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Redwire Corporation (NYSE:RDW) is among the 8 Best Mid Cap Defense Stocks to Buy. The company showcased its upgraded Octopus E140 MWIR Electro-Optical/Infrared (EO/IR) aircraft payload during the Eurosatory event between June 15-19, 2026.

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The next-generation gyrostabilized aircraft payload is known for providing advanced intelligence, surveillance, and reconnaissance capabilities, along with impressive image stability.

The E140 MWIR is built for operating in challenging environments without compromising on the effectiveness of the operation. The system combines Mid-Wave Infrared (MWIR) sensing with HD electro-optical (EO) imaging and robust onboard processing.

According to Redwire Corporation (NYSE:RDW)'s press release, key capabilities include clear and stable imagery at stand-off distances, flawless performance during both day and night, high-quality zoom performance, integrated GPS/INS, advanced onboard processing, and more.

The stock remains on analysts' radar and sports a Moderate Buy rating, with an average upside potential of 55% as of the close on June 24.

Interest from institutional investors in the stock continues to grow. According to Insider Monkey's database for Q1 2026, 32 hedge funds held a stake in the company, up from 28 at the end of Q4 2025.

Redwire Corporation (NYSE:RDW) is a global space and defense technology company that leverages artificial intelligence and digital engineering to deliver advanced technologies related to autonomous systems, aerospace infrastructure, and multi-domain operations.

While we acknowledge the potential of RDW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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