Non-ITAR defense suppliers such as Electro Optic Systems, BAE Systems, Theon and Rheinmetall are an overlooked source of alpha as Europe, Asia and the Middle East shift defense spending away from US ITAR-controlled equipment. That shift comes with huge spending, yet US-based investors misunderstand it and wrongly call defense tech dead. Eurosatory confirmed the view, and the big alpha is not in drone builders. x.com  x.com  x.com 

European equities offer relatively low cross-region valuations alongside excellent fundamentals across infrastructure, aerospace, space and defense, financials and other industrial segments. This is the most bullish outlook on the region since after Liberation Day last year. Ferrovial, Societe Generale, RWE, OHB, BNP Paribas and Nexans are named as expressions of that view. x.com 

Hyundai Rotem looks interesting as defense demand stays strong and valuations have become more reasonable. Defense order backlogs extend into 2030, and the 'end' of the Iran conflict has resumed contract discussions in the Middle East. Hyundai Rotem makes tanks, and Nippon Avionics, an information-systems maker, also looks interesting in Asia. x.com 

BAE Systems is a straightforward buy because the new era of defense spending is geopolitical, not cyclical, as NATO and allies rearm for a decade and Europe can no longer count on US protection. Long-cycle contracts and a record £80bn-plus backlog give visible revenue, sales grow steadily at 8-10%, and dividends rise about 8% a year. Its cyber, electronic and next-gen air systems have proven vital, and government-backed demand protects margins. It is no longer cheap, but quality rarely is. x.com 

European defense tech clearly leads US peers in battlefield impact, getting real-world combat validation years ahead of most legacy US primes' roadmaps. US allocators still treat Europe's sovereignty buildout as a sentiment trade rather than the multi-year EU procurement policy it actually is. This answers @LarsenJensenUSA asking whether European defense tech has had a greater battlefield impact than American firms. x.com 

Theon International is a European defense company with excellent management, executing a roll-up strategy with huge tailwinds from European defense spending. Focused on night vision, it just bought a counter-drone company. Fundamentals improved in the latest quarter, yet the stock is down big on broad defense-market bearishness and sits within 10% of its trailing lows. x.com 

Defense stocks such as Kratos, AeroVironment, Ondas, Northrop Grumman and L3Harris are trading as if global leaders had turned into pacifist hippies, which is probably not the case. x.com 

The Korean defence ETF looks very attractive at $42, about 22x forward earnings, as rising defence spending, especially in the EU, favors Korean firms. Korean defence is mostly ITAR-free, cheaper and faster, and its suppliers are the only ones with idle capacity as nations seek less reliance on the US. Big catalysts include Canada's submarine award in H2 2026, Hyundai Rotem tank deals, Norway's $922M Chunmoo, Finland's €547M K9s and Poland's framework for up to 1,000 K2 tanks. x.com 

Rising regional conflicts and soaring NATO spending commitments favor defense companies such as Rocket Lab and RTX, which carry massive multi-year backlogs. Rocket Lab, a $40 billion space launch and defense technology player, is up about 2,700% from its lows. RTX is up a more modest 69% but acts as a remarkably safe, high-yielding haven when institutions rotate. Both sit on the winning side of a 2026 market where money is rotating into favored sectors rather than lifting the whole index. x.com 

Lockheed Martin is cheap against its earnings, trading at 22x trailing and 18x next year's, versus the 24x aerospace and defense suppliers usually get. At 24x next year's $32.72 EPS, give or take 12%, fair value runs $690.97 to $879.42, so the stock sits 15% below where fair value starts. This is a valuation read on reported earnings and estimates only, not fundamental work. x.com