Defense Stocks

The fiscal 2025 National Defense Authorization Act (NDAA) calls for $923.3 billion in U.S. military spending, up 4.1% from 2024 levels. However, the ongoing war in Ukraine, tensions between China and Taiwan and conflicts between Israel and Iran, Hezbollah and Hamas in the Middle East may force the U.S. government to increase defense industry investment in the coming years, which could serve as a tailwind for defense sector earnings.

• RTX  RTX Corp.; defense behemoth created by the 2020 merger of Raytheon and United Technologies. The company’s Collins and Pratt & Whitney subsidiaries are more focused on the commercial aerospace industry, but its Raytheon subsidiary develops advanced sensors and provides training, software and cybersecurity solutions for the U.S. intelligence community and the Department of Defense. 

• LMT  Lockheed Martin Corp.; The company’s Collins and Pratt & Whitney subsidiaries are more focused on the commercial aerospace industry, but its Raytheon subsidiary develops advanced sensors and provides training, software and cybersecurity solutions for the U.S. intelligence community and the Department of Defense. 

• TDG  TransDigm Group Inc.; designs and manufactures original aircraft parts sold to manufacturers.  

• HWM  Howmet Aerospace Inc.; manufactures lightweight metal products, specializing in jet engine components, titanium structural parts, aerospace fastening systems and forged wheels.  

• NOC  Northrop Grumman Corp.; one of the world’s largest weapons and military technology producers.    

• AXON  Axon Enterprise Inc.;  In addition to supplying body-worn cameras and other hardware to law enforcement and military customers, Axon also provides training and cloud-based software services such as digital evidence management. 

• CW  Curtiss-Wright Corp.; provides specialized solutions, engineered products and other services primarily to the aerospace and defense markets.