U.S. Navy intercepts Iranian cruise missiles — 4 defense stocks to watch today

20 hours ago 2

Don Lair

Tue, May 5, 2026 astatine 5:01 AM CDT 4 min read

The U.S. Navy fired interceptors astatine inbound Iranian cruise missiles successful the Strait of Hormuz yesterday morning. Those interceptors were astir surely built by Raytheon. CENTCOM commandant Adm. Brad Cooper said Iran fired cruise missiles astatine U.S. Navy ships and drones astatine commercialized vessels, each of which were engaged with nary U.S. Navy oregon U.S.-flagged ships hit.

U.S. forces destroyed six Iranian tiny boats. Iran besides launched rocket and drone attacks connected the UAE. Treasury Secretary Scott Bessent told Fox News the U.S. has "absolute control" of the waterway.

Four Companies successful the Frame

RTX (NYSE:RTX) is the astir nonstop beneficiary. The Raytheon conception makes the Standard Missile household utilized by Arleigh Burke destroyers, the Tomahawk land-attack cruise missile, the Evolved SeaSparrow, and the Patriot strategy that defends Gulf bases. Q1 2026 Raytheon gross grew 10% to $6.945 billion, with adjusted operating nett up 25% connected Patriot and naval munitions demand.

Lockheed Martin (NYSE:LMT) builds the PAC-3 interceptor itself (RTX builds the Patriot launcher and radar), THAAD, and the Aegis combat strategy that runs the destroyers. Missiles and Fire Control grew 8% successful Q1 2026 to $3.649 billion, but $125 cardinal successful F-16 charges drove an EPS miss astatine $6.44 against a $6.70 estimate.

Northrop Grumman (NYSE:NOC) flies MQ-4C Triton and Global Hawk ISR implicit the Gulf and would beryllium the premier connected immoderate strategical escalation involving the B-21 oregon Sentinel ICBM. The vulnerability is existent but indirect.

General Dynamics (NYSE:GD) builds the Arleigh Burke destroyers themselves astatine Bath Iron Works. Marine Systems gross grew 21% to $4.343 cardinal successful Q1 2026. Platform play, agelong gross tail, slower to monetize a blistery conflict.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Lockheed Martin wasn't 1 of them. Get them present FREE.

How Each Business Is Positioned

Company

Role successful Operation Freedom

Exposure

RTX	Interceptors and cruise missiles being expended now	Direct, consumable
LMT	PAC-3 missile, Aegis software, THAAD	Direct, but mixed with bequest programme drag
NOC	ISR implicit the Gulf; strategical deterrence	Indirect
GD	Builds the destroyer hulls	Structural, slow-cycle

The structural constituent is simple. RTX sells the rounds. When a destroyer fires an SM-6 astatine an inbound cruise missile, that mag has to beryllium refilled. Prolonged hostilities construe reasonably rapidly into munitions replenishment contracts and allied buys, peculiarly from Gulf states and European partners present nether unit to assistance de-mine the strait.

What Management Is Saying

RTX CEO Chris Calio: "Given our archetypal 4th show and the spot we're seeing successful our defence business, we are expanding adjusted income and EPS successful our afloat twelvemonth outlook."

Read Entire Article