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.
9. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 58
General Dynamics Corporation (NYSE:GD) is among the 11 best military technology stocks to buy right now. According to a report in TipRanks, the company’s executive vice president, Mark Rayha, sold over $1.5 million of common stock on Tuesday.
The move has sparked buzz among investors who monitor trades like these to gain insights into the company’s outlook and strategy. Despite this significant insider trading activity, GD’s share price remained stable and gained 3% during the week.
The stock remains on analysts’ radar and currently carries a Moderate Buy rating, with an average share price potential of 12.26% as of the close of business on February 20.
General Dynamics Corporation (NYSE:GD) on January 28 reported strong results for the fourth quarter of fiscal 2025, beating estimates for both revenue and earnings. However, the company’s projected EPS for 2026 fell shy of Wall Street’s expectations, as the aerospace and defense giant anticipates a bigger impact from tariffs this year compared to 2025.
Following the results, BofA Securities reiterated a Buy rating on the stock with a $400 price target. The firm noted that the outlook for Gulfstream had disappointed investors, but the company’s defense business remains strong. On the other hand, Jefferies raised its price target on GD to $385 from $360, while maintaining a Hold rating.
General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.
8. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 59
L3Harris Technologies, Inc. (NYSE:LHX) is among the 11 best military technology stocks to buy right now. On February 16, the company announced that it had landed a contract worth around $400 million to power THAAD interceptors.
Under the agreement, the defense contractor will manufacture and supply additional solid rocket boost motors and Liquid Divert and Attitude Control Systems (LDACS) for THAAD to protect the nation against advanced missile threats.
The company produces the solid rocket boost motors at its facilities in Huntsville and Camden, while the LDACS are built in Los Angeles. In 2024, L3Harris Technologies, Inc. (NYSE:LHX) completed the 1,000th delivery of both for THAAD to the Missile Defense Agency.
In other news, General Dynamics Electric Boat provided L3Harris a full-rate production contract this week to build and deliver communication systems for the Virginia and Columbia class submarines, reflecting the company’s rich legacy of supporting naval programs in the country.
L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions that connect the air, land, space, sea, and cyber domains for national security.
7. Northrop Grumman Corporation (NYSE:NOC)
Number of Hedge Fund Holders: 59
Northrop Grumman Corporation (NYSE:NOC) is among the 11 best military technology stocks to buy right now. On February 18, Citigroup analyst John Godyn reiterated a Buy rating on the stock with a price target of $781.
This is a reaffirmation of the firm’s update on the stock on January 28, when it lifted the price target to $781 from $715 following the Q4 earnings report. In a research note to investors, Citigroup cited the company’s forecast of mid-single digit sales growth in 2026 as the reason behind the adjustment.
As of the close of business on February 20, the stock is a Moderate Buy with a one-year average share price target of $733.75, representing an upside of just over 1%.
Northrop Grumman Corporation (NYSE:NOC) posted revenue of $11.71 billion for the fourth quarter of 2025, an increase of about 10% from the prior year, driven by geopolitical conflicts that are fueling strong demand for arms. Adjusted net earnings stood at $7.23 per share, beating estimates by 25 cents and up 13% year-over-year.
In other news, on February 10, the defense contractor announced a quarterly dividend of $2.31 per share on common stock to all shareholders on record as of February 23. The payment is scheduled for March 11. The company was recently ranked among the 7 Best Defense Dividend Stocks to Buy by Insider Monkey.
Northrop Grumman Corporation (NYSE:NOC) is one of the world’s largest defense contractors. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.
6. Curtiss-Wright Corporation (NYSE:CW)
Number of Hedge Fund Holders: 62
Curtiss-Wright Corporation (NYSE:CW) is among the 11 best military technology stocks to buy right now. On February 13, Morgan Stanley analyst Kristine Liwag lifted the firm’s price target on the stock to $760 from $660, while keeping an Overweight rating.
The adjustment followed the company’s fourth quarter earnings call during the week in which it shared strong guidance for 2026, which Morgan Stanley believes sets Curtiss-Wright up well to surpass its three-year financial framework, according to a report on TipRanks.
On the same day, Stifel raised its price target on the stock to $650 from $625 with a Hold rating, while Citigroup hiked its price target to $718 from $661 and reiterated a Neutral rating.
Based on the recommendations of 6 analysts, Curtiss-Wright Corporation (NYSE:CW) is a Moderate Buy and has an average share price upside potential of close to 1% as of the close on February 20.
The stock has gained over 8% since Q4 results, with the company reporting strong year-over-year increases in both sales and diluted EPS. Investor sentiment has also been strengthened by an encouraging forecast of increased sales, operating margin expansion, and double-digit earnings growth in 2026.
Curtiss-Wright Corporation (NYSE:CW) provides engineered products, solutions, and services for the aerospace and defense markets.
5. TransDigm Group Incorporated (NYSE:TDG)
Number of Hedge Fund Holders: 68
TransDigm Group Incorporated (NYSE:TDG) is among the 11 best military technology stocks to buy right now. The stock has been on analysts’ radar and currently sports a Moderate Buy rating.
Recent analyst updates include Jefferies on February 8, cutting its price target to $1,565 from $1,635, citing recent quarter results, which it described as ‘relatively unimpressive’. However, the firm maintained its Buy rating on the stock, while noting that TDG was trading at a discount compared to competitors.
The aircraft parts maker reported net sales of $2.29 billion for Q1 2026, reflecting a 14% increase year-over-year. Adjusted profit per share came in at $8.23, beating estimates by 10 cents and improving from $7.83 in the prior year. However, net income decreased 9.7% from last year to $445 million, with the squeeze being attributed to higher interest expense.
TransDigm Group Incorporated (NYSE:TDG) further said that it anticipates adjusted profit per share for the year in the range of $37.42 and $39.34, whose midpoint is below Wall Street’s estimates of $39.03 per share, as the company’s margins get pressured by increased interest expense from recent acquisition and rising cost of raw materials.
Earlier on February 4, UBS also trimmed its price target to $1,800 from $1,804, amid concerns over a deceleration in aftermarket growth.
Despite recent target reductions following the earnings call, the stock boasts a significant upside potential of 20.10% as of the close on February 20.
TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.
4. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 68
Lockheed Martin Corporation (NYSE:LMT) is among the 11 best military technology stocks to buy right now. On February 18, Citigroup analyst John Godyn maintained a Neutral rating on the stock with a price target of $673.
The update is a reaffirmation of the firm’s earlier adjustment on February 5, when it lifted the price target to $673 from $572, following a series of price target increases for the stock after the defense contractor announced a profit-sharing deal with the U.S. government and strong Q4 results late last month.
In a press release dated January 29, Lockheed Martin Corporation (NYSE:LMT) said it had reached an agreement with the Department of War (DoW) to increase the production of THAAD interceptors to 400 per year from 96, building on a seven-year agreement with the Department of Defense (DoD) earlier in the month to more than triple the production capacity for its PAC-3 missile interceptors.
During the fourth quarter 2025 earnings call on January 29, Lockheed’s CEO Jim Taiclet noted that if the company surpasses the targets for production and profits for the THAAD and PAC-3 contracts, it would ‘start to share some of the increased profits with the U.S. government by plowing some of those increased profits back’.
The defense giant reported revenue of $20.3 billion for the fourth quarter, up 9% year over year. Diluted EPS stood at $5.80, compared with $2.22 in the prior year’s quarter. Investors were also buoyed by the company’s forecast of revenue and profit for 2026 above Wall Street’s estimates.
Lockheed Martin Corporation (NYSE:LMT) is one of the world’s largest defense contractors. It specializes in the research, design, and development of advanced technology systems, products, and services.
3. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 76
RTX Corporation (NYSE:RTX) is among the 11 best military technology stocks to buy right now. On February 17, Bernstein analyst Douglas Harned maintained a Market Perform rating on the stock with a price target of $204.
This is a reaffirmation of the firm’s earlier adjustment on January 29, when it raised the price target to $204 from $189, following the company’s fourth-quarter fiscal 2025 revenue and earnings beat.
As of the close of business on February 20, RTX Corporation (NYSE:RTX) is a Moderate Buy with an average share price upside of 6.70%.
The aerospace and defense contractor posted a revenue of $24.24 billion for the fourth quarter, representing a 12% increase from last year. Adjusted earnings per share were logged at $1.55, beating estimates by 8 cents. Investor sentiment was also bolstered by the company’s sales forecast for 2026, with the midpoint above analysts’ forecasts.
In other news, RTX Corporation (NYSE:RTX)’s board of directors on February 6 approved a quarterly cash dividend of $0.68 per common stock. It is scheduled to be paid on March 19 to all shareholders on record as of February 20.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
2. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 102
GE Aerospace (NYSE:GE) is among the 11 best military technology stocks to buy right now. On February 20, Morgan Stanley initiated coverage on the stock with an Overweight rating and announced a price target of $425.
According to TipRanks, the firm described the company as the ‘best in class’ stock in the industry and cited its ‘deep competitive moat’, while noting that it operated in a sector that had a high barrier to entry.
The Morgan Stanley analyst further added that it views a positive risk-reward skew of 2.9x and believes GE Aerospace (NYSE:GE) was on track to gain from upward adjustments to earnings and free cash flow.
As of the close of business on February 20, the stock is a Strong Buy with an average share price upside potential of 8%.
Earlier this month, the company declared a quarterly cash dividend of 47 cents per share to all shareholders on record as of the close on March 9. The payment is scheduled for April 27.
GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 25,000 military and 45,000 commercial aircraft engines.
1. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 106
The Boeing Company (NYSE:BA) is among the 11 best military technology stocks to buy right now. As of the close on February 20, the stock is a Strong Buy with an average share price upside potential of 20.11%.
The company has been in the news this week after receiving multi-billion dollar orders from three Vietnamese airlines for a total of 90 aircraft, amid ongoing negotiations between the Southeast Asian country and the United States over a new trade deal.
The agreements were signed during the visit of the leader of Vietnam’s Communist Party to the United States for the Board of Peace meeting.
These included a $22.5 billion deal with Sun PhuQuoc Airways for 40 787-9 Dreamliner jets and an $8.1 billion order from Vietnam Airlines for 50 737-8 aircraft. Moreover, budget airline Vietjet agreed to a $965 million financing deal with Griffin Global Asset Management to purchase 6 737-8 aircraft.
In other news, The Boeing Company (NYSE:BA) earlier this month secured a contract from the U.S. Air Force to provide a modernized flight deck for the C‑17A Globemaster III.
Under the terms of the agreement, the company will design, produce, and integrate a modernized flight deck for the aircraft, along with military certification. The C-17As will be equipped with modern, modular open systems architecture (MOSA), which will aid in ensuring smooth and affordable adoption of new capabilities.
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in more than 150 countries.
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