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The Zacks Analyst Blog Highlights LMT, RTX, NOC, ITA, PPA and SHLD
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For Immediate Release
Chicago, IL – April 13, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks and ETFs recently featured in the blog include: Lockheed Martin (LMT - Free Report) , RTX Corp. (RTX - Free Report) , Northrop Grumman (NOC - Free Report) , iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Invesco Aerospace & Defense ETF (PPA - Free Report) and Global X Defense Tech UCITS ETF (SHLD - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Defense ETFs in the Spotlight Amid Fading Truce Hopes in Middle East
The fragile hope for a long-term peace in the Middle East is rapidly thinning. Despite a recently mediated two-week ceasefire between the United States and Iran, hostilities have refused to quieten.
Reports of "Operation Eternal Darkness" in Lebanon and ongoing strikes on critical energy infrastructure, such as the Lavan Oil Refinery, have left the fate of a permanent truce hanging in the balance.
For investors willing to take this as an opportune time to revalue their portfolio, defense firms and the Exchange-Traded Funds (ETFs) that hold them demand a crucial spotlight, as these regional tensions refuse to de-escalate.
While the financial spotlight remains firmly on defense ETFs, a deeper analysis of the individual companies benefiting from the conflict, along with an assessment of their long-term viability, is essential for gaining a more complete picture of the investment landscape.
Prime Defense Contractors Gaining From Iran War
Major defense contractors are direct beneficiaries of the prolonged turmoil in the Middle East that has entered its fifth week now, testing global munitions inventories.
The Pentagon ordered quadrupling production of key components for the THAAD Anti-Missile System in March 2026, which should benefit its prime contractors — Lockheed Martin and BAE Systems (as per a Vanguard report).
Lockheed has signed a deal with the Pentagon to accelerate production of Precision Strike Missiles — tactical ballistic missiles used for the first time against Iran.
On the other hand, Honeywell Aerospace received an order from the Pentagon to boost the production of “critical components for America’s munitions stockpile,” including navigation systems.
RTX Corp., which produces the Patriot missile systems and Tomahawk missiles, is also seeing surging demand for its air defense technologies.Northrop Grumman, whose B-2 stealth bombers have been used for precision strikes in Iran, has also been benefiting from the conflict.
In a nutshell, these defense firms are not merely reacting to active combat but are entering a sustained growth cycle over the coming decades, as ongoing tensions in the Middle East set the stage for steady earnings expansion.
Long-Term Viability of Defense
The outlook for defense firms looks promising regardless of how the war in the Middle East unfolds. If the conflict drags on — with oil prices near $150 a barrel and the Strait of Hormuz disrupted — we may expect continued orders for missiles, jets and surveillance systems.
Even if peace emerges, broader market factors like rising geopolitical uncertainty across different parts of the globe ensure steady growth for the industry. NATO allies have pledged to raise defense spending to 5% of GDP (from the previous 2% target) by 2035, while the U.S. defense budget is also on track to cross the $1 trillion threshold. These tailwinds suggest solid growth expectations for prominent defense ETFs.
Defense ETFs in Spotlight
For investors looking to capture this industry-wide momentum, the following ETFs offer diversified exposure to the prime defense contractors:
iShares U.S. Aerospace & Defense ETF
This fund, with net assets worth $14.17 billion, offers exposure to 44 U.S. companies that manufacture commercial and military aircraft and other defense equipment. RTX holds the second position in this fund, with 16.43% weightage, LMT holds the seventh with 4.48% weightage, and NOC holds the ninth with 4.34% weightage.
ITA has gained 8% year to date. The fund charges 38 basis points (bps) as fees. It traded at a volume of 0.65 million shares in the last trading session.
Invesco Aerospace & Defense ETF
This fund, with a market value of $8.36 billion, offers exposure to 61 companies involved in the development, manufacturing, operations, and support of U.S. defense, homeland security and aerospace operations. RTX holds the third position in this fund, with 7.84% weightage, LMT holds the fourth with 7.37% weightage, and NOC holds the fifth with 5.03% weightage.
PPA has rallied 12.2% year to date. The fund charges 58 bps as fees. It traded at a volume of 0.19 million shares in the last trading session.
Global X Defense Tech UCITS ETF
This fund, with net assets worth $8.65 billion, offers exposure to 49 companies that build and manage cybersecurity systems, utilize artificial intelligence and big data, and build advanced military systems and hardware such as robotics, fuel systems and aircraft for defense applications. LMT holds the first position in this fund, with 9.05% weightage, RTX holds the second with 8.02% weightage, and NOC holds the ninth with 4.74% weightage.
SHLD has risen 14.6% year to date. The fund charges 50 bps as fees. It traded at a volume of 1.20 million shares in the last trading session.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights LMT, RTX, NOC, ITA, PPA and SHLD
For Immediate Release
Chicago, IL – April 13, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks and ETFs recently featured in the blog include: Lockheed Martin (LMT - Free Report) , RTX Corp. (RTX - Free Report) , Northrop Grumman (NOC - Free Report) , iShares U.S. Aerospace & Defense ETF (ITA - Free Report) , Invesco Aerospace & Defense ETF (PPA - Free Report) and Global X Defense Tech UCITS ETF (SHLD - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Defense ETFs in the Spotlight Amid Fading Truce Hopes in Middle East
The fragile hope for a long-term peace in the Middle East is rapidly thinning. Despite a recently mediated two-week ceasefire between the United States and Iran, hostilities have refused to quieten.
Reports of "Operation Eternal Darkness" in Lebanon and ongoing strikes on critical energy infrastructure, such as the Lavan Oil Refinery, have left the fate of a permanent truce hanging in the balance.
For investors willing to take this as an opportune time to revalue their portfolio, defense firms and the Exchange-Traded Funds (ETFs) that hold them demand a crucial spotlight, as these regional tensions refuse to de-escalate.
While the financial spotlight remains firmly on defense ETFs, a deeper analysis of the individual companies benefiting from the conflict, along with an assessment of their long-term viability, is essential for gaining a more complete picture of the investment landscape.
Prime Defense Contractors Gaining From Iran War
Major defense contractors are direct beneficiaries of the prolonged turmoil in the Middle East that has entered its fifth week now, testing global munitions inventories.
The Pentagon ordered quadrupling production of key components for the THAAD Anti-Missile System in March 2026, which should benefit its prime contractors — Lockheed Martin and BAE Systems (as per a Vanguard report).
Lockheed has signed a deal with the Pentagon to accelerate production of Precision Strike Missiles — tactical ballistic missiles used for the first time against Iran.
On the other hand, Honeywell Aerospace received an order from the Pentagon to boost the production of “critical components for America’s munitions stockpile,” including navigation systems.
RTX Corp., which produces the Patriot missile systems and Tomahawk missiles, is also seeing surging demand for its air defense technologies.Northrop Grumman, whose B-2 stealth bombers have been used for precision strikes in Iran, has also been benefiting from the conflict.
In a nutshell, these defense firms are not merely reacting to active combat but are entering a sustained growth cycle over the coming decades, as ongoing tensions in the Middle East set the stage for steady earnings expansion.
Long-Term Viability of Defense
The outlook for defense firms looks promising regardless of how the war in the Middle East unfolds. If the conflict drags on — with oil prices near $150 a barrel and the Strait of Hormuz disrupted — we may expect continued orders for missiles, jets and surveillance systems.
Even if peace emerges, broader market factors like rising geopolitical uncertainty across different parts of the globe ensure steady growth for the industry. NATO allies have pledged to raise defense spending to 5% of GDP (from the previous 2% target) by 2035, while the U.S. defense budget is also on track to cross the $1 trillion threshold. These tailwinds suggest solid growth expectations for prominent defense ETFs.
Defense ETFs in Spotlight
For investors looking to capture this industry-wide momentum, the following ETFs offer diversified exposure to the prime defense contractors:
iShares U.S. Aerospace & Defense ETF
This fund, with net assets worth $14.17 billion, offers exposure to 44 U.S. companies that manufacture commercial and military aircraft and other defense equipment. RTX holds the second position in this fund, with 16.43% weightage, LMT holds the seventh with 4.48% weightage, and NOC holds the ninth with 4.34% weightage.
ITA has gained 8% year to date. The fund charges 38 basis points (bps) as fees. It traded at a volume of 0.65 million shares in the last trading session.
Invesco Aerospace & Defense ETF
This fund, with a market value of $8.36 billion, offers exposure to 61 companies involved in the development, manufacturing, operations, and support of U.S. defense, homeland security and aerospace operations. RTX holds the third position in this fund, with 7.84% weightage, LMT holds the fourth with 7.37% weightage, and NOC holds the fifth with 5.03% weightage.
PPA has rallied 12.2% year to date. The fund charges 58 bps as fees. It traded at a volume of 0.19 million shares in the last trading session.
Global X Defense Tech UCITS ETF
This fund, with net assets worth $8.65 billion, offers exposure to 49 companies that build and manage cybersecurity systems, utilize artificial intelligence and big data, and build advanced military systems and hardware such as robotics, fuel systems and aircraft for defense applications. LMT holds the first position in this fund, with 9.05% weightage, RTX holds the second with 8.02% weightage, and NOC holds the ninth with 4.74% weightage.
SHLD has risen 14.6% year to date. The fund charges 50 bps as fees. It traded at a volume of 1.20 million shares in the last trading session.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.