Aerospace and defense stocks are a hot topic today, as insiders report that President Donald Trump plans to sign an executive order that will increase weapon exports. According to a report from Reuters, the President might use this order to increase the minimum requirement for a congressional review of weapon sales to other countries.
Insiders claim that this executive order would be similar to a bill to amend the U.S. Arms Export Control Act that was backed by Michael Waltz in 2024. That bill didn’t become law, but Waltz could push for the executive order to adopt similar changes as he’s President Trump’s national security adviser.
The details of the executive order are unknown. However, it could be similar to that previous legislation. That bill proposed increasing the minimum limit for a congressional review from $14 million to $23 million for arms sales and $50 million to $83 million for equipment sales.
What This Could Mean for Defense Stocks
If President Trump signs an executive order altering the U.S. Arms Export Control Act, it could allow for more sales without triggering a congressional review. This would be a benefit for defense contractors, as it would eliminate some of the red tape they face when selling weapons to foreign countries.
Increased weapon sales mean more revenue. President Trump’s bill could allow for that, improving financial performance for companies in the defense sector. The federal government would also benefit from additional sales it could tax.
Which Defense Stocks Are Worth Investing In?
Turning to the TipRanks stock comparison tool, traders will see which defense stocks provide the best investment opportunities. Looking at the big three in this sector, RTX (RTX), Lockheed Martin (LMT), and Boeing (BA) all have consensus Moderate Buy ratings. BA has the highest upside potential at 17.49%, followed by LMT at 16.01%, and RTX at 9.15%.
