3 Defense Stocks To Own In September 2026

Record tanker shipping costs and reduced traffic through the Strait of Hormuz have pushed energy supply risks back into the spotlight in late 2026. When sea lanes look fragile, investors often pay closer attention to businesses that build aircraft, missiles and security systems. This article breaks down three stocks from the Aerospace and Defense supply chain and explains how each could fit different risk profiles and portfolio goals.

The stocks covered below are only a small sample of the idea, and the full screen surfaced another 313 Aerospace and Defense companies with equally compelling narratives that are not discussed here. To go straight to the broader universe and identify, compare, and analyze your highest conviction opportunities, head into the Aerospace And Defense screener.

General Electric (GE)

Overview: General Electric, through GE Aerospace, designs, manufactures, and services commercial and defense jet engines and related aircraft systems worldwide.

Operations: GE Aerospace generates about US$37.7b from Commercial Engines & Services, US$11.5b from Defense & Propulsion Technologies, and US$1.4b from Corporate & Other.

Market Cap: US$339.4b

For investors focused on Aerospace and Defense, General Electric offers direct exposure to jet engine programs, lifecycle servicing, and long-term military propulsion work. Together, these activities may influence how resilient cash flows are across different aviation and defense cycles.

Acceleration of next generation engine programs such as adaptive cycle engines and CCA propulsion, supported by rising defense book to bill of 1.7x and a Defense & Propulsion Technologies backlog above US$30b, provides multi year visibility on future defense revenue and contribution to segment profit.

The key variable for GE Aerospace could be how one evolving supply chain decision ultimately affects margins and cash conversion.

That margin question is exactly what the full narrative for General Electric unpacks, including where GE Aerospace could still surprise investors as programs scale.

Lockheed Martin (LMT)

Overview: Lockheed Martin develops and supports military aircraft, missile systems, space hardware and mission systems for the U.S. and allied defense customers worldwide.

Operations: Lockheed Martin generates about US$31.2b from Aeronautics, US$19.8b from Rotary and Mission Systems, US$16.4b from Missiles and Fire Control, and US$13.8b from Space, with most revenue from the United States.

Market Cap: US$119.9b

Lockheed Martin matters for this Aerospace and Defense screen because its fighter jets and missile systems anchor some of the most critical long term defense programs on the planet.

"Lockheed Martin is moving munitions like PAC-3, THAAD, PrSM and JATM onto seven year framework agreements that aim to triple or quadruple production and allow the company to retain a larger share of cost savings from capacity investments such as robotics in Camden. This can support higher future revenue and structurally stronger net margins."

What happens to those margin ambitions if a single assumption about long term demand or cost savings quietly shifts in the background?

If that quiet shift matters to you, read the full narrative for Lockheed Martin to see how Lockheed Martin’s production ramp, contract mix and risks really line up.

Boeing (BA)

Overview: Boeing designs and builds commercial jetliners and defense, space, and related services that sit directly in global Aerospace and Defense supply chains.

Operations: Boeing generates about US$43.4b from Commercial Airplanes, US$29.4b from Defense, Space & Security, and US$21.3b from Global Services.

Market Cap: US$156.5b

Boeing matters for this Aerospace and Defense screen because its jetliners, military aircraft, and space hardware link directly to airline fleets and national security programs worldwide.

"Boeing's vast $522 billion commercial backlog, with 5,900 aircraft sold firm into the next decade, positions the company to disproportionately benefit from the expected doubling of global air travel demand by 2040, ensuring long-term revenue expansion that could materially outpace GDP growth and industry peers."

What investors really need to watch is how one unresolved production and certification pressure ultimately filters through to pricing power and margins.

If you want to see how that pressure could be masking Boeing’s next leg of earnings power, read the full narrative for Boeing for the full picture.

Seeking Alternatives Before The Crowd

Fresh ideas move first. Markets can reprice quickly when momentum builds, so under the radar stocks may move before most investors notice. Explore these themed lists as a starting point for your own research.

• Target income opportunities while yields are elevated by scanning the 8 dividend fortresses and focusing on companies with a history of consistent payments.
• Explore the infrastructure supporting AI by using the 85 AI infrastructure stocks to find businesses involved in supplying chips, power, and networks.
• Pursue potential long-term compounding with the 27 top founder-led companies and concentrate on enterprises where the original builders retain a meaningful stake and influence over the mission.

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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