10 Best Performing Defense Stocks So Far in 2026

7. Elbit Systems Ltd. (NASDAQ:ESLT)

YTD Return: 33%

Number of Hedge Fund Holders: 25

Elbit Systems Ltd. (NASDAQ:ESLT) is among the 10 Best Performing Defense Stocks So Far in 2026, with returns of 33% year-to-date, as of the close on May 22. While Wall Street analysts have a Hold rating on the stock, they see a further 17% upside to its share price.

On May 20, the company announced that S&P Global Ratings Maalot Ltd. has raised its long-term rating to ‘ilAAA’ and reiterated its short-term rating of ‘ilA-1+’. The firm, in its rating report, also shared a stable outlook for the defense contractor’s B, C, and D-series notes.

In its report, S&P Global Ratings Maalot Ltd. noted Elbit Systems Ltd. (NASDAQ:ESLT)’s improving financial ratios, operational efficiency, a high backlog of orders, and ongoing geopolitical tensions as among the reasons behind the adjustment.

In other news, earlier this month, the company’s subsidiary, Cyclone, secured a $34 million contract from Israel’s Ministry of Defense to develop extended range capability for the country’s F-35 ‘Adir’ fighter jet.

The agreement will include building and integrating external fuel tanks based on an existing design previously prepared for the F-16. The contract is set to enhance the aircraft’s operational range and flexibility, while also cutting dependency on aerial refueling.

Elbit Systems Ltd. (NASDAQ:ESLT) is a defense technology company providing next-generation solutions across multiple domains, including airborne, land, and naval systems.