Core Insights - Two foreign defense stocks, Tat Technologies and Leonardo DRS, surged approximately 5% this week due to increased global demand for military systems amid escalating tensions in the Middle East, particularly following the U.S. war with Iran [1] - Both companies have seen significant gains in 2026, with Tat up about 30% and Leonardo up nearly 35% since the beginning of the year [1] Company Summaries Tat Technologies - Tat Technologies, based in Israel, specializes in aerospace and provides maintenance and repair services for military aircraft, along with manufacturing parts for military planes [1] - The stock price is currently around $59.50, slightly above the mean analyst price target of $58.67, with analysts expecting the company to expand production capabilities and complete an M&A deal this year [1] - Analysts from Lake Street Capital rated the stock a buy with a price target of $59, indicating confidence in the company's growth potential [1] Leonardo DRS - Leonardo DRS, based in Italy, is a leading European defense firm and a key supplier to NATO, known for products like military helicopters and naval weaponry systems [1] - The company reported an 8% revenue growth to $1.06 billion and an adjusted diluted earnings gain of 11% to 42 cents per share during its most recent earnings call [1] - For 2026, Leonardo DRS forecasts revenue growth between 6% and 8%, with a backlog increase of 3% to $8.7 billion [1] - The company is significantly investing in R&D, with a 40% increase in spending and a focus on high-growth markets, including airborne and unmanned systems [1]