Soaring Defense Spending Means Great News for These 2 Defense Stocks
Defense spending could surge by 50% in 2027, and these two companies are well positioned to benefit.
Overview
The U.S. plans to spend $1 trillion for defense in 2026, and the 2027 funding request stands at about $1.5 trillion, which would mark the largest year-over-year increase ever if approved. Rising military spending comes amid rising geopolitical tensions, including the U.S.-Iran and Ukraine-Russia conflicts. The U.S. is also looking to modernize the military and bolster the defense industrial base and has allocated capital for space-based missile defense initiatives.
Defense contractors should benefit from growing order books and long-term contracts that provide insight into future earnings. Against this capital-intensive backdrop, defense stocks Lockheed Martin (NYSE: LMT) and RTX Corporation (NYSE: RTX) stand out as beneficiaries due to their strong positions in the industry. Here's what investors need to know.
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Originally published at www.fool.com.