Gina Rinehart, an Australian billionaire mining magnate, has increased her stake in U.S. defense companies by almost $100 million. While shares in the four selected companies rose on Monday following the revelation, three of them closed lower on Tuesday.
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Australian Billionaire Makes Nearly $100M Bet
A document submitted to the U.S. securities regulator shows that Hancock Prospecting Ltd., which Rinehart chairs, invested a cumulative total of $97 million in RTX (RTX), Northrop Grumman Corp. (NOC), L3Harris Technologies (LHX), and Lockheed Martin Corp. (LMT) during the first three months of this year.
The mining and agricultural company also boosted its stakes in Canadian copper and zinc mining firm Hudbay Minerals (HBM) and American gold miner Newmont Corp. (NEM).
Iran War Casts New Spotlight on U.S. Defense Stocks
Rinehart’s investment comes as the U.S.-Iran war — which is heading for its third month — has put a renewed focus on American defense stocks, with expectations of more spending on defense. Moreover, President Donald Trump’s administration remains determined to ramp up America’s military spending to $1.5 trillion in 2027, up roughly 44% from 2026.
Since the war began on February 28, defense stocks have seen occasional price jumps based on developments in the Middle East conflict. However, their performance has been mixed at best, suggesting that investors remain selective and likely unsure of what lies ahead for defense companies.
For instance, while Lockheed Martin and L3Harris Technologies are up roughly 9% and 5% year-to-date, RTX and Northrop Grumman are down by about 5% and 2%, respectively.
Moreover, challenges remain for defense companies. For instance, American defense firms could be heading for supply chain disruption and higher sourcing costs as Washington looks to restrict the use of China-sourced rare earth magnets in deals with the U.S. Department of Defense.
Which Defense Stock Is the Best Buy?
TipRanks’ Stock Comparison tool shows that Northrop Grumman (NOC) offers the biggest upside of about 29%. This comes with a Moderate Buy rating and is based on an average price target of $716.23.
