In this article, we look at the defense stocks that are gaining this week.
On Friday, President Trump unveiled a new next-generation fighter jet, the F-47. According to media reports, the name signifies Trump’s return to the White House as the 47th President of the United States.
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The F-47, which is planned to replace the F-22, will be for air superiority and have stealth and penetration capabilities that exceed those of the current fleet. Defense experts believe that manned fighters will be crucial in any potential future conflict with China and other foes. USAF General David Allvin has described the F-47 as the ‘crown jewel’ of future air dominance systems.
The initial contract to proceed with the production is expected to cost approximately $20 billion. This is a welcome development for America’s defense sector, which has wobbled this year amid mixed statements from the Trump administration on the future of military expenditure in the country.
The move adds to the positive momentum after President Trump’s recent announcement to resurrect America’s military and commercial shipbuilding industry, which he sees as vital to national security, given the strategic competition with China.
Elsewhere, particularly in Europe, defense stocks have soared this year, with European capitals unlocking billions to supercharge their militaries. The United States has repeatedly called for Europe to spend more on defense while stressing that Washington could no longer foot the bill.
EU leaders met in Brussels earlier in March to discuss the ‘ReArm Europe Plan’, which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending. Last week, the German parliament voted in favor of a historic fiscal package, which includes reforms to long-standing debt policies to allow for higher defense spending.
Several Asian contractors are also benefiting from Europe’s defense splurge. A leading aerospace and defense company in South Korea has gained over 92% year-to-date, driven by demand for weapons from NATO countries like Poland and Romania. On March 20, The Economic Times reported a 20% increase in India’s defense and shipbuilding stocks in response to Germany’s big military plans.
With that said, 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 companies’ prospects, and their share price could go high or low in the future, depending on external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.
Jordan Tan / Shutterstock.com
Methodology
For this article, we went through screeners to see how stocks in the aerospace and defense industry performed over the past week (March 17-24). 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 Monday, March 24, 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. Rocket Lab USA, Inc. (NASDAQ:RKLB)
Weekly Gains: 5.81%
Rocket Lab USA, Inc. (NASDAQ:RKLB) is an end-to-end space company delivering reliable launch services, spacecraft components, spacecraft design services, and related software. It is among the defense stocks that are gaining this week.
The stock has gained 5.81% over the past week. Shares soared this Monday after Cantor Fitzgerald reiterated its Overweight rating for Rocket Lab USA, Inc. (NASDAQ:RKLB), citing the company’s recent affirmations regarding Neutron’s progress.
Investor sentiment has also been bolstered after Rocket Lab USA, Inc. (NASDAQ:RKLB) on March 11 announced its intention to acquire Mynaric, a German firm that specializes in laser optical communications terminals. The transaction is expected to strengthen the company’s position in national security contracts.
9. Spirit AeroSystems Holdings, Inc. (NYSE:SPR)
Weekly Gains: 5.83%
Spirit AeroSystems Holdings, Inc. (NYSE:SPR) is an OEM manufacturer of aerostructures serving the commercial airplanes, military platforms, and business/regional jets markets.
On January 31, the company announced that shareholders had approved the proposed acquisition of Spirit AeroSystems Holdings, Inc. (NYSE:SPR) by Boeing. The transaction is expected to close in mid-2025. The company is making significant strides to improve operations and reported a meaningful increase in deliveries during the fourth quarter of the fiscal year 2024.
Spirit AeroSystems Holdings, Inc. (NYSE:SPR)’s share price has increased by 5.83% over the past week, partly as a result of the positive developments around Boeing. It is among the defense stocks that are gaining this week.
8. Astronics Corporation (NASDAQ:ATRO)
Weekly Gains: 5.98%
Astronics Corporation (NASDAQ:ATRO) provides advanced technologies to global aerospace, defense, and electronics clients. Some of its offerings include lighting and safety systems, aircraft electronics integration, automated test systems, and distribution and motion systems, among other products and services.
The company’s shares have surged 32% over the past month after announcing robust financial results for the fourth quarter of FY24. Astronics Corporation (NASDAQ:ATRO)’s sales grew 6.8% year-over-year, while adjusted operating income expanded by 550 basis points. Adjusted EBITDA was posted at $31.5 million, representing 15.1% of sales. The positive margins are helping the company improve its cash from operations.
Astronics Corporation (NASDAQ:ATRO) was up by over 4% this Monday to cross the $26 per share mark and reach a 52-week high. It is among the defense stocks that are gaining this week, with returns of 5.98% during the period.
7. Elbit Systems Ltd. (NASDAQ:ESLT)
Weekly Gains: 7.11%
Elbit Systems Ltd. (NASDAQ:ESLT) is an Israel-based defense technology company whose share price has more than doubled over the past six months, with several high-value contracts over this period strengthening investor sentiment toward the stock.
On March 18, the company declared consolidated financial results for the fourth quarter of FY24. Elbit Systems Ltd. (NASDAQ:ESLT)’s revenue was reported at $1.93 billion, improving from $1.63 billion during the prior year’s period. Non-GAAP diluted EPS was logged at $2.66, beating estimates of $1.95 per share and up 71% year-over-year.
Elbit Systems Ltd. (NASDAQ:ESLT)’s shares have surged by over 7% in the past week. It is among the defense stocks that are gaining this week.
6. Optex Systems Holdings, Inc (NASDAQ:OPXS)
Weekly Gains: 7.20%
Optex Systems Holdings, Inc (NASDAQ:OPXS) provides optical sighting systems and assemblies for the US Department of Defense, foreign military applications, and commercial markets. It is among the defense stocks that are gaining this week.
Shares have risen by 7.20% over the past week after Optex Systems Holdings, Inc (NASDAQ:OPXS) announced a $4.2 million contract award from BAE Systems for laser-protected periscopes and optical sighting systems to enhance the mission capability of the Bradley Fighting Vehicle fielded by the US military.
Optex Systems Holdings, Inc (NASDAQ:OPXS) is a trusted partner of the US military, and this recent award reaffirms the company’s commitment to advancing military optical technologies for improved protection and situational awareness on the battlefield.
5. Archer Aviation Inc. (NYSE:ACHR)
Weekly Gains: 7.46%
Archer Aviation Inc. (NYSE:ACHR) is an aerospace company that is engaged in developing eVTOL aircraft. It is also working on a hybrid aircraft platform for the defense market.
The stock has continued its rally following the announcement of a strategic partnership earlier this month between Archer Aviation Inc. (NYSE:ACHR) and Palantir Technologies to build the next-gen aviation software that utilizes artificial intelligence to improve air traffic control, route planning, and movement control.
Shares jumped 7.46% over the past week to close at $8.93 per share on Monday, March 24. Analysts believe the deal is likely to bolster Archer Aviation Inc. (NYSE:ACHR)’s footprint in the industry and attract interest from young investors looking for aviation stocks that deploy AI.
4. Karman Holdings Inc. (NYSE:KRMN)
Weekly Gains: 10.26%
Karman Holdings Inc. (NYSE:KRMN) specializes in the manufacturing and sale of mission-critical systems for missile, space, and defense programs. The company debuted on the NYSE in mid-February and has since gained 25%.
The stock has surged over the past two weeks after several analysts initiated coverage of Karman Holdings Inc. (NYSE:KRMN) with Buy ratings and impressive price targets that represented a high upside potential. Shares were up 10.26% between March 17 and 24, earning KRMN a place in our list of the defense stocks that are gaining this week.
Last month, President Trump signed an executive order to mandate the process of building an ‘American Iron Dome’, which presents an opportunity for Karman Holdings Inc. (NYSE:KRMN) to benefit, given its expertise in hypersonic missile defense.
3. Draganfly Inc. (NASDAQ:DPRO)
Weekly Gains: 11.34%
Draganfly Inc. (NASDAQ:DPRO) develops cutting-edge unmanned and remote data collection and analysis platforms and systems. It is among the defense stocks that are gaining this week.
On March 20, the company announced the joining of Chris Miller, former Acting U.S. Secretary of Defense under President Donald Trump, to Draganfly Inc. (NASDAQ:DPRO)’s Board of Directors. As a seasoned national security expert, Miller is expected to guide the company’s strategic initiatives in the government and defense sectors.
Investors are also buoyed by Draganfly Inc. (NASDAQ:DPRO)’s new facility in Tampa, Florida, to strengthen national security and defense partnerships. It is strategically located close to major government and military clients and includes a live fire testing facility, reaffirming the company’s commitment to delivering advanced drone solutions to US customers.
2. The Boeing Company (NYSE:BA)
Weekly Gains: 11.77%
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in over 150 countries. It is among the defense stocks that are gaining this week, with returns of nearly 12% since March 17.
After a difficult 2024 and challenges continuing well into the first quarter of 2025, there is finally some respite for The Boeing Company (NYSE:BA). On Friday, President Trump awarded the company a $20 billion contract for the NGAD fighter jet, F-47, to replace the F-22 Raptor. Shares surged 3% following the announcement and gained another 1.57% on Monday.
Investor sentiment also picked up after Citi, on March 13, reiterated its Buy rating for The Boeing Company (NYSE:BA) with a share price target of $210. The analyst believes the market is currently undervaluing the company’s long-term growth potential.
1. Momentus Inc. (NASDAQ:MNTS)
Weekly Gains: 16.23%
Momentus Inc. (NASDAQ:MNTS) is a commercial space company that offers satellite buses and in-space infrastructure services, including hosted payloads, in-space transportation, and other in-orbit services. It is also working on several space-related defense contracts.
On March 11, the company announced a strategic partnership with Solstar Space for on-demand communication for space systems. This has helped its share price recover to some extent after a tumultuous first quarter of the year, in which Momentus Inc. (NASDAQ:MNTS) has seen a 72% year-to-date decline, amid several delisting warnings and deficiency notices over the last few months.
Overall, Momentus Inc. (NASDAQ:MNTS) ranks first among the defense stocks that are gaining this week. While we acknowledge the potential of defense companies, our conviction lies in the belief that 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 more promising than MNTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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