The Zacks Analyst Blog Highlights Lockheed Martin, Boeing, RTX, SHLD, ITA and PPA

For Immediate ReleaseChicago, IL – October 22, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Lockheed Martin LMT, Boeing BA, RTX Corp. RTX, Global X Defense Tech ETF SHLD, iShares U.S. Aerospace & Defense ETF ITA and Invesco Aerospace & Defense ETF PPA.Here are highlights from Tuesday’s Analyst Blog:Fragile Gaza Ceasefire Puts Defense ETFs in the SpotlightThe fragile ceasefire in Gaza, which took effect on Oct. 10, 2025, faced its most serious test over the past weekend, as a resurgence of violence put the conflict back in the global spotlight. This has naturally intensified investor focus on defense stocks and related exchange-traded funds (ETFs).This is because geopolitical instability, like the conflict in Gaza, which poses a threat to regional peace, tends to enhance the business prospects of defense contractors as governments increase military spending. The recent escalation serves as a stark reminder of this dynamic, casting a direct spotlight on companies involved in producing the weapons and technologies that power modern warfare.More Than Just a Conflict: Broader Tailwinds for DefenseCompanies that supply military hardware to Israel, particularly U.S.-based firms, see their order books and stock prices potentially boosted by sustained conflict or a perceived need to replenish stockpiles. Major defense contractors, including Lockheed Martin, the supplier of F-35 fighter jets; Boeing, which provides F-15 fighter jets; and RTX Corp., a key participant in the Iron Dome system, have been cited as playing a significant role in supplying arms and components to Israel.This direct involvement makes them particularly sensitive to the conflict's duration and intensity. No doubt, the 1.8%, 2.2% and 1.8% hike observed in the share price of RTX, LMT and BA, respectively, in the last trading session was largely driven by the latest ceasefire violation by Israel.While the situation in Gaza is a significant driver, the defense ETFs are also being fueled by a confluence of powerful, longer-term factors like resilient demand, technological innovation and surging defense budgets.Defense spending is mostly considered non-cyclical. Governments maintain defense budgets regardless of the economic climate, providing defense contractors with predictable revenue streams. This offers a degree of stability that is attractive to investors, especially during times of broader market volatility.The defense sector is experiencing a revolution driven by artificial intelligence (AI), autonomous drones, and cyber warfare. These technologies are transforming modern warfare and driving defense department spending, creating significant growth opportunities for companies at the forefront of innovation.Governments worldwide are significantly increasing military spending. In the United States, the recently enacted "One Big Beautiful Bill Act" (OBBB) injected an additional $150 billion in new funding for national security and defense priorities on top of the already substantial annual defense budget.On the other hand, in June 2025, the North Atlantic Treaty Organization ("NATO") members agreed to a new target to spend 5% of their GDP on defense and security by 2035, marking a significant increase from the previous benchmark of 2%, which was set in 2014. With America being the largest weapon supplier in the world, this enhanced NATO spending should fuel U.S.-based defense manufacturers manifold.This powerful combination of persistent geopolitical tensions, expanding government budgets, and transformative innovation has positioned the defense sector for sustained growth, making defense ETFs a strategic consideration for portfolios. The Gaza narrative has only intensified this growth prospect.Defense ETFs in SpotlightFor investors looking to capitalize on this outlook, a diversified approach through ETFs provides exposure to a basket of leading companies. Here are some of the prominent defense ETFs available to investors, particularly those holding BA, RTX, and LMT in their top holdings:Global X Defense Tech ETFThis fund, with net assets worth $5.10 billion, offers exposure to global defense technology companies. Its top three holdings constitute RTX (7.64%) and Lockheed Martin (7.44%).SHLD has gained 79.8% year to date. The fund charges 50 bps in fees.iShares U.S. Aerospace & Defense ETFThis fund, with net assets worth $12.09 billion, provides exposure to U.S. companies that manufacture commercial and military aircraft, as well as other defense equipment. Its top five holdings include RTX (14.46%), BA (8.03%), and LMT (4.63%).ITA has gained 42.7% year to date. The fund charges 38 bps in fees.Invesco Aerospace & Defense ETFThis fund, with net asset value of $155.03 as of Oct. 20, 2025, provides exposure to companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. Its top five holdings include Boeing (7.84%), RTX (7.74%) and Lockheed Martin (7.29%).PPA has gained 35.7% year to date. It charges 58 bps in fees.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don't miss out on this valuable resource. It's free!Get it now >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Global X Defense Tech ETF (SHLD): ETF Research Reports iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Invesco Aerospace & Defense ETF (PPA): ETF Research Reports RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks