10 Defense Contractor Stocks With Rising Government Orders

Defense contractors are entering a period of renewed strength as geopolitical tensions, modernization programs, and heightened national security priorities, which typically drives a surge in government spending.

With multi-year contracts being awarded at a record pace and international allies increasing their defense budgets, leading contractors are benefiting from both stable domestic demand and a wave of global opportunities.

These companies stand out for their expanding role in supplying cutting-edge technologies, from missile defense systems to next-generation aircraft.

Here are 10 top defense contractor stocks with rising government orders, strong analyst coverage, and growing international demand. These stocks could be worth a closer look for investors today

Unlock our Free Report: 5 undervalued compounders with upside based on Wall Street’s growth estimates that could deliver market-beating returns (Sign up for TIKR, it’s free) >>>

As global security challenges intensify, defense contractors are benefiting from surging government orders that provide multi-year revenue visibility.

Here are 3 stocks from this list that analysts expect could have the most upside today:

RTX Corporation (RTX)

RTX, formerly Raytheon Technologies, is one of the largest defense contractors in the world with a backlog exceeding $200 billion, of which roughly $93 billion comes directly from defense orders. Its position is particularly strong in air and missile defense, where its Patriot missile systems and advanced radar technologies remain essential for U.S. and allied security. With NATO allies accelerating missile defense spending amid heightened geopolitical risks, RTX has emerged as one of the biggest beneficiaries of these government-led procurement programs. The company also has strong visibility into long-cycle defense programs, ranging from precision munitions to propulsion systems, ensuring sustained order flow well into the next decade.

What makes RTX especially compelling is its ability to capitalize on both immediate and strategic defense priorities. The demand for Patriot systems in Europe and Asia is near record levels, creating a surge of short- to medium-term orders, while classified and next-generation systems add long-term earnings resilience. This dual exposure to urgent replenishment contracts and future modernization programs explains why RTX’s backlog keeps expanding and why it remains one of the clearest examples of a contractor thriving on rising government orders.

Value any stock in under 30 seconds with TIKR’s new Valuation Model (it’s free) >>>

Leonardo DRS (DRS)

Leonardo DRS has been steadily climbing the ranks of U.S. defense contractors, fueled by explosive backlog growth. The company’s order book surged 84% year-over-year to approximately $7.8 billion, underscoring its increasing relevance to the Pentagon. DRS provides critical systems for the U.S. Army and Navy, including power and propulsion technologies, advanced sensing equipment, and combat electronics. These are precisely the enabling technologies modern militaries require to maintain battlefield effectiveness, and the U.S. government has been accelerating orders in these areas as part of its modernization push.

The strength of DRS lies in its focused exposure to defense programs of record that have long funding visibility. Unlike larger contractors with commercial aerospace divisions, DRS’s revenues are overwhelmingly tied to defense and government demand, making its growth more directly linked to rising orders. Its ability to consistently secure new contracts in high-priority domains suggests that its backlog growth is not a one-off event but a structural trend. For investors, DRS represents a mid-cap defense player that is effectively a pure-play on the expansion of U.S. defense spending.

Find stocks that we like even better than Leonardo DRS today with TIKR (It’s free) >>>

L3Harris Technologies (LHX)

L3Harris has established itself as one of the most critical suppliers of defense communications, electronic warfare, and surveillance systems. Its portfolio is deeply aligned with government modernization priorities, ranging from secure communication networks to advanced battle management systems. The company has consistently won multi-billion-dollar contracts, including classified work, that give it a stable pipeline of government-driven revenue. This makes LHX one of the most reliable beneficiaries of increasing Pentagon budgets.

What distinguishes L3Harris is its specialization in the connective tissue of modern warfare, the systems that enable information dominance, situational awareness, and integrated command and control. These capabilities are becoming indispensable as militaries shift toward multi-domain operations, and the Pentagon has steadily increased orders in these areas. With a growing backlog and a strong reputation for execution, L3Harris is strategically positioned to capture a larger share of government defense spending. For investors, the company offers a blend of stability from entrenched programs and growth from its alignment with future-focused procurement priorities.

Value stocks like L3Harris quicker with TIKR >>>

Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential

TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.

Inside, you’ll get a breakdown of 5 high-quality businesses with:

• Strong revenue growth and durable competitive advantages
• Attractive valuations based on forward earnings and expected earnings growth
• Long-term upside potential backed by analyst forecasts and TIKR’s valuation models

These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.

Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.

Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!