A $1.5 Trillion Defense Budget Is on the Table. Here's the 1 Defense Stock I'd Buy First.

Key Points The company spun off from Honeywell International at the end of June. Its shares are down more than 21% since the spinoff. It is trading at a lower valuation than its peers. 10 stocks we like better than Honeywell Aerospace › Geopolitical pressures, from the Iran war to U.S.-China conflicts and the Russia-Ukraine war, provide plenty of reasons for defense stocks to have tailwinds in 2026. That's because these pressures are likely to increase global defense spending. At home, the fiscal 2027 National Defense Authorization Act, passed by the House on July 22 but still awaiting a vote in the Senate, proposes a record $1.15 trillion in U.S. military spending.