Soaring Defense Spending Means Great News for These 2 Stocks
U.S. weapons spending could reach $1.5 trillion next year, and two defense contractors are positioned to benefit.
Overview
Defense spending worldwide is soaring, driven by ongoing global conflicts, severe weapons stockpile depletion, and rising government funding. The 2027 National Defense Authorization Act proposes $1.1 trillion in defense and national security funding by the U.S., while a $350 billion reconciliation package could push defense spending to nearly $1.5 trillion.
Lockheed Martin (NYSE: LMT) and RTX (NYSE: RTX) are well positioned to benefit from growing defense budgets, thanks to their international presence and crucial air and missile defense businesses. These contracts are seeing backlogs surge from domestic and international orders, providing revenue visibility for years to come. Here's what investors need to know.
An F-35 Lightning II; Image source: Getty Images.
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Originally published at www.fool.com.