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We recently published an article titled Why These Defense Stocks Are Gaining This Week. In this article, we are going to take a look at where HEICO Corporation (NYSE:HEI) stands against the other defense stocks.
The Ukraine crisis has taken an unexpected turn following a heated exchange at the Oval Office between Ukrainian President Volodymyr Zelensky and US Vice President J.D. Vance on Friday, which ended with President Trump berating the visiting leader. Defense stocks wobbled after the contentious meeting as investors anticipated the US-Ukraine minerals deal to be signed.
READ ALSO: 10 Best Large Cap Defense Stocks to Buy Now and Why These 15 Defense Stocks Are Skyrocketing So Far In 2025.
The defense sector in the US has so far struggled under Trump’s second term as president, amid mixed statements on military expenditure throughout his campaign and the early days of the new stint. Shares fell sharply on February 13 after the US president suggested the country could rapidly cut military spending in the future.
The creation of DOGE is also reshaping investors’ views of the sector. According to a Financial Times report on February 24, shares of the six largest American defense companies have fallen 4% since Trump’s return to the White House. In contrast, Europe’s top defense stocks have risen by nearly 40% over the same period.
European defense stocks have rallied over the past two weeks as governments faced pressures to increase military expenditure. Several stocks recorded double-digit growth on Monday, March 3, a day after the European Summit in London where leaders from the EU and NATO met to express their support for Ukraine, following the recent Zelenskyy-Trump spat.
The momentum has further picked up after a conservative victory in Germany, signaling the shift to the right in Berlin. A Reuters report on Sunday stated that parties in talks to form the country’s next government are already considering setting up a defense fund.
Peter Schaffrik, Global Macro Strategist, at RBC Capital Markets stated the following on the ongoing situation:
"It is an inflection point and Europe realises it needs to do the heavy lifting. The German elections have opened the door for more spending. The whole Zelenskiy-Trump meltdown has fast forwarded everything."
Let’s now head over to the list of defense stocks that are gaining this week. Please note that the stocks listed are based on one week’s performance. Our analysis does not reflect the prospects of the company. Their share price could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.