Defense stocks are the rare corner of the market where geopolitical anxiety, fiscal generosity and multi-year revenue visibility all converge at once. With the Fiscal Year 2027 investment request by the Department of War totaling $756.8 billion, and President Trump declaring that “our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” the demand backdrop heading into July is as durable as it gets. Goldman Sachs frames it similarly, arguing that economic security will be a prominent theme in 2026, with NATO defense commitments and reindustrialization creating substantial opportunities for active managers.<\/p>\n
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24\/7 Wall St.<\/p>\n
Three names anchor that thesis. Each has a tool-verified data point supporting the “resilient” label, each has a clear bull case for July, and each carries a real risk worth pricing in.<\/p>\n
Lockheed Martin (NYSE: LMT)<\/p>\n
Lockheed Martin (NYSE:LMT<\/a>) trades at $545.70 as of July 2, up nearly 8% over the past month. The stock is up around 10% over the trailing year, but some recent weakness has created a more interesting entry. Forward P\/E sits at 17, with a dividend yield of 3% and a Wall Street average target of $624.11.<\/p>\n Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and RTX didn’t make the cut. Grab the names FREE today<\/a>.<\/p>\n The bull case is built on backlog and program lock-in. Lockheed ended 2025 with a record $194 billion backlog, representing more than 2.5 years of sales, and management reaffirmed FY2026 guidance of $77.5 to $80.0 billion in sales and diluted EPS of $29.35 to $30.25. Critically, the Department of War signed multi-year framework agreements to scale Patriot, THAAD, and PrSM production by three to four times current rates, and Lockheed just landed a $4.8 billion PAC-3 missile production contract. CEO Jim Taiclet said the year’s start “reinforces our confidence in Lockheed Martin’s continued operational and financial growth in the year ahead.”<\/p>\n Risk: Q1 2026 EPS of $6.44 missed the $6.70 estimate, dragged by a $125 million F-16 unfavorable profit adjustment. Fixed-price contract execution remains the perennial caveat.<\/p>\n LMT Price Target \u2014 24\/7 Wall St.<\/p>\n Northrop Grumman (NYSE: NOC)<\/p>\n Northrop Grumman (NYSE:NOC<\/a>) has been the worst-performing of the three this year, down 12% year-to-date to $504.60. That underperformance is the opportunity. Forward P\/E sits at 18, the dividend yields 2%, and the analyst target of $695.05 implies meaningful upside from current levels.<\/p>\n The resilience case is the cleanest of the group. Q1 2026 saw EPS of $6.14 beat the $6.06 estimate, revenue grew 4% to $9.88 billion, and net income climbed 82% year-over-year. The B-21 Raider swung from a $183 million operating loss to $305 million in operating income, a turnaround that should compound as production expands. Backlog stands at $95.61 billion with a 1.10 book-to-bill.<\/p>\n The most telling signal came from the boardroom. On May 20, 2026, ten Northrop directors purchased 349 shares each at $552.17, a coordinated buy that strongly suggests management views the stock’s pullback as a gift. CEO Kathy Warden described the quarter as reflecting “our ability to deliver in today’s unprecedented global demand environment.”<\/p>\n Risk: The B-21 LRIP program still has memory of a $477 million loss provision, and government shutdown risk is explicitly not in guidance.<\/p>\n NOC Price Scenario \u2014 24\/7 Wall St.<\/p>\n RTX Corp (NYSE: RTX)<\/p>\n RTX (NYSE:RTX<\/a>) is the only one of the three to raise full-year guidance after Q1, and its price action shows it. The stock trades at $188.54, up 32% over the past year and 4% in the past month. Forward P\/E of 27 is the highest of the trio, but the growth profile justifies it. The yield is 1%, and analysts carry a target of $215.73.<\/p>\n The bull case is execution. Q1 2026 adjusted EPS of $1.78 beat the $1.52 estimate by 17%, the eighth consecutive quarterly beat. RTX then raised its FY2026 outlook to adjusted sales of $92.5 to $93.5 billion and adjusted EPS of $6.70 to $6.90. Backlog finished Q1 at $271 billion, split $162 billion commercial and $109 billion defense. Recent wins include a $1.1 billion U.S. Navy AIM-9X contract and a $515 million SPY-6 radar contract. CEO Chris Calio cited “organic sales and adjusted operating profit growth across all three segments” as the reason for the raise.<\/p>\n Risk: The Pratt & Whitney powder metal matter requiring accelerated GTF fleet inspections remains a multi-year cash drag, and tariff exposure at Collins and Pratt is a watch item.<\/p>\n RTX Price Scenario \u2014 24\/7 Wall St.<\/p>\n What to Watch in July<\/p>\n Q2 earnings land in late July for all three. Lockheed and Northrop report on the same calendar week, with RTX close behind. The question is whether RTX raises again, whether Northrop’s B-21 momentum is sustainable, and whether Lockheed can put the F-16 charge behind it. With backlogs collectively approaching $560 billion and a defense budget trajectory that only points higher, the setup favors continued operational delivery over multiple expansion.<\/p>\n Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and RTX didn’t make the cut. Grab the names FREE today<\/a>.<\/p>\n![\"LMT](\"https:\/\/www.europesays.com\/defence\/wp-content\/uploads\/2026\/07\/https:\/\/media.zenfs.com\/en\/24_7_wall_st_aol_articles_169\/79d5da474ff68b86e7c2e69eaaaecd2c.jpeg\"\/)
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