Defense stocks surged in after-hours trading after President Donald Trump said in a social media post that he plans to pursue a sharply higher defense budget. The gains followed steep losses during the regular session, when Trump threatened to ban dividends and share buybacks at defense companies.
The Dow Jones U.S. Defense Index (DJUSDN) closed down 3.6% on Tuesday, while the S&P 500 Aerospace & Defense Index (SP500-201010) fell 2.1%. Both are expected to rebound after Trump’s latest proposal for a $1.5 trillion defense budget in 2027.
To gauge how that shift in sentiment is translating at the stock level, Quant ratings provide a snapshot of which defense names are screening strongest:
General Dynamics (GD): Quant Rating: Buy 4.42.
Lockheed Martin (LMT): Quant Rating: Buy 4.08.
RTX (RTX): Quant Rating: Hold 3.46.
Northrop Grumman (NOC): Quant Rating: Hold 3.38.