From Yahoo Finance: 2025-04-08 12:24:00

The White House plans to boost defense spending in the fiscal 2026 federal budget, causing defense stocks to surge. Shares of companies like Lockheed Martin and General Dynamics are up 5%, reflecting investor relief. President Trump approved a budget allocating $1 trillion to defense, an increase from 2025’s $951 billion projection. The details of the allocation are not yet known, but the increase signals a win for defense hawks. Geopolitical tensions globally suggest continued demand for defense products. Defense stocks offer income and growth potential, but investors should be aware of long cycles in the industry. The Motley Fool identified 10 top stocks to buy now, excluding Lockheed Martin, with potential for high returns. Stock Advisor has a total average return of 730%, outperforming the S&P 500’s 147%. Lou Whiteman holds positions in General Dynamics and Lockheed Martin, The Motley Fool has positions in AeroVironment and recommends Lockheed Martin and RTX.

Read more: Defense Stocks Surge on Trillion-Dollar Budget Talk