Amid geopolitical conflicts, especially the war between the U.S. and Iran, security has become a key focus for investors, as it affects energy prices, transportation, and inflation. At the same time, it is driving many governments to increase defense spending.
. Research division of Asia Plus Securities Company Limited The proposed U.S. defense budget for fiscal year 2027 stands at $1.15 trillion, an approximate 24% increase. If approved, this could support manufacturers of weapons, missiles, and air defense systems.
Global geopolitical conflicts, including those in the Middle East and the Russia-Ukraine war, remain key market concerns due to the broad impact of security uncertainties on energy prices, international transport, and the global economic and inflation outlook.
Meanwhile, the prolonged conflicts have compelled many countries to focus on enhancing military capabilities—procurement of weapons and equipment, defense system development, and increasing production capacity of key arms. This is reflected in the backlog orders held by weapons manufacturers.
Another factor to watch is the U.S. defense budget for 2027, currently proposed at $1.15 trillion, a 24% rise from the previous year. It covers procurement, research and development, operations, and maintenance. If approved, it could boost demand for products and services from defense contractors going forward.
However, increased budget allocation does not guarantee equal benefits for all companies. Outcomes depend on budget distribution, prioritized weapon types, delivery capabilities, and how orders translate into revenue and profits for each firm.
Research division of Asia Plus Securities Company Limited They state that the ongoing conflicts between the U.S. and Iran, and Russia and Ukraine, with periodic escalations, directly benefit stocks in the Defense sector.
This is evident in the growing backlog orders for Defense stocks such as Lockheed Martin and RTX Corporation, which have seen significant increases since the intensified U.S.-Iran conflict in Q2 this year. These companies also plan substantial missile production increases in 2027.
Additionally, a key investment catalyst is the U.S. defense budget for 2027, currently proposed at $1.15 trillion—a 24% increase from this year—under consideration for approval later this year. If passed at this level, it is expected to positively impact Defense sector stocks.
By Asia Plus Securities they express a strong preference for Lockheed Martin (LMT) within the group, due to its leadership in producing highly demanded missiles at this time. The research division also favors PLTR or Palantir Technologies.
Lockheed Martin (LMT), leader in weapons and missiles
Lockheed Martin is a major U.S. defense contractor with businesses including fighter jets like the F-35, missile systems, and security technologies. Its strength lies in producing weapons that may see increased demand as governments replenish arsenals and enhance defense systems.
RTX Corporation (RTX), opportunities from missiles and air defense systems
RTX operates in both defense and commercial aviation. Raytheon focuses on missile systems and air defense, along with other aviation-related engine and equipment businesses. As of Q3 2026, RTX holds a backlog of $340 billion, with $164 billion in defense contracts.
Palantir Technologies (PLTR), opportunities from software and AI
Palantir develops data analytics platforms supporting decision-making, used in intelligence, operational planning, and data coordination. Such technology is increasingly vital as national defense relies more on data and AI.
However, ongoing global conflicts and risks in the Strait of Hormuz keep security issues critical, giving these three stocks different drivers and risks. Investors should closely monitor budget approvals, earnings, orders, stock valuations, and thoroughly study details before investing.
Read stock and investment news with Thairath Money to help you achieve “Good Finance, Good Life” athttps://www.thairath.co.th/money/investment
Follow the Facebook page: Thairath Money at this linkhttps://www.facebook.com/ThairathMoney