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If you’re looking for the best defense stocks to buy in 2025, this guide is for you!
A proper selection of defense stocks requires carefully researched and hand-picked companies that will benefit the investor. Our selection is exactly that!
Each of the companies that will be mentioned is with proven efficiency and is expected to grow extensively throughout the year 2025.
So, let’s get started right away!
Why Invest in Defense Stocks?
The most resilient industries are the defense sector, supported by government orders and long-term budget allocations. Military modernization, cybersecurity, and space technology fuel ongoing growth. Most defense firms have high dividend payouts, and investors can count on them for a steady source of dividends even in an economic slump. Defense firms have long-term budgets with governments, and with security issues rising globally, these firms can face ongoing demand, and thus, make a safe bet in an economic slump.
The Best Defense Stocks to Invest in 2025!
1. Byrna Technologies (BYRN)
Byrna Technologies is one of the best defense stocks with a high Due Diligence Score of 57, outperforming its industry peers by a huge margin. Byrna Technologies deals in non-lethal weapons for personal security, such as pepper ball launchers, whose demand is rising with civilians and security departments across the globe.
Byrna’s sales have experienced a huge boost, and its new technology in personal security puts it in a good position for future growth. The company’s stock has yielded a return of 379.08% in one year, and it is one of the best stocks in its sector with such a high return in such a short period of years.
2. Curtiss-Wright (CW)
Curtiss-Wright has been in the market for quite some time now as a well-known defense contractor and offers multiple products used for both defense and aerospace purposes.
With a due diligence score of 56 and almost 50% one-year performance in evaluation, it is a strong one with fundamentals to boot. It is a high-performing electronic and propulsive system and classified programs contractor for the military, and its portfolio encompasses an extensive list of defense-related products for use in sea, land, and air-based systems.
4. Lockheed Martin (LMT:NYQ)
Lockheed Martin is a giant in its industry, renowned for making its fighter plane, its missiles, and its advanced technology. Long-term orders from governments, particularly from the U.S. Department of Defense, drive its success. Lockheed Martin is its exclusive contractor for its F-35 plane, a model with steadily rising demand globally.
With steadily rising top and bottom lines and a record of dividend payments, its stocks are a safe bet for dividends and security. With its hypersonic missiles and defense in space, its position in its marketplace is even stronger.
5. Raytheon Technologies (RTX)
Raytheon Technologies is widely known for its work in its missile systems, its avionics, and its cybersecurity services. Raytheon Technologies’ strong book and secure top-line foundation drive its success.
Raytheon is a giant in its suite of missiles, including its Patriot missiles, adopted globally in many friendly nations. Raytheon entered its satellite-based services in its defense, setting it up for future demand. With its steadily rising earnings and its pursuit of innovation, Raytheon is a safe bet for investors.
6. Northrop Grumman (NOC)
Northrop Grumman is another giant in this industry, engaged in its autonomous, cybersecurity, and satellite technology services. Northrop Grumman is its exclusive contractor for its B-21 Raider stealth aircraft, setting it up for future high revenues. Northrop Grumman is a giant in satellite technology for its defending, a sector with strong future demand, fueled with security issues globally.
With its increased spending in its defense budget, Northrop Grumman is set up for future growth in its future outlooks. With its long-term security, its dividend record, and its pay record, its stocks are a safe bet for long-term investors.
7. Boeing (BA)
Boeing is still a safe bet even after its fall in commercial aviation. Its defense division continues to win lucrative government orders for military planes and space programs. Boeing is engaged in the production of fighter planes, missile defense, and launch operations in space.
The defense division of the company produces a security level over commercial aviation fluctuations, and therefore, it’s a safe opportunity for investment. With a boom in a couple of years anticipated, Boeing is a safe bet for investors.
8. Huntington Ingalls Industries (NYSE:HII)
With long-term visibility for its top-line work, Huntington is a company that has a long-term picture for its future orders. It produces aircraft carriers, submarine ships with nuclear, and amphibious attack ships, crucial for national security.
Huntington Ingalls is investing in unmanned ships at sea, preparing for future trends in defense. With its robust book of orders and healthy finances, it’s a safe bet for future growth for investors.
9. L3Harris Technologies (NYSE:LHX)
L3Harris Technologies is a giant in providing communications and electronic warfare systems. With high defense expenditures, particularly in cybersecurity and in space, the company receives its reward.
L3Harris strives to develop secure communications for use in the U.S. military, offering national security for America. It’s a giant in electronic warfare and espionage technology, a rising concern in modern times for national security. With healthy fundamentals and a dividend payout, it’s a safe bet for investors, too.
10. TransDigm Group (NYSE:TDG)
TransDigm Group is a specialist in parts for Aero and has a strong presence in both commercial and defense segments. It manufactures critical parts used in defense and military aircraft and defense platforms. TransDigm possesses a high-margin model and high price power. It has a high financial performance and consistently growing earnings, returning shareholder value, and a high dividend yield and strong financials, and a dividend investors’ preferred stock.
What to Remember Before Investing?
To make a proper investment in defense stocks, remember the following:
- Long-term Government Contract: Long-term government contracts make a firm less sensitive to demand and competition fluctuations.
- Dividend Yields: Most of the stocks in the defense sector pay dividend yields, and such stocks make a perfect part of a passive income portfolio.
- Global Conflicts and Military Modernization: Increased conflicts and modernization in the world drive growth in the sector.
- Technology Innovation: Space, AI, and cybersecurity companies have a high opportunity for growth.
Conclusion:
This was all you should know about the best defense stocks to buy in 2025!
Keep in mind that getting the hang of investing requires persistence, determination, and most importantly, willpower to not give up when experiencing a loss. Remain humble, make informed market decisions, and one day, you will be thankful for your persistence!
Good luck and happy trading!
