10 Largest Defense Stocks in 2025

Core Insights - The article discusses the 10 largest defense stocks in 2025, highlighting increased demand driven by global military conflicts and rising defense budgets, particularly in Europe [1][2] - The NYSE Arca Defense Index has increased by 43.81% year-to-date as of October 23, significantly outperforming the S&P 500 Index, which has returned 14.82% [3] - Smaller-cap defense contractors are also performing well due to demand for next-generation military technology, such as AI-powered drones [4] Defense Industry Trends - European countries are increasing their defense budgets, influenced by U.S. policy changes under President Trump, which has led to a greater emphasis on self-funding defense initiatives [2] - The U.S. has made significant arms deals, such as a $142 billion package to Saudi Arabia, contributing to the strong performance of American defense stocks [3] Company Performance - Curtiss-Wright Corporation (NYSE:CW) has a market cap of $21 billion and is noted for its innovative offerings in growing markets, with a price target raised to $502 from $457 [9][11] - Rocket Lab Corporation (NASDAQ:RKLB) has a market cap of $30.8 billion, with a price target increased to $75 from $50, reflecting strong growth in its Space Systems segment and a bullish outlook from analysts [14][15][16] Investment Insights - The article emphasizes the importance of hedge fund holdings in defense stocks, suggesting that mimicking top hedge fund picks can lead to market outperformance [8] - The methodology for identifying the largest defense stocks includes market capitalization and hedge fund interest, providing insights into investor sentiment [7]