With tensions rising between the United States and NATO over new tariffs and Greenland’s strategic resources, defense, mining and industrial stocks are poised for a major rally.
In this context, five stocks stand out: Lockheed Martin (NYSE:), Rtx (NYSE:), Critical Metals (NASDAQ:), Teck Resources (NYSE:) and Caterpillar (NYSE:). Each of these companies stands to benefit from increasing U.S. military budgets, competition for Arctic resources, and a shift in the supply chain away from Europe and China.
1. Lockheed Martin – The Arctic Defense Leader
Lockheed Martin is perhaps the greatest beneficiary of escalating tensions between the United States and NATO, particularly regarding the strategic importance of Greenland and resulting Arctic defense needs, which demand sophisticated military systems and surveillance capabilities.
The company’s F-35 fighter jets and missile defense and radar technologies, such as the “Golden Dome,” are critical to operations in the Arctic, where Greenland’s strategic location strengthens U.S. surveillance and deterrence against Russian and Chinese incursions.
Source: InvestPro
In 2026, LMT shares are up about 19% year to date, fueled by President Trump’s proposed $1.5 trillion defense budget for 2027, which promises larger procurement contracts.
If geopolitical tensions remain high, markets often reward predictable cash flows and long-term contracts. As such, Lockheed’s backlog, strong free cash flow, and stable dividend make it a classic “geopolitical hedge” stock.
2.RTX – Increased demand for aerospace and missiles
RTX, formerly Raytheon, emerges as a key beneficiary with its comprehensive defense technology portfolio that meets the complex requirements of Arctic operations. Its missile defense and advanced radar systems are essential for monitoring and protecting strategic territories like Greenland.
The company’s Patriot missile defense system is growing in importance as countries seek proven defensive capabilities that can operate in extreme weather conditions while providing protection against sophisticated threats.
Source: InvestPro
Action RTX…
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