Why Defense Stocks Are Rocketing Higher
Positive tariff news and some industry-specific speculation concerning future business helped light a rocket under defense stocks, sending the entire sector up.
AeroVironment (NASDAQ: AVAV) shares led the way up 14%, and shares of Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and Science Applications International (NASDAQ: SAIC) all climbed as high as 5% before fading some heading into market close.
Defense stocks have held up relatively well through this period of uncertainty, supported by industry-specific news like progress toward the 2026 Pentagon budget. And while the industry is relatively insulated from tariff talk, there is some potential for supply chain costs to go higher.
Source Fool.com
Aerovironment Stock
€196.85
1.510%
The stock is an absolute favorite of our community with 46 Buy predictions and no Sell predictions.
With a target price of 269 € there is a positive potential of 36.65% for Aerovironment compared to the current price of 196.85 €.
