3 Defense Stocks That Will Shine Under Trump's Golden Dome

President Donald Trump's May 21 announcement of the Golden Dome, an ambitious missile-defense shield set to cost at least $175 billion, opened eyes in Washington, D.C.

It should open some eyes on Wall Street, too.

The proposed defense system is expected to usher in a new era of military defense tools that operate in space, primarily to defend against long-range missile attacks.  Modeled after Israel's "Iron Dome" multi-layered air defense system, the Golden Dome will likely include space-based interceptors, advanced radar technology, and early warning and satellite trackers that team up to thwart missile attacks against the U.S., according to a recent RBC Securities research note.

It’s already making investors pivot to defense contractors, and especially to smaller, more technologically nimble ones.

"I promised the American people that I would build a cutting-edge missile-defense shield to protect our homeland from the threat of foreign missile attack, and that's what we're doing," Trump stated in a May 21 Oval Office announcement, citing President Ronald Reagan's Star Wars space defense project from the 1980's. "Once constructed, the Golden Dome will be capable of intercepting missiles, even if they launched from the other side of the world and space."

Defense industry companies are already on board, with Lockheed Martin LMT calling the Golden Dome a "Manhattan Project-scale mission, one that's both urgent and crucial to America's security" in a statement.

Foreign governments have also weighed in, with China's Foreign Ministry accusing the U.S. of threatening "global strategic balance and stability" and Canadian Prime Minister Mark Carney saying his country is conducting "high-level" discussions about Canada's participation in the project.

Meanwhile, stock market analysts are also taking a keen interest in the Golden Dome, with some signaling a pivot away from the major defense industry manufacturers and toward more technology-driven spaces and defense companies that would likely play a significant role in the Dome's development.

"There's a strong likelihood we'll see a shift away from traditional Primes like Boeing, Lockheed Martin and RTX toward a new wave of ‘New Space’ and ‘New Defense’ companies—most of which are still private. These include SpaceX, Stoke Space, Zeno Power, Anduril, Firefly, Xona, Lunar Outpost, Impulse Space, Gravitics, and many others that are building fast and innovating aggressively," said Viktor Shpakovsky, general partner at Beyond Earth Ventures.

"On the public markets, the truly ‘new space’ options are still limited. Rocket Lab, Planet Labs, Intuitive Machines, Maxar, and a few others stand out, but it's a short list," he added.

Other market experts call for a public-private enterprise to spearhead the Golden Dome project, which Trump has said needs to be up and running by the time he leaves office.

"With private sector players already building real-time satellite constellations and hypersonic defense systems becoming a necessity due to geopolitical tensions (e.g., China, Russia), the concept isn't just viable — it's strategically necessary," said Md Tanjib, an analyst at Forex Prop Firms, a trading analysis and review platform. "The key difference now is that commercial tech and public-private partnerships are far more advanced, making implementation more plausible than it would've been decades ago."

With the development and timeline for the Golden Dome up in the air, here are the space and defense companies that should benefit from the $175 billion pouring into the project. $25 billion in initial funding is included in the GOP's "Big, Beautiful Tax Bill," which still has to clear the Senate as of writing.

L3Harris Technologies

RBC Securities analyst Ken Herbert cited L3Harris Technologies LHX, which is already up 5.5% on the Golden Dome news. The company got a shout-out from Sen. Jim Banks (R-Ind.), who attended the White House rollout. Given its deep ties to the high-altitude ballistic tracking sector, this seems to be a direct sign that LHX will contribute to the project.

Analysts feel the same, with Goldman Sachs' Noah Poponak holding his buy rating on LHX.

"LHX continues to see opportunity for margin expansion and free cash flow growth," said Poponak. "It also remains focused on cost and productivity improvement programs."

Given its record of stacking missile defense tracking systems contracts, expect LHX to be front and center on the Golden Dome.

Lockheed-Martin

Like LHX, the Bethesda, Md.-based aerospace giant Lockheed-Martin was called out by name at the White House Golden Dome event, according to a Truist research note, which should be a green light for opportunistic investors.

"LMT already plays a central role in space-based defense (e.g., missile detection and interception systems)," Tanjib said. "It's likely to be a front-runner in any government contracts related to space defense infrastructure."

The company is reportedly already lined up for a chunk of the initial $25 billion in the new GOP tax bill, which should include big paydays for missile defense specialists like LMT.

RTX

Formerly “Raytheon,” RTX RTX specializes in radar technology, which should support the satellite shield that will serve as the Golden Dome's missile tracking centerpiece.

The Arlington, Va.-based aerospace and defense company outperformed in the first quarter of 2025, with sales and earnings running ahead of analyst expectations. Benchmark analyst Josh Sullivan upped his stance on RTX from a hold to a buy, with a $140 price target (it's trading at $132 per share as of May 23). In a new research note, he also called RTX a "peace through strength" stock. Cowen went a step further this week, moving its RTX target price from $142 to $155.

The company is also ideally situated for the Golden Dome largesse, as it already has deep relationships with government defense agencies, racking up billions of dollars in new contracts with the US Air Force, the Missile Defense Agency, and the US Navy. Add to the mix a healthy 2.05% dividend payout, and it's easy to see why analysts are so bullish on RTX shares.

Leaderboards That Reveals Tomorrow's Top Stocks — 60% Off

Updated daily, Benzinga Top Stock Leaderboards reveal our best buys right now. Cut through the noise and spot breakout opportunities – before the crowd catches on. Now 60% off for Memorial Day.

Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.

Photo: Shutterstock