The fiscal 2026 National Defense Authorization Act calls for $924.7 billion in U.S. military spending, up slightly from 2025 levels. However, the ongoing war in Ukraine, tensions between China and Taiwan, and conflicts involving Israel, the U.S., Iran and Hamas in the Middle East may force governments to increase defense industry investment in coming years, which could serve as a tailwind for defense sector earnings.
Defense stocks are attractive investments because they often have predictable, long-term government contracts. Here are seven of the best defense stocks to buy now, according to Morgan Stanley analysts.
This post originally appeared at U.S. News & World Report.