General Dynamics (NYSE: GD)
Defense spending doesn’t move in cycles — it moves in escalations. And right now, that trend is working in favor of companies like General Dynamics, one of the most consistently profitable names in the U.S. defense industry.
The U.S. defense budget is projected to reach nearly $900 billion in 2025, an all-time high, and General Dynamics is one of the biggest beneficiaries. The company’s order book tells the story clearly — its backlog grew 19% year over year last quarter, hitting record levels as global demand for submarines, military vehicles, and defense technologies continues to surge.
At the same time, operating earnings rose 11% year over year, with margins improving sequentially by 30 basis points. That’s impressive for any industrial company, but even more so for one tied to government contracts — where reliability and execution often matter more than headline growth.
From a technical standpoint, GD’s stock looks remarkably strong. Buyers have consistently stepped in to support the stock on every pullback, creating what traders might call a “pristine chart.” Even during recent market volatility, GD held key support levels and is now gaining momentum again. If current strength continues, the stock could climb toward the $375 area in the near term, while maintaining a solid safety net around $310, where buyers have repeatedly defended the trend.
General Dynamics isn’t a flashy trade — it’s a stable, disciplined play on one of the most durable spending priorities in the world. With record backlogs, steady growth, and a stock that’s technically firm, GD looks well-positioned to keep rewarding investors as defense spending stays elevated.
