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7 Best Defense Stocks to Buy Now

By U.S. News & World Report

The fiscal 2026 National Defense Authorization Act calls for $924.7 billion in U.S. military spending, up slightly from 2025 levels. However, the ongoing war in Ukraine, tensions between China and Taiwan, and conflicts involving Israel, the U.S., Iran and Hamas in the Middle East may force governments to increase defense industry investment in coming years, which could serve as a tailwind for defense sector earnings.

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Defense stocks are attractive investments because they often have predictable, long-term government contracts. Here are seven of the best defense stocks to buy now, according to Morgan Stanley analysts:

Stock Implied Upside*
RTX Corp. (ticker: RTX) 6.5%
General Dynamics Corp. (GD) 11.1%
Northrop Grumman Corp. (NOC) 7.1%
Howmet Aerospace Inc. (HWM) 0.0%
TransDigm Group Inc. (TDG) 14.5%
L3Harris Technologies Inc. (LHX) 5.9%
Axon Enterprise Inc. (AXON) 19.5%

*Based on Jan. 16 closing price and Morgan Stanley price targets.

RTX Corp. (RTX)

RTX is the defense behemoth created by the 2020 merger of Raytheon and United Technologies. The company’s Collins and Pratt & Whitney subsidiaries are more focused on the commercial aerospace industry, but its Raytheon subsidiary develops advanced sensors and provides training, software and cybersecurity solutions for the U.S. intelligence community and the Department of War. Analyst Kristine Liwag says the market doesn’t seem to fully appreciate RTX’s attractive valuation and growth opportunities. This rare combination makes RTX Liwag’s top stock pick within the aerospace group. Morgan Stanley has an “overweight” rating and $215 price target for RTX stock, which closed at $201.92 on Jan. 16.

General Dynamics Corp. (GD)

General Dynamics is a diversified aerospace and defense company that produces a wide range of products, including Gulfstream jets, Abrams tanks and nuclear submarines. The majority of the company’s revenue comes from the U.S. government, particularly its large contracts with the Department of War. Liwag says General Dynamics is reaching the end of a research and development period at Gulfstream that could lead to a period of margin expansion as deliveries of the G800 and other new models ramp. She also anticipates improved Marine segment margins. Morgan Stanley has an “overweight” rating and $408 price target for GD stock, which closed at $367.38 on Jan. 16.

Northrop Grumman Corp. (NOC)

Northrop Grumman is one of the world’s largest weapons and military technology producers. The company’s Defense Systems segment provides battle management and missile systems products and services, while its Mission Systems segment focuses on airborne sensors and networks, as well as other military and intelligence mission solutions. Liwag says Northrop’s portfolio is strongly aligned with the War Department’s needs, particularly when it comes to the Air Force’s B-21 Raider and Sentinel nuclear modernization programs. In fact, Liwag says Northrop is her top defense stock pick. Morgan Stanley has an “overweight” rating and $714 price target for NOC stock, which closed at $666.90 on Jan. 16.

Howmet Aerospace Inc. (HWM)

Howmet Aerospace manufactures lightweight metal products, specializing in jet engine components, titanium structural parts, aerospace fastening systems and forged wheels. The company also provides defense solutions to its military partners, such as precision machining, integrated program management and metals expertise. Liwag says Howmet is positioned for margin expansion thanks to the company’s pricing power, strong market positioning and impressive execution. While the stock screens as relatively expensive based on its 2027 earnings multiple, Liwag says the premium valuation is more than justified given its technological advantages. Morgan Stanley has an “overweight” rating and $225 price target for HWM stock, which closed at $224.89 on Jan. 16.

[Read: 10 Best Health Care Stocks to Buy for 2026]

TransDigm Group Inc. (TDG)

TransDigm designs and manufactures original aircraft parts sold to manufacturers. The company also produces aftermarket replacement parts sold to commercial and military aircraft operators. In recent years, TransDigm has announced several significant buyouts, including acquiring SEI Industries, Raptor Scientific, and the components and subsystems business of Communications & Power Industries. Liwag says TransDigm is a mature “growth at a reasonable price” aerospace investment that trades at a discounted valuation to competitors. She predicts TransDigm will continue to execute and deploy capital to special dividends, acquisitions and buybacks. Morgan Stanley has an “overweight” rating and $1,660 price target for TDG stock, which closed at $1,450 on Jan. 16.

L3Harris Technologies Inc. (LHX)

L3Harris Technologies is an aerospace and defense company focused on technology-driven mission solutions. The company’s leading defense products include airborne ISR (intelligence, surveillance and reconnaissance) and electronic warfare systems, precision-guided munitions and propulsion products, communication systems, integrated vision solutions, and space and missile defense technologies. Liwag says L3Harris had positive operating momentum heading into 2026 and is positioned to capitalize on the future of warfare, including Golden Dome opportunities, with its highly defensive portfolio. She says L3Harris’ revenue growth outlook through 2028 is particularly impressive. Morgan Stanley has an “overweight” rating and $367 price target for LHX stock, which closed at $346.46 on Jan. 16.

Axon Enterprise Inc. (AXON)

Axon Enterprise is a law enforcement hardware and technology solutions provider. In addition to supplying body-worn cameras and virtual reality training to law enforcement, Axon’s military products include military body-worn cameras, drone technology, in-vehicle camera systems and digital management platforms. Analyst Meta Marshall says Axon’s exposure to key growth themes such as drones, artificial intelligence, and enterprise and international expansion will help the company grow its addressable market and maintain annual revenue growth in the 25%-to-30% range for the foreseeable future. Morgan Stanley has an “overweight” rating and $760 price target for AXON stock, which closed at $636.04 on Jan. 16.

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7 Best Defense Stocks to Buy Now originally appeared on usnews.com

Update 01/20/26: This story was published at an earlier date and has been updated with new information.

Trump secretly switched planes in Turkey amid security concerns, official says

By CNN
(CNN) — President Donald Trump secretly slipped out of Turkey last month on an alternate military plane, which he boarded while hidden inside a catering truck, as part of an elaborate ruse prompted by an Iranian threat, according to a US official.The clandestine security plan — first reported by the Washington Post and confirmed by CNN — underscored the lengths American officials went to in order to protect Trump from being assassinated by Iran.Trump had flown to Turkey on a new plane gifted by Qatar and meant to be used as Air Force One. But while he was on the trip, officials announced he would fly out on an older presidential plane, which CNN and others had previously reported was due to security concerns.That, though, was apparently part of the subterfuge. After boarding the older aircraft, a moment caught on camera, Trump secretly got off via the catering vehicle and moved to a smaller Air Force C-32A. The Qatari-gifted plane, the older aircraft used as Air Force One, and the C-32A then all departed separately for the UK. Once there, Trump got on board the Qatari-gifted plane and flew home.For the last month, much of the public discussion about the plane swap had been centered around the security capabilities of the Qatar-donated plane. Trump had boasted about the new aircraft — even though officials felt it was not as secure as other planes because it had to be retrofitted to serve as Air Force One — and the president seethed privately over coverage of its deficiencies, CNN previously reported.Now, attention is likely to shift to reporters and staffers unknowingly being aboard a decoy plane — and the nature of the threat that prompted such dramatic security measures.When asked about the reports of the secret plane switch, White House spokesperson Steven Cheung told CNN, “The new Air Force One is a state-of-the-art aircraft that has been fitted with high-level security protocols that ensure the safety of the President and his staff. As the President has said recently, there are many enemies of America who have their sights on him, and we use every tool at our disposal to address those threats.”Details from the presidential travel pool — a group of journalists who travel with the president and document his movements — provide a closer look at the unusual sequence of events surrounding Trump’s departure from Turkey following a consequential NATO Summit.Trump was aboard the old Air Force One in Ankara as of 8:26 p.m. local time, according to a pool report.Air Force One was wheels up at 8:43 p.m. local time, according to a subsequent pool report, 17 minutes later.The pool was also “advised to keep our window shades in the press cabin closed,” according to a print pool note from Politico’s Megan Messerly. This is extraordinarily unusual, and seemed indicative of a security situation; Trump would later say it was “because you’re probably on a dangerous flight because of the sleaze bags that we have to deal with.”A supplemental pool note from ABC’s Michelle Stoddart on Tuesday, sent in light of the secret plane revelation, noted that a Secret Secret agent came back to the press cabin to remind the media to keep the shades closed. When a photographer attempted to lift a shade, they were quickly told to lower it again. And when the press inquired with White House staff about why, they only said it was a request from Secret Service.Video shows what appeared to be a catering truck parked next to Air Force One at Ankara’s Esenboga Airport during that time, about seven minutes before the aircraft begins taxiing.The plane then was “wheels down” at RAF Mildenhall in England at 10:29 p.m. local time. But it wasn’t until roughly 20 minutes later that the pool notified news networks that an underwing shot — a camera angle from underneath the wing of the plane — was being set up to capture the president deplaning.That is an unusually long period of time — and it’s enough that Trump theoretically would be able to get off the smaller plane and back on Air Force One before cameras could capture it. For comparison, CNN was part of the pool on Sunday, when it took roughly eight minutes between wheels down and the underwing shot to be established.Trump was seen stepping off Air Force One about one minute after the pool alerted that the underwing shot was up.That timing was notably faster than what CNN crews typically experience. Usually, it takes several minutes for the president to deplane after the pool crew has assembled under the aircraft. The pool is generally in position before the first Air Force One door is opened and the stairs for the president are put into place.CNN reviewed pool video from Mildenhall that showed the stair car already in position and the aircraft door already open when the pool shot came up. There also appeared to be more security personnel on the tarmac than CNN crews are accustomed to seeing.Trump later boarded the new Qatari-gifted Air Force One at 11:01 p.m., according to pool notes. The pool captured video of the president walking from one aircraft to the other.CNN’s Kaitlan Collins and photojournalist Khalil Abdallah noted that when they traveled as part of the pool covering Davos and had to turn around and board a new aircraft due to what officials described as a minor electrical issue, the White House did not allow the CNN crew to film Trump transferring between planes. Instead, the crew was instructed to wait until he had boarded the new aircraft.During the flight on the Qatari gifted plane, Trump was asked what prompted the aircraft switch.Trump had said the change was to give US service members stationed at the base “a chance to tour the Aircraft.” Pressed on whether there were any other issues, Trump quickly responded, “no issues.”Trump was also asked why reporters had been instructed to lower the window shades on the aircraft.He said it was “because you’re probably on a dangerous flight.”“They didn’t ask me to close mine, but if they did, I would’ve done it,” Trump added.“But if I go, you go. Right?” Trump said. “Perhaps someday you want to change professions”Trump ultimately landed at Joint Base Andrews and deplaned Air Force One at 1:23 am ET.“He saluted and quickly loaded into the Beast,” a pool note said.This story was updated with additional reporting.The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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