3 U.S. Defense Stocks Tied To Rising Security Spending ყურადღ

Political uncertainty around President Trump’s election-focused address, the proposed SAVE America Act, and Iran war concerns is putting fresh attention on U.S. defense and security stocks. When policy priorities, funding paths, and public sentiment all feel up in the air, investors often reassess which companies might be positioned to benefit or face added risk. This article looks at three U.S. Defense and Security Stocks from our screener that appear more positively exposed to the current news cycle. You will see how each stock ties into the themes of security, resilience, and policy focus, and where potential opportunities and pitfalls may sit.

nLIGHT (LASR)

Overview: nLIGHT is a laser technology company that designs and manufactures semiconductor and fiber lasers used in aerospace and defense systems, factory automation, and micro-scale manufacturing. Its products power high energy laser weapons, industrial cutting and welding, and precision tools, with operations split between Laser Products and Advanced Development work for major defense and industrial customers around the world.

Operations: nLIGHT generates about US$201.8m from Products and US$88.1m from Development, with revenue concentrated in North America at roughly US$208.8m and supported by smaller contributions from Asia Pacific and EMEA.

Market Cap: US$3.83b

Investors looking at defense exposure may find nLIGHT interesting because it sits at the center of high energy laser weapon programs, including a recent Joint Laser Weapon System agreement with an initial US$44m award and a potential ceiling up to US$627m, at a time when security concerns and Iran tensions keep directed energy in focus. The business is still loss making and carries a rich valuation on P/S, with insider selling and high executive pay adding governance questions. Analysts expect earnings and revenue to improve and see scope for margin gains as amplifier products move from R&D into production. The key question is whether growing defense backlogs can offset execution risk, dependence on U.S. budgets, and pressure on commercial segments.

nLIGHT’s laser backlog and rich P/S are only half the story; the real tension sits between growth hopes and execution risk. Get the full picture in the 2 key rewards and 2 important warning signs

Benchmark Electronics (BHE)

Overview: Benchmark Electronics is a Tempe based engineering and manufacturing partner that helps original equipment manufacturers design, build, test, and service complex electronic systems used in aerospace and defense, advanced computing, medical devices, industrial equipment, and semiconductor capital equipment.

Operations: Benchmark Electronics generates about US$1.26b of revenue from the Americas, US$1.19b from Asia, and US$350m from Europe, after eliminating around US$87m of intersegment sales.

Market Cap: US$2.93b

Benchmark Electronics gives you exposure to mission critical defense and homeland security hardware at a time when election tension, Iran risks, and policy debate are pushing security spending to the forefront. The stock comes with a mix of strong execution and real pressure points. Recent contract wins in AI infrastructure, recognition as HPE’s Manufacturing Partner of the Year, and raised 2026 revenue guidance suggest customers are leaning on Benchmark for complex, liquid cooled computing systems, while Q1 results and index inclusion have sharpened institutional attention. At the same time, a rich P/E, margin pressure, higher funding risk, and insider selling around recent highs mean expectations are already demanding and execution missteps or policy delays could quickly bite into the story.

Benchmark Electronics appears to be quietly becoming a core manufacturing partner for complex AI and defense hardware, while its shares trade on demanding expectations. See how that balance of momentum and valuation risk plays out in the 1 key reward and 2 important warning signs

Bel Fuse (BELF.A)

Overview: Bel Fuse designs and manufactures power, protection, connectivity, and magnetic components that sit inside critical electronics for aerospace, defense, networking, industrial equipment, transportation, and data infrastructure, making its technology a behind the scenes enabler of secure communications and advanced defense systems.

Operations: Bel Fuse reports around US$701.7m as a segment adjustment item in its business revenue breakdown, reflecting how it allocates and reports results across its product groups.

Market Cap: US$3.82b

Bel Fuse stands out in this defense and security screen because it straddles both higher quality aerospace and defense programs and fast growing data and AI infrastructure, while still acting like a traditional components supplier that investors can analyze through earnings, margins, and end market mix. Recent commentary highlights strong earnings growth, expanding operating margins, and contribution from the Enercon acquisition in aerospace and defense. At the same time, tariffs on Chinese imports, weaker consumer demand, and reliance on higher risk external borrowing keep risk firmly on the table. With analysts paying close attention and multiple brokers initiating coverage, the real question is how that mix of defense exposure, AI upside, and tariff and funding headwinds nets out for Bel Fuse over the next chapter.

Bel Fuse’s earnings and margin story is getting attention, but the real intrigue is how its aerospace, defense, and AI exposure fits together in the full narrative for Bel Fuse

The three stocks here only scratch the surface of what is happening across U.S. defense and security, with the full screener surfacing 39 more companies with equally compelling narratives that you can review through the U.S. Defense and Security Stocks screener. Use Simply Wall St to identify, filter, and analyze the specific catalysts and storylines that matter most to you so you can focus on the ideas in this theme that you find most compelling.

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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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