Chit Chat Stocks A US Defense Spending Supercycle? 7 Top Stocks For The Coming Spending Boom
Jan 14, 2026
Dive into the rising tide of U.S. defense spending! Discover the geopolitical factors driving this boom and explore projections for 2026. The hosts highlight seven key stocks, ranging from giants like RTX and CACI to innovative firms like BlackSky and Kratos. Learn about their unique positions in areas like cybertech, missile defense, and satellite imagery. As they wrap up, Brett and Ryan share insights and rankings, making it a must-listen for anyone keeping an eye on future investments in the defense sector.
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Global Defense Spending Surge
- Global defense spending could reach roughly $2 trillion in 2027 led by the U.S. and allies.
- Rising geopolitical tensions, especially with China, are a primary driver of this secular defense spending trend.
Target Tech Over Traditional Primes
- To find beneficiaries of defense spending, focus on cyber, surveillance, jamming, AI, and satellite technologies.
- Use screening tools and AI (e.g., Fiscal.ai and Gemini) to surface under-the-radar defense tech companies.
Leidos: Sticky GovTech With Scale
- Leidos is a large, sticky government IT and intelligence software contractor with high switching costs.
- It reports a growing backlog and an EV/EBIT under 15, suggesting valuation appeal versus peers.