10 Defense and Aerospace Stocks To Benefit From Trump’s Peace Through Strength Policy

1. Northrop Grumman Corporation (NYSE:NOC)

Northrop Grumman Corporation is an American manufacturer providing solutions in the fields of defense and commercial aerospace, electronics, and information technology (IT). Serving not only as a supplier to Boeing’s military aircraft programs, the giant is also known for making non-nuclear ships for the U.S. Navy. Analysts expect the company to follow a sustained growth path due to a surge in military spending, particularly from the U.S. Department of Defense.

Donald Trump in his inaugural speech stated to achieve “Peace through Strength”, implying expanding the military to ensure peace. With almost 86% of revenue generated from the U.S. Department of Defense, this promise could be fruitful for the company. Even if global conflicts subside during Trump’s term, increased defense spending in the US and EU should favor the company’s growth.

But that’s not all. International expansion continues to secure the company’s dominant position. NOC maintains a strong outlook for global demand in 2025, expecting a double-digit foreign revenue growth that surpasses the US growth rate. The Space System (SS) segment, in particular, is anticipated to witness growth throughout the year, with major restructuring facilitating both Aeronautics Systems (AS) and Defense Systems (DS).

Northrop Grumman Corporation is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held NOC at the end of the third quarter which was 49 in the previous quarter. While we acknowledge the potential of NOC as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.