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7 Best Defense Stocks to Buy Now

By U.S. News & World Report

U.S. military spending under the fiscal 2026 National Defense Authorization Act hit $900.6 billion. Considering the ongoing conflicts in the Middle East, the war between Russia and Ukraine and heightened tensions between the U.S. and China, global military spending is unlikely to slow down any time soon.

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Investors typically consider defense stocks to be safe, reliable and recession-resistant investments. Many of these companies are locked into long-term government contracts that make their revenue and earnings outlooks stable and predictable. Here are seven of the best defense stocks to buy now, according to Morgan Stanley:

GE Aerospace (GE)

GE Aerospace supplies jet engines and services around the world and currently has an installed base of roughly 30,000 military and 50,000 commercial aircraft engines. The company’s Defense & Propulsion Technologies business designs, produces and services jet engines, associated electrical systems, and components for governments, commercial airframes and militaries. Analyst Kristine Liwag says GE’s stock price weakness so far in 2026 is a buying opportunity given the company’s potential for upside earnings revisions if a resolution to the Iran conflict brings down oil prices. Morgan Stanley has an “overweight” rating and $400 price target for GE stock, which closed at $297.45 on May 12.

RTX Corp. (RTX)

RTX is the defense behemoth created by the 2020 merger of Raytheon and United Technologies. The company’s Collins and Pratt & Whitney subsidiaries are more focused on the commercial aerospace industry, but its Raytheon subsidiary develops advanced sensors and provides training, software and cybersecurity solutions for the U.S. intelligence community and the Department of War. Liwag says RTX is benefiting from robust end-market demand and is her top aerospace stock pick. She says RTX’s outperforming defense business will fuel margin expansion and long-term growth. Morgan Stanley has an “overweight” rating and $220 price target for RTX stock, which closed at $178.89 on May 12.

Howmet Aerospace Inc. (HWM)

Howmet Aerospace manufactures lightweight metal products, specializing in jet engine components, titanium structural parts, aerospace fastening systems and forged wheels. The company also provides defense solutions to its military partners, such as precision machining, integrated program management and metals expertise. Liwag anticipates Howmet’s pricing power, strong competitive positioning, recent strategic acquisitions and reliable execution will help the company expand its margins and maintain industry-leading growth. In addition, she says Howmet has a strong financial position that allows for significant financial flexibility and additional capital deployment opportunities. Morgan Stanley has an “overweight” rating and $315 price target for HWM stock, which closed at $269.76 on May 12.

[Read: 7 Best Semiconductor ETFs to Buy in 2023]

General Dynamics Corp. (GD)

General Dynamics is a diversified aerospace and defense company that produces a wide range of products, including Gulfstream jets, Abrams tanks and nuclear submarines. The majority of the company’s revenue comes from the U.S. government, particularly its large contracts with the Department of War. Liwag says General Dynamics’ Aerospace book-to-bill ratio of about 1.2x has reassured investors concerned Middle East customers would pull back on Gulfstream spending. Liwag says the defense segment is experiencing elevated demand and General Dynamics is outperforming its peers in 2026. Morgan Stanley has an “overweight” rating and $435 price target for GD stock, which closed at $346.46 on May 12.

Northrop Grumman Corp. (NOC)

Northrop Grumman is one of the world’s largest weapons and military technology producers. The company’s Defense Systems segment provides battle management and missile systems products and services, while its Mission Systems segment focuses on airborne sensors and networks, as well as other military and intelligence mission solutions. Liwag says Northrop recently upped its capital expenditures outlook for 2026 due to larger-than-expected B-21 Raider investments. However, she says Northrop’s missile and missile defense technology businesses and its B-21 program position Northrop well for the current military spending environment. Morgan Stanley has an “overweight” rating and $745 price target for NOC stock, which closed at $558.30 on May 12.

TransDigm Group Inc. (TDG)

TransDigm designs and manufactures original aircraft parts sold to manufacturers. The company also produces aftermarket replacement parts sold to commercial and military aircraft operators. In recent years, TransDigm has announced several significant buyouts, including acquiring SEI Industries, Raptor Scientific, and the components and subsystems business of Communications & Power Industries. Liwag says investors are too pessimistic about aerospace commercial aftermarket weakness, and TransDigm is the most attractively valued stock among aerospace and defense peers. The company’s recent guidance hike suggests limited negative impact from elevated oil prices. Morgan Stanley has an “overweight” rating and $1,680 price target for TDG stock, which closed at $1,191.19 on May 12.

L3Harris Technologies Inc. (LHX)

L3Harris Technologies is an aerospace and defense company focused on technology-driven mission solutions. The company’s leading defense products include airborne ISR (intelligence, surveillance and reconnaissance) and electronic warfare systems, precision-guided munitions and propulsion products, communication systems, integrated vision solutions, and space and missile defense technologies. Liwag says strong international growth helped L3Harris generate an impressive book-to-bill ratio of 1.4x in the first quarter. She says the company’s Space & Missions Systems business was a particular standout in the quarter, and she sees L3Harris’ guidance as overly conservative. Morgan Stanley has an “overweight” rating and $390 price target for LHX stock, which closed at $309.47 on May 12.

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7 Best Defense Stocks to Buy Now originally appeared on usnews.com

Update 05/13/26: This story was published at an earlier date and has been updated with new information.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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