Are you searching for the best growth stocks in 2026 to bolster your portfolio with resilient, sector-focused investments? The Defense & Security Improvers portfolio is designed as a powerful sector ETF alternative, targeting high-potential companies in the industrials sector with a razor-sharp focus on defense and security innovation. With a Tradestie Score of 56.31/100, this portfolio aims for steady appreciation by investing in undervalued stocks poised for growth amid rising global security demands and robust government contracts projected for Q1 2026.
This portfolio holds just three carefully selected stocks, each comprising 33.3% of the allocation: BWX Technologies Inc (BWXT), Lockheed Martin Corporation (LMT), and Arts-Way Manufacturing Co Inc (ARTW). BWX Technologies (BWXT) stands out with its nuclear technology expertise, making it a critical player in defense infrastructure with strong growth potential based on current valuations. Lockheed Martin (LMT), a titan in aerospace and defense, continues to secure massive contracts, positioning it as one of the best industrials stocks to buy for 2026 market outlooks. Meanwhile, Arts-Way Manufacturing (ARTW) offers niche exposure to defense-related equipment, an undervalued gem with upside as geopolitical tensions drive demand. Together, these picks target long-term value investing in the industrials sector. However, investors should note the portfolio’s low diversification score of 3.3/100, reflecting high concentration risk.
Tailored for aggressive growth investors and those seeking alternatives to broad market ETFs, this portfolio suits individuals comfortable with sector-specific volatility. Ideal for the seasoned investor eyeing defense sector stocks, it’s not for the faint-hearted beginner investor or passive income seekers chasing dividend income. Key considerations include geopolitical risks, government budget shifts, and market volatility in the industrials space, which could impact returns. If you’re ready to navigate these risks for potential high rewards, Defense & Security Improvers could be your 2026 growth engine.