Shares of US defense contractors surged up to 5% in early trading on Jan. 8 after President Trump announced a potential $1.5 trillion defense budget for 2027. Bulls predict increased military procurement spending, benefiting existing and new defense contractors, especially those aligned with administration priorities like shipbuilding and missile defense in space. Despite uncertainties, fair value estimates for US defense contractors remain unchanged.

Read more at Morningstar: US Defense Stocks: Trump’s Budget Comment Buoys Share Prices