7 Defense Stocks to Consider in an Unstable Global Landscape
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Source: Barron's
Geopolitical Tensions: Global security issues are increasingly prominent, with regions like Greenland, NATO, Venezuela, and Iran facing instability.
Impact on Defense Stocks: The ongoing geopolitical uncertainty, particularly during President Donald Trump’s second term, is expected to boost defense stock investments.
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Analyst Views on NOC
Wall Street analysts forecast NOC stock price to rise
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 558.300
Low
630.00
Averages
684.08
High
770.00
Current: 558.300
Low
630.00
Averages
684.08
High
770.00
About NOC
Northrop Grumman Corporation is a global aerospace and defense technology company. Its segments include Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems is engaged in the design, development, production, integration, sustainment and modernization of military aircraft systems for the United States Air Force, the United States Navy, other United States government agencies, and international customers. Defense Systems is engaged in the design, engineering, development, integration, and manufacturing of deterrent systems, advanced tactical weapons, and missile defense solutions. Mission Systems is a provider of mission solutions and multifunction systems. Its products and services include command, control, communications and computers, and reconnaissance (C4ISR) systems. Space Systems delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, and launch systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anduril Raises $5 Billion, Valuation Doubles to $61 Billion
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- Clear Market Positioning: Anduril is positioning itself as a key beneficiary in the U.S. government's military reindustrialization efforts under President Trump, particularly in projects related to the ambitious $185 billion missile defense system known as the Golden Dome.
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- Space Interceptor Investment: The program's procurement costs are expected to surpass $1 trillion, with around 70% allocated to a space-based interceptor system involving the deployment of approximately 7,800 satellites, aimed at providing nationwide coverage against threats from regional adversaries like North Korea.
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- Risks in U.S.-China Relations: Experts warn that any perceived softening of Trump's stance on Taiwan during the summit could be interpreted as a concession to China, potentially emboldening Beijing to take more aggressive actions that threaten Taiwan's autonomy.
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See More
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See More
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- Aggressive Investment Strategy: CEO Brian Schimpf stated that the company will 'aggressively' invest in manufacturing, research, and infrastructure to scale U.S. defense systems, aiming to address rising geopolitical risks.
- Clear Market Positioning: Anduril is positioning itself as a key beneficiary in the U.S. government's military reindustrialization efforts under President Trump, particularly in projects related to the ambitious $185 billion missile defense system known as the Golden Dome.
- Long-term Contract Security: This year, Anduril secured a 10-year U.S. Army enterprise contract with a ceiling of $20 billion and acquired a space missile and satellite tracking company, further solidifying its position in the defense contractor market.
See More
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- Space Interceptor Investment: The program's procurement costs are expected to surpass $1 trillion, with around 70% allocated to a space-based interceptor system involving the deployment of approximately 7,800 satellites, aimed at providing nationwide coverage against threats from regional adversaries like North Korea.
- Congressional Opposition: Critics on Capitol Hill have raised concerns, with Senator Jeff Merkley arguing that the initiative primarily benefits defense contractors at a significant expense to taxpayers, reflecting skepticism about the rising defense expenditures.
- Competitive Contract Opportunities: The U.S. Space Force has begun laying the groundwork for the program's orbital defenses, awarding contracts worth up to $3.2 billion to twelve companies, with future production contracts estimated between $1.8 billion and $3.4 billion annually, although early-stage development costs could reach up to $2 billion.
See More
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- Taiwan Arms Sales Controversy: Trump stated he would address U.S. arms sales to Taiwan at the upcoming Beijing summit, a move that could escalate tensions between the U.S. and China, especially given China's accusations of violating the 'one-China principle'.
- Taiwan's Special Defense Budget: Taiwanese lawmakers approved a $25 billion special defense budget, significantly lower than the $40 billion requested by the government, indicating a funding shortfall that may undermine Taiwan's defense capabilities against increasing Chinese military threats.
- Focus on Jimmy Lai's Case: Trump reiterated his call for the release of Hong Kong media tycoon Jimmy Lai, who was sentenced to 20 years for colluding with foreign forces, a stance likely to provoke strong opposition from Beijing and further complicate U.S.-China relations.
- Risks in U.S.-China Relations: Experts warn that any perceived softening of Trump's stance on Taiwan during the summit could be interpreted as a concession to China, potentially emboldening Beijing to take more aggressive actions that threaten Taiwan's autonomy.
See More
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- Golden Dome Initiative Launched: President Trump’s Executive Order 14186, published on January 27, 2025, inaugurated the Golden Dome program aimed at constructing a next-generation missile defense system to deter any foreign aerial attacks, reflecting the U.S. strategic commitment to national defense.
- Massive Contract Value: The U.S. Space Force announced awarding $3.2 billion in defense contracts to 12 companies to develop space-based interceptors, which are expected to significantly enhance the country's missile defense capabilities by filling existing gaps in the system.
- Diverse Participation: The contract includes well-known defense firms like Lockheed Martin and Northrop Grumman, alongside emerging space technology companies such as Gitai and True Anomaly, showcasing the Space Force's strategy to attract both traditional and non-traditional vendors for this initiative.
- Investment Opportunities Arise: Lockheed Martin stands out with a price-to-earnings ratio of 15.8 and a projected earnings growth rate of 18.5%, making it a focal point for investors looking to capitalize on the Golden Dome initiative, as it is expected to benefit from future contracts and solidify its leadership in the defense market.
See More
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- Executive Appointments: Starfighters Space has appointed two executives from Blue Origin, namely Jose Arias as Vice President of Space Operations and Catrina L. Medeiros as Director of STARLAUNCH Operations, both bringing over a decade of relevant experience to enhance operational efficiency and market competitiveness.
- Process Optimization: Arias's previous success in reducing integration cycle time from 76 days to just 13 days at Blue Origin is expected to significantly improve Starfighters' execution capabilities and responsiveness in the rapidly evolving commercial space sector.
- Strategic Intent: CEO Tim Franta emphasized that the future of the space economy hinges on “execution” rather than merely achieving access to space, highlighting the importance of reliable and repeatable launch capabilities for the company's long-term growth.
- Market Dynamics: With SpaceX's upcoming IPO and new Pentagon contracts reshaping the landscape, the entire aerospace industry is undergoing a talent and capital reallocation, and Starfighters' executive appointments reflect this trend, potentially strengthening its position in a competitive market.
See More
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- Executive Appointments: Starfighters Space, Inc. has appointed two senior leaders from Blue Origin's New Glenn program, namely Jose Arias as Vice President of Space Operations and Catrina L. Medeiros as Director of STARLAUNCH Operations, both bringing over a decade of relevant experience to enhance the company's operational capabilities.
- Process Optimization: Arias previously led process improvements at Blue Origin that reduced integration cycle time from 76 days to just 13 days, a significant efficiency gain that will directly impact Starfighters' competitive position in the commercial space sector, highlighting the importance of execution capabilities.
- Project Advancements: Starfighters has progressed its STARLAUNCH 1 project with GE Aerospace through wind tunnel testing and into Critical Design Review, while also expanding partnerships with Blackstar Orbital and Mu-G Technologies, demonstrating the company's proactive approach to technological innovation and market expansion.
- Market Context: Against the backdrop of the SpaceX IPO, Starfighters' strategic positioning becomes increasingly critical, with CEO Tim Franta emphasizing that the future challenge lies in executing space missions repeatedly and reliably, a perspective that aligns with the industry's growing focus on operational tempo and cadence, indicating the company's potential in the emerging space economy.
See More
