Defense stocks in focus after U.S. strikes on Iran: Here's what to know

Market Trends & Geopolitical Landscape - Escalating global conflict translates to defense stock outperformance, indicating a positive outlook for the sector [2] - NATO allies are expected to commit 5% of GDP on defense spending, representing hundreds of billions of dollars in incremental procurement [4] - Germany and Japan are rearming, further stimulating defense spending globally [4][5] Key Players & Opportunities - Analysts see positive stock implications for Elbert, Boeing, Lockheed Martin, Northrop Grumman, and RTX, particularly in aircraft, missiles, bombs, and missile defense [2][3] - Boeing is expected to benefit from aerial refueling tanker replenishment for the US and Israel [3] - US defense products are expected to remain in demand in the near to medium term due to technological prowess and capabilities [5] Military Operations & Technological Superiority - Operation Midnight Hammer showcased American military capabilities with 125 aircraft and 75 missiles launched, including 14 GBU 57 massive ordinance penetrators [1] - The operation included the largest B2 operational strike in US history and the second longest B2 mission ever flown [1] - Air superiority still matters, supporting continued spending on exquisite systems costing billions to make and maintain [2]