RBC Capital Analyst Bullish on U.S. Defense Stocks Ahead of Q3 Earnings
U.S. defense stocks have surged an average of 30% year-to-date, fueled by the $158 billion defense spending bill and accelerated growth expectations. RBC Capital's Kenneth Herbert raised price targets for five major contractors, citing strong fundamentals and increased defense outlays.
Notable contract awards—including F-35, CH-53K, and RTX's DLA deal—signal heightened sector activity. RTX emerges as a top pick for H2, while General Dynamics faces lower Q3 expectations. The Golden Dome program may further buoy the industry.