Wall Street analysts expect defense stocks will continue to move higher as a result of the outbreak of the Israel-Hamas war making it less likely Congress will delay or curb the nation's defense budget.
Defense stocks have underperformed as a group this year amid concerns that partisan divisions in Washington point to lower military spending.
Notably, Bernstein analyst Douglas Harned doesn't expect the Israel-Hamas conflict will change the path of U.S. defense spending.
He cited prior conflicts, such as Russia's invasion of Ukraine last year, that didn't end up boosting the defense budget.
LMT 5D mountain Lockheed Martin Regardless, Wall Street broadly anticipates defense stocks could continue rising from current levels.
Persons:
Scott Deuschle, Deuschle, Jason Gursky, Bernstein, Douglas Harned doesn't, Harned, Martin, Northrop, Morgan Stanley, Lockheed Martin
Organizations:
Defense, U.S . Aerospace & Defense ETF, ITA, Wall Street, Defense Department, Pentagon, Deutsche, Citi, Deutsche Bank, Northrop Grumman, Lockheed, Israeli Defense Forces, L3Harris, Army
Locations:
Israel, Washington, U.S, Gaza, Ukraine, Congress, China, Russia, North Korea