Political shocks can ripple quickly through defense and aerospace stocks, and the sudden death of Senator Lindsey Graham has added a fresh layer of uncertainty around U.S. budget priorities, sanctions, and foreign policy. For investors, that means some companies in this space could see sentiment shift as markets reassess funding expectations, export prospects, and geopolitical risk. This article looks at three stocks from our Defense and Aerospace Stocks screener that appear closely exposed to the current news backdrop, highlighting how each might be positioned as political debate over spending, sanctions, and security heats up.

Miller Industries (MLR)

Overview: Miller Industries manufactures towing and recovery equipment, including wreckers, car carriers with hydraulic tilt systems, and transport trailers, serving auto manufacturers, dealerships, auctions, government customers, and other operators under brands such as Century, Vulcan, Chevron, Holmes, and Challenger.

Operations: Miller Industries generates about US$745.5 million in revenue primarily from auto manufacturers, with roughly US$586.8 million from North America and US$158.7 million from foreign markets.

Market Cap: US$558.3 million

For investors watching defense exposed manufacturers, Miller Industries stands out as a pure play on complex vehicle systems at a time when political focus on equipment readiness and defense procurement is in the spotlight. The company is already supplying advanced and military related platforms, yet its P/E sits below some peers and recent earnings have been pressured, which together point to a mix of perceived opportunity and caution. Margins have weakened and returns on equity are low, while Q1 2026 results showed softer revenue and profit, reminding you that execution and contract timing matter. On the other hand, continued dividends and ongoing buybacks signal confidence from management, and the narrative around aging vehicle fleets and more complex repairs suggests the current picture may not tell the whole story.

Miller Industries looks like a complex story, with a lower P/E, pressured margins, and steady capital returns potentially masking a much bigger inflection point. The 3 key rewards and 1 important warning sign could show where that story really turns.

Ducommun (DCO)

Overview: Ducommun is a long established aerospace and defense contractor that designs and manufactures complex electronic systems, aerostructures, and motion control components used across military aircraft, missiles, space programs, and commercial aviation.

Operations: Ducommun generates about US$471.2 million from its Electronic Systems segment and US$370.2 million from Structural Systems.

Market Cap: US$2.5b

Ducommun sits at the heart of key defense and aerospace programs, which puts it directly in focus as markets react to renewed debate over U.S. budgets and foreign policy after Senator Graham’s death. The company is tied into missile, radar, and aircraft build rates, with analysts expecting revenue and earnings to improve and recent Q1 2026 results showing stronger sales and higher net income. At the same time, Ducommun is still working through current unprofitability, relies entirely on external borrowing, and insiders have recently been selling stock. All of this raises fair questions about risk. If you want to understand how those trade offs compare with a lower P/S than many peers and an active acquisition strategy, the rest of the Ducommun section matters.

Revenue momentum at Ducommun, a lower P/S than many peers, and fresh Q1 2026 profit improvement could be masking a bigger story; the 2 key rewards and 1 important warning sign might reveal where optimism stops and the real risk begins

NPK International (NPKI)

Overview: NPK International provides temporary worksite access solutions by manufacturing, renting, and installing recyclable composite matting systems, along with services such as access road construction, site preparation, environmental protection, and site restoration for power, energy, pipeline, petrochemical, construction, and other infrastructure projects.

Operations: NPK International generates about US$287.3 million from Industrial Solutions, with roughly US$263.9 million from the United States and US$23.4 million from the United Kingdom.

Market Cap: US$1.2b

NPK International provides direct exposure to long term utility and infrastructure spending, as its composite mats and access services are tied to transmission, pipeline, and energy projects that need to keep moving even when politics turn uncertain. The stock screens as attractively priced against some estimates of fair value. Recent index reclassifications toward growth benchmarks and higher 2026 revenue guidance indicate the market is starting to view it more as a growth story than a pure value play. At the same time, rising funding risk, softer margins, and reliance on large projects mean earnings can be sensitive to delays or policy shifts. The key consideration is whether the current mix of discount, growth expectations, and project exposure adequately reflects those risks or leaves room for a larger re-rating in the future.

Growth expectations at NPK International could be decoupling from how the market prices its project risk, and the analyst forecasts for NPK International lays out one detail that could flip how you see the stock

The three defense and aerospace stocks covered here are just a starting point, with the full Defense and Aerospace Stocks screener uncovering 39 more companies that pair solid fundamentals with equally compelling narratives around military technology, export potential, and budget exposure. Use Simply Wall St to identify, compare, and analyze the specific catalysts that matter to you so you can filter this wider universe down to the opportunities that best match your views on financial health, valuation, and future potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.