3 Defense Stocks Backed By Long Term Military Spending

Aerospace and defense stocks sit at the crossroads of global manufacturing, government spending and long-term infrastructure planning. With purchasing managers in Europe and Asia reporting mixed but generally resilient factory activity, and central banks keeping a close eye on inflation and growth, many investors are looking for areas of the market that are closely tied to long-duration contracts and essential services. The Aerospace And Defense screener filters for companies directly serving this space, which can help you cut through a crowded market. This article highlights 3 stocks from that screener to put on your radar.

L3Harris Technologies (LHX)

Overview: L3Harris Technologies is a long established US defense contractor that supplies mission critical communications, space and missile systems, and sensing solutions to government and commercial customers worldwide, with a focus on satellite payloads, tactical radios, hypersonic and missile propulsion, and advanced night vision equipment.

Market Cap: US$50.6b

L3Harris Technologies may appeal if you are looking for a large defense contractor closely tied to long duration space and missile programs. Recent results show 8% revenue growth, a 28% rise in GAAP EPS and a 37% rise in free cash flow for Q2 2026, supported by a record backlog and multi year contracts for missile tracking satellites and propulsion systems. The stock trades on a lower P/E than many aerospace and defense peers and is well below some fair value estimates. The flip side is a high debt load, fixed price contracts and reliance on other contractors, which can pressure margins and cash flows if programs run into delays or cost overruns.

L3Harris appears to be a story of solid programs trading on a quieter P/E, yet the full picture is not obvious at a glance. Get the DCF valuation analysis for L3Harris Technologies and see what the market might be missing next.

Huntington Ingalls Industries (HII)

Overview: Huntington Ingalls Industries builds and services the backbone of the U.S. fleet, from aircraft carriers and nuclear submarines to amphibious assault ships and Coast Guard cutters, and also supplies advanced mission technology such as C5ISR, autonomous systems, cybersecurity and AI enabled decision tools.

Market Cap: US$12.6b

Huntington Ingalls Industries gives you exposure to long running U.S. Navy shipbuilding programs and a growing mission technology business at a time when defense budgets and industrial base investment are in focus. A shipbuilding backlog of US$56.9b, recent Q2 2026 revenue of about US$3.42b with EPS ahead of expectations, and a very large new submarine award support multi year visibility. The Mission Technologies segment also taps into demand for autonomous and uncrewed systems. On the other side, earnings growth has been uneven over five years, the company relies heavily on external borrowing, and large programs can face timing delays. The recent insider selling and only modest dividend cover mean it is worth understanding the full risk reward balance before forming a view on HII.

Huntington Ingalls Industries sits at the center of long term U.S. naval programs, yet the full picture on backlog, borrowing and mission tech growth is not obvious. Read the 3 key rewards and 3 important warning signs (1 is major!) to see what might be quietly reshaping the story.

Moog (MOG.A)

Overview: Moog is an aerospace and defense supplier that designs and builds precision motion control systems that sit inside aircraft, spacecraft, missiles and industrial equipment, allowing these platforms to steer, stabilize, position and operate safely and accurately.

Market Cap: US$13.2b

Moog provides exposure to demand for high precision controls across defense, aerospace and industrial automation, supported by record Q3 2026 sales of about US$1.1b, a 23% higher 12 month backlog and raised guidance for sales, margins, EPS and cash flow. Earnings grew 33% over the past year and margins are improving, yet the stock trades on a higher P/E than the sector and depends heavily on elevated defense budgets and healthy commercial aircraft programs. The company also has high debt, ongoing tariff and working capital pressure and a valuation that some models flag as rich, making this a quality aerospace supplier where execution and capital discipline now matter as much as growth.

Moog’s accelerating orders and higher margins create a powerful story, yet the real surprise may lie in how future growth lines up against today’s price. See the analyst forecasts for Moog before one key factor tilts the picture.

The three Aerospace And Defense stocks in this article are only a starting point, since the full screener identified more than 300 additional companies with equally compelling narratives in the Aerospace And Defense screener. Use Simply Wall St to unlock, identify and analyze the specific catalysts and storylines that matter to you so you can focus on the highest conviction opportunities in this sector.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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