shares move with air travel as well as with defence budgets.
• Naval (stage: Platforms), 5 stocks: HII, BWXT, TKMS.DE, FCT.MI, BAB.L. Combined market cap $40.9bn, 0.8% of the theme. Price change of the typical stock (median): 7 days +2.7%, 1 month -2.2%, 3 months -0.5%, 6 months -23.4%, this year so far -20.4%. 1 of 5 are in an uptrend (above their 200-day line), 20%. Typical price against next year's expected earnings: 15.2x. Typical price against the last year's earnings: 23.6x. Typical revenue growth: +10.9%. Typical earnings-per-share growth: +14.1%. Typical operating margin: 5.3%. Typical net margin: 4.1%. Typical distance below 52-week high: 40.9%. Typical gap to analysts' average target: +37.4%. How this business works: Builds and maintains warships and submarines, and the nuclear parts inside them. Programmes run for decades and a yard can only build so many hulls at once, so shipyard space and skilled workers can limit growth as much as orders do.
• Land and munitions (stage: Weapons), 6 stocks: RHM.DE, R3NK.DE, KOG.OL, OSK, CHG.L, CSG.AS. Combined market cap $118.4bn, 2.5% of the theme. Price change of the typical stock (median): 7 days +9.2%, 1 month -0.8%, 3 months +3.1%, 6 months -19.9%, this year so far +2.3%. 2 of 5 are in an uptrend (above their 200-day line), 40%. Typical price against next year's expected earnings: 19.1x. Typical price against the last year's earnings: 41.6x. Typical revenue growth: +12.5%. Typical earnings-per-share growth: -7.6%. Typical operating margin: 12.2%. Typical net margin: 6.9%. Typical distance below 52-week high: 37.1%. Typical gap to analysts' average target: +36.4%. How this business works: Makes armoured vehicles, artillery, ammunition and missiles. Ammunition is used up and has to be restocked, so demand rises quickly when governments rebuild their stockpiles, and much of it depends on European defence budgets.
• Drones and autonomy (stage: Weapons), 2 stocks: KTOS, AVAV. Combined market cap $13.8bn, 0.3% of the theme. Price change of the typical stock (median): 7 days -7.9%, 1 month -18.6%, 3 months -13.3%, 6 months -39.7%, this year so far -48.2%. 0 of 2 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 31.9x. Typical price against the last year's earnings: 237.8x. Typical revenue growth: +18.1%. Typical earnings-per-share growth: +0.0%. Typical operating margin: -5.7%. Typical net margin: -4.1%. Typical distance below 52-week high: 70.0%. Typical gap to analysts' average target: +110.4%. How this business works: Makes uncrewed aircraft and the systems that fly them. The companies are small beside the primes, and sales arrive as a few large contract awards, so results can swing sharply from one quarter to the next.
• Aero engines (stage: Enablers), 4 stocks: GE, RR.L, SAF.PA, MTX.DE. Combined market cap $642.6bn, 13.3% of the theme. Price change of the typical stock (median): 7 days +0.7%, 1 month -1.2%, 3 months -2.4%, 6 months +3.1%, this year so far +5.0%. 3 of 4 are in an uptrend (above their 200-day line), 75%. Typical price against next year's expected earnings: 25.6x. Typical price against the last year's earnings: 35.5x. Typical revenue growth: +18.6%. Typical earnings-per-share growth: -39.2%. Typical operating margin: 17.6%. Typical net margin: 12.3%. Typical distance below 52-week high: 14.2%. Typical gap to analysts' average target: +22.5%. How this business works: Makes jet engines for military and civil aircraft. Most of the profit comes from servicing engines already in the air, over decades, so it follows how much aircraft fly more than how many new ones are ordered. Civil aviation is the larger part of the business, so these engine makers move with airline traffic as much as with defence budgets.
• Components (stage: Enablers), 5 stocks: HWM, TDG, HEI, ARXS, AADX. Combined market cap $219.7bn, 4.6% of the theme. Price change of the typical stock (median): 7 days +2.8%, 1 month +3.5%, 3 months -9.6%, 6 months -1.8%, this year so far -4.2%. 0 of 3 are in an uptrend (above their 200-day line), 0%. Typical price against next year's expected earnings: 34.0x. Typical price against the last year's earnings: 49.6x. Typical revenue growth: +24.1%. Typical earnings-per-share growth: +32.5%. Typical operating margin: 24.0%. Typical net margin: 16.4%. Typical distance below 52-week high: 22.1%. Typical gap to analysts' average target: +26.1%. How this business works: Makes the specialised parts that go into aircraft and defence systems, airliners as much as military aircraft. Many parts are certified for one aircraft and have few other suppliers, and replacement parts sold over an aircraft's life earn more than the originals.
• Electronics (stage: Enablers), 10 stocks: LHX, HO.PA, HAG.DE, SAAB-B.ST, ESLT, DRS, CW, TDY, MRCY, QQ.L. Combined market cap $246.7bn, 5.1% of the theme. Price change of the typical stock (median): 7 days +6.0%, 1 month -0.5%, 3 months -0.3%, 6 months -11.0%, this year so far +8.5%. 5 of 10 are in an uptrend (above their 200-day line), 50%. Typical price against next year's expected earnings: 26.6x. Typical price against the last year's earnings: 32.2x. Typical revenue growth: +9.1%. Typical earnings-per-share growth: +27.9%. Typical operating margin: 10.4%. Typical net margin: 7.0%. Typical distance below 52-week high: 20.3%. Typical gap to analysts' average target: +24.0%. How this business works: Makes the sensors, radars, radios and electronic-warfare systems fitted to aircraft, ships and vehicles. An upgrade can be fitted to equipment already in service, so spending here can rise without any new platforms being ordered.
• Software and services (stage: Software), 7 stocks: PLTR, BAH, LDOS, CACI, SAIC, PSN, BBAI. Combined market cap $496.5bn, 10.3% of the theme. Price change of the typical stock (median): 7 days -1.2%, 1 month -3.5%, 3 months +15.5%, 6 months -7.8%, this year so far -10.0%. 3 of 7 are in an uptrend (above their 200-day line), 43%. Typical price against next year's expected earnings: 12.2x. Typical price against the last year's earnings: 20.5x. Typical revenue growth: +7.2%. Typical earnings-per-share growth: -6.6%. Typical operating margin: 9.5%. Typical net margin: 5.6%. Typical distance below 52-week high: 31.9%. Typical gap to analysts' average target: +19.3%. How this business works: Sells software, analysis and IT services to defence and intelligence agencies. Most are contractors paid for their staff's time on government contracts, with thin, steady profits tied to the US budget. A few sell software instead and are priced very differently.

Hensoldt, Elbit, Teledyne and QinetiQ all moved into an uptrend within the same few days, as the theme-wide reading jumped.

• Hensoldt (HAG.DE), Electronics. Market cap $11.4bn, 0.2% of the theme. Price change: 1 day +6.0%, 7 days +15.3%, 1 month +13.0%, 3 months +15.1%, 6 months +9.4%, this year so far +20.4%. In an uptrend: 10.0% above its 200-day line, on that side since 2026-10-14. 14.9% below its 52-week high. Price is 35.2x next year's expected earnings. Price is 84.5x the last year's earnings. Revenue growth, latest quarter on a year before: +22.2%. Operating margin 5.5% of sales. Net margin 4.5% of sales. Analysts' average target is +4.8% from the last close (16 analysts, consensus buy). Reports earnings 2026-11-05.
• Elbit Systems (ESLT), Electronics. Market cap $35.1bn, 0.7% of the theme. Price change: 1 day +1.9%, 7 days +15.4%, 1 month +2.5%, 3 months +2.0%, 6 months -13.2%, this year so far +31.3%. In an uptrend: 4.5% above its 200-day line, on that side since 2026-10-15. 25.7% below its 52-week high. Price is 40.6x next year's expected earnings. Price is 56.8x the last year's earnings. Revenue growth, latest quarter on a year before: +15.9%. Earnings-per-share growth: +34.2%. Operating margin 9.6% of sales. Net margin 7.4% of sales. Analysts' average target is +6.2% from the last close (6 analysts, consensus hold). Note: Held against the regional rule, as TSM is in AI Infrastructure: US-listed and structural to defence electronics.
• Teledyne (TDY), Electronics. Market cap $28.7bn, 0.6% of the theme. Price change: 1 day -0.2%, 7 days +0.8%, 1 month +2.9%, 3 months -2.7%, 6 months -2.7%, this year so far +21.1%. In an uptrend: 0.9% above its 200-day line, on that side since 2026-10-15. 11.3% below its 52-week high. Price is 23.1x next year's expected earnings. Price is 29.9x the last year's earnings. Revenue growth, latest quarter on a year before: +9.8%. Earnings-per-share growth: +21.2%. Operating margin 19.4% of sales. Net margin 15.3% of sales. Analysts' average target is +22.5% from the last close (12 analysts, consensus buy). Reports earnings 2026-10-21.
• QinetiQ (QQ.L), Electronics. Market cap $3.4bn, 0.1% of the theme. Price change: 1 day +4.0%, 7 days +8.7%, 1 month -0.2%, 3 months +9.5%, 6 months +2.6%, this year so far +12.5%. In an uptrend: 3.5% above its 200-day line, on that side since 2026-10-16. 13.8% below its 52-week high. Price is 13.1x next year's expected earnings. Price is 24.8x the last year's earnings. Revenue growth, latest quarter on a year before: +3.8%. Operating margin 12.9% of sales. Net margin 5.6% of sales. Analysts' average target is +14.1% from the last close (12 analysts, consensus buy). Reports earnings 2026-11-12.
• Saab (SAAB-B.ST), Electronics. Market cap $35.3bn, 0.7% of the theme. Price change: 1 day +2.9%, 7 days +8.4%, 1 month +8.8%, 3 months +14.9%, 6 months +9.4%, this year so far +21.4%. In an uptrend: 11.9% above its 200-day line, on that side since 2026-09-14. 13.2% below its 52-week high. Price is 65.3x next year's expected earnings. Price is 49.6x the last year's earnings. Revenue growth, latest quarter on a year before: +28.6%. Earnings-per-share growth: +39.9%. Operating margin 10.9% of sales. Net margin 8.1% of sales. Analysts' average target is -2.0% from the last close (14 analysts, consensus buy). Reports earnings 2026-10-23.
• Electronics (stage: Enablers), 10 stocks: LHX, HO.PA, HAG.DE, SAAB-B.ST, ESLT, DRS, CW, TDY, MRCY, QQ.L. Combined market cap $246.7bn, 5.1% of the theme. Price change of the typical stock (median): 7 days +6.0%, 1 month -0.5%, 3 months -0.3%, 6 months -11.0%, this year so far +8.5%. 5 of 10 are in an uptrend (above their 200-day line), 50%. Typical price against next year's expected earnings: 26.6x. Typical price against the last year's earnings: 32.2x. Typical revenue growth: +9.1%. Typical earnings-per-share growth: +27.9%. Typical operating margin: 10.4%. Typical net margin: 7.0%. Typical distance below 52-week high: 20.3%. Typical gap to analysts' average target: +24.0%. How this business works: Makes the sensors, radars, radios and electronic-warfare systems fitted to aircraft, ships and vehicles. An upgrade can be fitted to equipment already in service, so spending here can rise without any new platforms being ordered.
• Share of the theme's stocks in an uptrend over the last month of readings. 2026-09-26: 15 of 54 in an uptrend (28%). 2026-10-10: 9 of 55 in an uptrend (16%). 2026-10-17: 20 of 55 in an uptrend (36%). Highest in the window 36%, lowest 13%.

Saab is among the dearest stocks in the whole theme against expected profit, so its results carry a high bar.

• 2026-10-21: Teledyne (TDY, Electronics) reports earnings.
• 2026-10-23: Saab (SAAB-B.ST, Electronics) reports earnings.
• Saab (SAAB-B.ST), Electronics. Market cap $35.3bn, 0.7% of the theme. Price change: 1 day +2.9%, 7 days +8.4%, 1 month +8.8%, 3 months +14.9%, 6 months +9.4%, this year so far +21.4%. In an uptrend: 11.9% above its 200-day line, on that side since 2026-09-14. 13.2% below its 52-week high. Price is 65.3x next year's expected earnings. Price is 49.6x the last year's earnings. Revenue growth, latest quarter on a year before: +28.6%. Earnings-per-share growth: +39.9%. Operating margin 10.9% of sales. Net margin 8.1% of sales. Analysts' average target is -2.0% from the last close (14 analysts, consensus buy). Reports earnings 2026-10-23.
• Dearest price against next year's expected earnings, of 52 stocks with a figure: Rocket Lab (RKLB, Space) 884.3x; Palantir (PLTR, Software and services) 79.1x; SpaceX (SPCX, Space) 71.4x; Saab (SAAB-B.ST, Electronics) 65.3x; Boeing (BA, Primes) 50.4x.