A $1.5 Trillion Defense Budget Is on the Table. Here's the 1 Defense Stock I'd Buy First.
Honeywell Aerospace has too much upside at its current price not to invest in the stock.
Overview
Geopolitical pressures, from the Iran war to U.S.-China conflicts and the Russia-Ukraine war, provide plenty of reasons for defense stocks to have tailwinds in 2026. That's because these pressures are likely to increase global defense spending. At home, the fiscal 2027 National Defense Authorization Act, passed by the House on July 22 but still awaiting a vote in the Senate, proposes a record $1.15 trillion in U.S. military spending.
Plenty of defense stocks benefit from that extra spending, but one of the best buys right now is Honeywell Aerospace (NASDAQ: HONA). The company, which spun off from Honeywell Technologies in late June, is trading down more than 21% since its spinoff, falling from $220 per share to roughly $157 as of Sept. 11.
Details
There were valid reasons for the stock's tumble, mainly a trim to full-year guidance in the second-quarter earnings report. However, at its current share price, the stock is more than a bargain. Here's why I like this company.
Source
Originally published at www.fool.com.