Rheinmetall AG

Rheinmetall securities have failed to capitalize on the war in Iran and have shown almost no upward momentum for nine months now

Rheinmetall shares fall despite record order volume. Where has the hype gone?

NextVision Stabilized Systems, Ltd.

Aryt Industries Ltd.

Gilat Satellite Networks Ltd.

Mobilicom Limited

ParaZero Technologies Ltd.

The escalating conflict between Israel and the U.S. and Iran is fueling demand for modern warfare defense and software systems faster than supply chains can keep up. In Israel’s equity market, this has significantly boosted defense and tech companies. On <a href="https://www.tradingview.com/news/te_news:529637:0-israel-stocks-hit-record-high/#:~:text=Israel%E2%80%99s%20main%20stock%20index%2C%20the%20TA%2D125%2C%20surged%20nearly%206%25%20on%20Monday">Monday</a>, the Tel Aviv Stock Exchange’s benchmark TA-125 index rose as much as 6% intraday. On <a href="https://market.tase.co.il/en/market_data/index/137/major_data#:~:text=Previous%20Trading%20Days">Tuesday</a>, the index closed up 4.75%.

Which small Israeli defense tech stocks can vie with large peers for defense budgets?

Elbit Systems Ltd.

RTX Corporation

Lockheed Martin Corporation

The Boeing Company

Metallus Inc.

Kennametal Inc.

ATI Inc.

Taylor Devices, Inc.

V2X, Inc.

Elsight Limited

U.S. Secretary of State Marco Rubio said that Tehran produces about 100 ballistic missiles a month, while the Americans have only 8 THAAD interceptors in the same time. But the main problem now is Iranian drones that attack US allies across the Middle East. If the intensity of Shahed-136 launches continues at the current level, the stockpile of PAC-3 (Patriot Advanced Capability-3) missiles in the region could dwindle to a critical level within days, a Bloomberg source said.

Arms race: from MIC giants to small and medium-sized contractors

M-tron Industries, Inc.

Shares of M-tron Industries, a small-cap firm that manufactures frequency and spectrum control products for electronic circuits, could now rise about 12% on a two-month horizon, according to a trade idea released by Freedom Broker (and seen by <i>Oninvest</i>). The analysts cite a likely rise in military spending amid the escalating conflict in the Middle East.

Freedom Broker: M-tron has more than 12% upside on 2-month horizon amid ME conflict

BAE Systems plc

Volkswagen AG

Siemens Limited

Amid capital outflows from the US, the bank is building up positions in Europe, Japan and emerging markets

JPMorgan booked gains on defense stocks and named new favorites

ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi

Turkey's defense and aviation industry exports, including products and services, <a href="https://www.aa.com.tr/en/economy/turkiyes-defense-aviation-exports-exceed-10b-threshold-in-2025/3790365">exceeded</a> $10 billion in 2025, a record. Over the year it grew by 48%. The Turkish defense industry is booming, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-02-04/turkish-defense-firm-that-surged-236-in-a-year-eyes-new-markets">writes</a>. And Turkey's largest military electronics manufacturer, Aselsan Elektronik Sanayi, is competing for contracts in Europe and NATO countries. Its shares have risen 264% in value over the year, while the benchmark of the Turkish market - the BIST 100 index - is up about 45%. Askar Akhmedov, CFA, Chief Investment Officer at ATLAS Capital, wrote for Oninvest how the company secured such growth and how should investors view it?

Shares of Turkey's defense company Aselsan are up 264% year-to-date. What attracted investors? 

Kawasaki Heavy Industries, Ltd.

Advantest Corporation

SoftBank Group Corp.

IHI Corporation

The ruling Liberal Democratic Party won the biggest victory in Japan's postwar history on Feb. 8

Japanese stocks soar after PM Takaichi's party triumphs in elections

Espey Mfg. & Electronics Corp.

NioCorp Developments Ltd.

Western Copper and Gold Corporation

In the autumn, Freedom Broker analysts <a href="https://en.oninvest.com/article/freedom-picks-five-small-caps-two-strategies-as-market-enters-goldilocks-mode">noted</a>&nbsp;that a Goldilocks mode had begun to take effect in the U.S. economy – a combination of steady growth, normalized inflation, and a labor market supported by a neutral-to-soft policy by the Fed. Under such conditions, two strategies remain the most logical and advisable: investing in dividend stocks amid falling rates or in growth stocks while business activity remains robust, according to Vadim Merkulov, director of research at Freedom Finance Global.

Two strategies, four small caps from Freedom for February and beyond

American defense contractor Lockheed Martin <a href="https://investors.lockheedmartin.com/news-releases/news-release-details/lockheed-martin-reports-fourth-quarter-and-full-year-2025">presented a</a> strong financial forecast for 2026 and reported on a new contract with the U.S. Department of Defense. After publication of the report securities of the company added 4.23% (according to data on closing on January 29). For January, they have already risen by 28.7%, <a href="https://www.marketwatch.com/story/lockheed-martins-stock-is-having-its-best-month-in-half-a-century-thanks-president-trump-2b3c38ea?mod=newsviewer_click">draws the attention of </a>MarketWatch. All this may indicate that this month may become for Lockheed Martin securities the best since January 1980, when shares of the defense company added 30.4%, writes MarketWatch.

January could be Lockheed Martin's best month in 46 years. What does this have to do with Trump?

Saab AB (publ)

Shares of defense companies in Europe fell in price at trading on January 22 - after the statements of U.S. President Donald Trump about unwillingness to use force to seize Greenland. Analysts at JPMorgan Chase &amp; Co. saw the current decline in quotes as an opportunity to invest in the sector, <a href="https://www.bloomberg.com/news/articles/2026-01-22/jpmorgan-says-buy-dip-in-defense-stocks-after-trump-comments">Bloomberg</a> writes.

'New world order': JPMorgan advised to buy EU defense stocks on the downturn

Now the investment bank is betting on the Japanese market

Citi downgraded European stocks due to EU-US conflict over Greenland

Czechoslovak Group (CSG), a <a href="https://www.ft.com/content/32e73b4d-eff3-420b-9a82-7483dc2e14a5#:~:text=CSG%20has%20become-,a%20leading%20supplier%20to%20Ukraine%E2%80%99s%20armed%20forces,-and%20also%20acts">leading</a> supplier to Ukraine's armed forces, is preparing for potentially the largest IPO in the history of the defense sector in the "coming weeks." Chinese neuroimplant developer BrainCo, a competitor of Elon Musk's Neuralink, has decided to go public in Hong Kong. Crypto exchange Bitpanda, in which billionaire Peter Thiel has invested, may list in Frankfurt in the first quarter. The main events on the IPO market during the week are in our selection.

Defence Industry