US Defense: President’s Budget Comment Buoys Share Prices
Shares of US defense contractors rose after President Trump announced plans for a $1.5 trillion fiscal 2027 defense budget. While this could broadly benefit the sector, the increased spending is expected to come with new restrictions, such as prohibiting dividends or buybacks for contractors falling behind on contracts. Morningstar maintains its fair value estimates for these companies, noting most remain fairly valued.
https://www.morningstar.com/stocks/us-defense-presidents-budget-comment-buoys-share-prices