Why You Should Avoid Palantir and Buy These 2 Defense Stocks Instead

Published September 20, 2026 · Category: Finance

Overview

Palantir Technologies (NASDAQ: PLTR) may be one of the biggest names in defense tech, but the biggest concern about it among investors doesn't relate to the business itself, but to the price they are paying for the stock. The company's growth is heavily concentrated in the U.S., while many of its software contracts provide less revenue visibility than the long-term contracts held by other defense stocks. RTX (NYSE: RTX) and Northrop Grumman (NYSE: NOC) offer more direct ways to benefit from the massive defense spending cycle that's underway.

Image source: Getty Images.

Palantir is a bet on the software side of defense and AI, while RTX is a bet on the physical systems governments need to defend their airspace and modernize their militaries.

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Source

Originally published at www.fool.com.

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