We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where Elbit Systems Ltd. (NASDAQ:ESLT) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
An unmanned aircraft system in the sky, its silhouette illuminated in the night light.
Elbit Systems Ltd. (NASDAQ:ESLT)
Elbit Systems Ltd. is a developer and supplier of land, airborne, and naval products and systems. The company serves homeland security, defense, and commercial aviation applications. The stock is up over 38% year to date and for good reason.
ESLT’s backlog is now worth $22.1 billion, which should be enough to support a double-digit topline growth this year. Two-thirds of these orders are from outside Israel, which means the company is well-diversified to handle any reduction in defense spending at home.
Two recent deals that are driving the company’s stock price include a $276 million deal with the Israel Defense Ministry for the supply of heavy air munitions and an approximately $600 million deal with Greece for 40 PULS multiple rocket launchers.
If the company is able to consistently deliver on its backlog of orders, there is no reason why it won’t continue to receive more orders. Geopolitical tensions continue to spur defense spending and the company is well-placed to benefit from that. With the stock on a tear so far this year, what’s not to like about ESLT?
Overall, ESLT ranks 2nd on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of ESLT as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ESLT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
