# Pentagon is showering defense and drone companies with cash — ride the momentum on military stocks

_AI-generated trading idea · LONG · AVAV, EVTM, LMT, RTX_

> Canonical page: https://commonquant.ai/research/for-you/pentagon-is-showering-defense-and-drone-companies-with-cash--f68ef1b5-64da-4662-ba71-b28ff3a65611

U.S. defense orders just hit their second-highest level ever thanks to the Iran conflict, and separately, the Pentagon is reportedly looking at directly funding drone companies. Both stories point to a flood of government money heading toward military and defense-tech firms.

## Idea

The Iran war is translating into real, measurable orders — April's defense capital goods orders reached the second-highest level in history, which means revenue is already flowing, not just promised. On top of that, the Trump administration is reportedly exploring direct equity stakes in drone companies, which would be an unprecedented level of government backing for small defense-tech firms. When you combine surging orders with the possibility of Pentagon investment, defense stocks have a rare dual catalyst. Historically, defense names tend to keep running for weeks after order-surprise data like this, as institutional money rotates in.

## Key details

- Symbols: AVAV, EVTM, LMT, RTX
- Timeframes: D
- Tags: \#defense, \#geopolitics, \#momentum, \#government\_spending

## Community

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## News sources

- [US Defense Orders Surge to Near-Record Amid War With Iran](https://www.bloomberg.com/news/articles/2026-05-28/us-defense-orders-surge-to-near-record-amid-war-with-iran) — Bloomberg
- [Unusual Machines and other drone stocks surge on report Pentagon considering stakes in the industry](https://www.cnbc.com/2026/05/28/drone-stocks-unusual-machines-donald-trump-equity-stake.html) — CNBC

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