Following the U.S. airstrikes on Iran on June 21, which involved at least six B-2 Spirit stealth bombers targeting nuclear infrastructure, traders quickly turned their focus to defense stocks as markets reopened.
War-related equities have already shown notable momentum and underlying strength in recent weeks. That trend accelerated during Monday’s pre-market session, with several defense names climbing in response to heightened geopolitical tensions.
In this context, Finbold prompted ChatGPT to identify three defense stocks to watch as global conflict risk intensifies. Interestingly, Northrop Grumman (NYSE: NOC), despite building the very aircraft used in the strikes, was not one of the three selected.
Still, Northrop remains central to the narrative. The B-2 Spirit, estimated to cost around $2.1 billion per unit, was reportedly used to deliver 30,000-pound bunker-buster bombs on Iranian targets. Shares of NOC rose between 1.3%-1.5% in early trading, slightly ahead of other contractors.
However, analysts have warned that short-term price spikes do not always translate into sustained budget increases. Northrop is also contending with roughly $2 billion in recent B-21 Raider cost overruns, which have pressured earnings but could position the company for long-term program wins.
Lockheed Martin (NYSE: LMT)
Nonetheless, ChatGPT did pick Lockheed Martin which gained approximately 0.5% pre-market. The company supplies both the aircraft and missile systems widely used in U.S. military operations. Its exposure to the F-35 program and long-standing defense contracts make it a staple in portfolios seeking geopolitical hedges.
RTX Corporation (NYSE: RTX)
As the producer of Tomahawk cruise missiles, RTX was another pick which also moved about 0.6% higher on the day. Its extensive missile and radar systems portfolio has made it a critical player in U.S. and NATO operations.
General Dynamics (NYSE: GD)
Finally, General Dynamics, which provides munitions, naval systems, and armored vehicles, posted a similar gain. The company is seen as well positioned to meet rising demand if military operations intensify.
While all three stocks saw modest gains ranging from 0.6% to 1.3% in the latest session, investors should remain aware of the risks. Geopolitical events can drive rapid shifts in sentiment, and defense spending remains subject to political constraints.
However, in the near term, these stocks offer exposure to a sector showing clear signs of investor interest.
