From Yahoo Finance: 2025-03-28 17:50:00

In 2025, the defense industry has seen growth despite global conflicts. American defense stocks fluctuated due to uncertainty in military spending. The creation of DOGE aided in identifying wasteful funding. Despite some setbacks, Citi analyst Jason Gursky believes now is the time to invest in American defense stocks.

Embraer S.A. (ERJ) has shown impressive growth in 2025 with over 33% year-to-date gains. High-value orders and agreements have boosted the company, including a $7 billion deal with Flexjet and an order from Japan’s ANA Holdings for 15 aircraft. Embraer’s robust financial results for 2024 have solidified investor confidence.

Ranked 6th among the best-performing defense stocks, ERJ remains a promising investment. However, the potential for higher returns lies in AI stocks. While ERJ continues to show strength, exploring undervalued AI stocks may offer more significant gains. For investors seeking opportunities in the AI sector, consider exploring the cheapest AI stocks for potential growth.

Read more: Is Embraer S.A. (ERJ) Among the Best Performing Defense Stocks So Far in 2025?