This article looks at the 11 Best Military Technology Stocks to Buy Right Now.
Over the last few years, there has been a noticeable shift in military strategy with nations prioritizing agile and adaptable combat technology, such as AI-powered drones, that reduce reliance on ground forces and target enemy targets with pinpoint accuracy.
Several small and mid-cap companies, due to their prowess in affordable, next-generation military technology, have played a vital role in this evolving landscape.
At the same time, traditional defense contractors have also expanded their capabilities through acquisitions aimed at strengthening their offerings in areas such as artificial intelligence, communications, and cybersecurity.
Defense stocks have had another strong start to the year, driven by ongoing geopolitical conflicts in different parts of the world and President Trump’s call to increase the U.S. military budget substantially for 2027.
The NYSE Arca Defense Index has returned 12.71% year-to-date, as of the close on February 20, comfortably outpacing the S&P 500’s gains of a mere 0.74% during the period.
However, an executive order by President Trump in January this year that restricted dividends, share buybacks, and CEO payouts has raised concerns among some investors and industry experts.
The order forbids defense contractors from pursuing buybacks and paying dividends that come at the expense of increased production and improved supplies, ‘until such time as they are able to produce a superior product, on time and on budget’.
David Sowerby, managing director of Ancora Advisors, told Reuters earlier this month that while increased military spending was encouraging, government interference in capital allocation was like taking three-quarters of a step back. He also noted how limiting CEO payouts to $5 million a year could make the industry less attractive for top executives.
Charles Lieberman, chief investment officer of Advisors Capital Management, believes that defense companies already have enough resources available to build new facilities, but there are not enough orders for them currently to justify the need for such new investments. He was quoted as saying the following:
“Nobody reinvests in the business unless they have the orders to buy the product.”
With that said, let’s now head over and see some of the best military technology stocks to buy right now.
Pixabay/Public Domain
Our Methodology
We used screeners to identify a pool of defense stocks with a market cap of $2 billion or more. From there, we narrowed the list to companies with significant exposure to modern military technology segments and selected the top 11 with the highest number of hedge funds holding stakes as of Q3 2025. The stocks are ranked in ascending order of hedge fund sentiment. When two or more companies were tied on the metric, we used the higher market cap as the tiebreaker.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Military Technology Stocks to Buy Right Now
11. Planet Labs PBC (NYSE:PL)
Number of Hedge Fund Holders: 40
Planet Labs PBC (NYSE:PL) is among the 11 best military technology stocks to buy right now. On February 12, the company announced that its Berlin-based subsidiary, Planet Labs GmbH, had partnered with risk management system AXA Digital Commercial Platform (AXA DCP).
Under the agreement, AXA DCP will leverage data from Planet Labs’ satellites and basecamps, and integrate it with its AI-powered platform, which would assist in monitoring and tackling natural disasters in real time.
Access to the imagery will also allow AXA DCP to offer advanced environmental intelligence to its clients, enabling them to preempt events triggered by extreme climate.
In other news, Planet Labs PBC (NYSE:PL) at the recent 2026 Munich Security Conference announced that it would be forming the European Advisory Board and Defense and Intelligence (D&I) Advisory Board.
The decision to convene these two boards, which will comprise individuals with government, diplomatic, and defense experience, reflects the company’s commitment to advancing partnerships in Europe and delivering solutions for national security needs.
Planet Labs PBC (NYSE:PL) provides global, daily satellite imagery and geospatial solutions. The stock has returned 21% year-to-date, as of the close on February 20.
10. BWX Technologies, Inc. (NYSE:BWXT)
Number of Hedge Fund Holders: 54
BWX Technologies, Inc. (NYSE:BWXT) is among the 11 best military technology stocks to buy right now. Earlier this month, the company provided an update on its role in delivering on the goals of the executive orders issued by the Trump administration in May last year to strengthen the nuclear energy industry.
The company said it was forging ahead on the production of TRISO nuclear fuel compacts for Antares Nuclear, Inc., and was on track for on-time delivery after having started fuel fabrication in October. The fuel will be shipped to the Idaho National Laboratory after it is ready for Antares to perform a reactor demonstration.
The administration’s series of executive orders included Order 14301, requiring the U.S. Department of Energy to develop a pilot program for the construction of nuclear reactors and approve at least three reactors with criticality in each by July 4, 2026.
In other news, BWX Technologies, Inc. (NYSE:BWXT) on January 26 in Oak Ridge, Tennessee, inaugurated its Centrifuge Manufacturing Development Facility, marking a significant step towards the return of a domestic uranium enrichment facility in aid of national security.
The development follows a $1.5 billion contract awarded by the Department of Energy to build a program to support a reliable and stable supply of enriched uranium for defense purposes.
BWX Technologies, Inc. (NYSE:BWXT) is focused on providing nuclear solutions for global security, environmental protection, clean energy, and space exploration.
