This article looks at the defense stocks that are gaining this week.
America’s defense sector has been shaky since Trump’s return to the White House, amid mixed statements on military expenditure in the early days of his second stint. Shares fell sharply last month after he hinted at cutting defense spending in the future. They wobbled again following his recent contentious spat with Zelensky at the Oval Office.
READ ALSO: 13 Best Defense Stocks to Buy According to Billionaires and 10 Best Large Cap Defense Stocks to Buy Now.
According to a report in the Financial Times on February 24, shares of the six largest American defense companies have fallen 4% since the start of Trump’s second term. Whereas, Europe’s top defense groups have returned gains of around 40% during the same period. Several Korean companies have also benefited from Europe’s defense splurge.
European defense stocks have rallied this year as governments faced pressures to increase military spending. The momentum has further picked up after the conservative victory in Germany, and the European Summit in London, where leaders from the EU and NATO met to express their support for Ukraine.
While US defense stocks have missed the global rally, Citi analyst, Jason Gursky, is urging investors that this is the right time to buy them. Here is what he wrote in a note to clients on Wednesday:
“We recognize the world order is evolving under the current President, perhaps to a multi-polar one in which three countries control spheres of influence over the Americas, Europe and Asia. However, we don’t view that world to be any less dangerous or one that decreases the need to acquire the tools of deterrence.”
Trump’s recent statement on resurrecting American military and commercial shipbuilding has been well-received. Shares of a major naval defense contractor have surged over the past week, following the announcement. The US president has vowed to fix the industry, which he sees as vital to national security, given the strategic competition with China.
Let’s now head over to the list of defense stocks that are gaining this week. Please note that the stocks listed are based on one week’s performance. Our analysis does not reflect the prospects of the company. Their share price could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.
Pixabay/Public Domain
Methodology
For this article, we went through screeners to see how stocks in the aerospace and defense industry performed over the past week (March 3-7). From there, we picked the top 10 stocks with the highest percentage gains in share price during this period. All data is as of the close of business on Friday, March 7, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Sidus Space, Inc. (NASDAQ:SIDU)
Weekly Gains: 4.76%
Sidus Space, Inc. (NASDAQ:SIDU) is engaged in the design, manufacture, launch, and data collection of commercial satellites. The stock has struggled this year, with a year-to-date decline of nearly 60%, mainly driven by weak financial performance.
However, shares have risen by 4.76% over the past week, after Sidus Space, Inc. (NASDAQ:SIDU) announced the one-year orbital anniversary of LizzieSat (LS-1), a hybrid 3D printed satellite that has demonstrated exceptional capabilities to optimize performance, enhance mission adaptability, and reduce production timelines.
Sidus Space, Inc. (NASDAQ:SIDU) also stated that it was preparing for the launch of LizzieSat (LS-3) in March, which will mark the third satellite launch within a year.
9. Lockheed Martin Corporation (NYSE:LMT)
Weekly Gains: 5.17%
Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. The company specializes in the research, design, and development of advanced technology systems, products, and services.
The stock has gained 5.17% over the past week, following a March 3 report in Reuters about Lockheed Martin Corporation (NYSE:LMT) planning to unveil a new, low-cost cruise missile priced at $150,000 with a range of 800 kilometers, as the company works to counter Chinese ambitions in the Pacific by offering affordable weaponry.
Lockheed Martin Corporation (NYSE:LMT) was up by 2.63% on Friday after Matthew Akers from Wells Fargo raised the stock’s price target to $476 per share, up from $468 previously. However, the analyst maintained his Hold rating for LMT. According to analysts, the revision stemmed from a growing interest in American defense stocks from abroad.