European defense budgets are projected to grow 6.8% annually by 2035, surpassing the US, Russia, and China. Geopolitical tensions fuel a global defense supercycle. Increased spending expected to boost revenue and profitability for defense companies. Four European defense stocks identified as undervalued.

Rheinmetall, Leonardo, BAE Systems, and Thales are top undervalued defense stock picks. Rheinmetall has a Fair Value Estimate of EUR 2220.00 with a Wide Economic Moat Rating. Leonardo’s Fair Value Estimate is EUR 62.60 with a Narrow Economic Moat Rating. BAE Systems has a Fair Value Estimate of GBP 2250.00 with a Wide Economic Moat Rating. Thales has a Fair Value Estimate of EUR 308.00 with a Wide Economic Moat Rating.

Read more at Morningstar: Europe’s Top Defense Stock Picks