Border security and surveillance stocks are back in focus as Europe wrestles with Spain’s migrant influx, disputed returns to Morocco and fresh calls for tougher controls inside the Schengen Area. These headlines are reshaping how investors think about companies with exposure to border management, screening technology and related services. Some businesses could see stronger demand for their solutions, while others may face policy risk or political scrutiny. This article looks at 3 stocks from a dedicated Border Security and Surveillance screener that appear positively exposed to the current news flow and explains what that could mean for your portfolio decisions.

Argan (AGX)

Overview: Argan is an engineering and construction company that builds and maintains large power plants, industrial facilities and communications infrastructure, handling everything from project design and equipment procurement to commissioning and ongoing services across the US, the Republic of Ireland and the UK.

Operations: Argan generates most of its revenue from its Power segment at about US$822.8m, with additional contributions from Industrial at US$196.7m and Teledata at US$22.4m. It is primarily focused on the United States where it earns about US$925.0m.

Market Cap: US$8.0b

Investors looking at border infrastructure and critical facilities may consider Argan because it combines large scale project expertise with rising interest in secure power and industrial assets. The company is closely linked to energy and infrastructure spending, which can support earnings but also ties results to cycles in project approvals and government priorities. Recent results highlight strong profitability and a solid balance sheet position. At the same time, the stock trades at a premium P/E and insiders have been selling, which raises questions about how much optimism is already in the price. The growing focus on reinforced borders and security sensitive construction could be a meaningful tailwind, but this depends on Argan continuing to execute cleanly on complex projects while managing valuation and funding risks.

Argan’s premium P/E ratio and insider selling could be masking factors that investors have not fully priced in yet. Get the full story through the 2 key rewards and 1 important warning sign

Insteel Industries (IIIN)

Overview: Insteel Industries manufactures steel wire reinforcing products that go into concrete structures, supplying prestressed concrete strand and welded wire reinforcement for bridges, highways, industrial buildings, residential projects and critical infrastructure.

Operations: Insteel Industries generates about US$707.7m in revenue from concrete reinforcing products, with roughly US$705.4m coming from the United States and a small contribution of US$2.2m from foreign markets.

Market Cap: US$592.7m

Insteel Industries provides focused exposure to the materials that sit inside border barriers, roads and civil infrastructure at a time when governments are debating tougher physical controls and increasing attention on critical structures. Earnings grew 17.2% over the past year and analysts expect solid revenue and earnings growth. The stock currently trades below some fair value estimates and at a lower P/E than many US Building peers, which may appeal to value driven investors who agree with those assumptions. The story carries risks, including margin pressure from imported inputs, tariff uncertainty and mixed construction end markets. High quality earnings, buyback activity and a long history in reinforced concrete products may make the balance of risks and potential rewards worth a closer look for some investors.

Insteel Industries’ earnings momentum and lower P/E hint that the market may be underestimating its role in hard infrastructure. The real question is what the full risk reward picture looks like in the 3 key rewards and 1 important warning sign

Ducommun (DCO)

Overview: Ducommun is an aerospace and defense supplier that designs and manufactures electronic systems, complex aerostructures and motion control components used in commercial jets, military aircraft, missiles and space programs, as well as in industrial and medical equipment.

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

Market Cap: US$2.8b

Ducommun provides focused exposure to aerospace and defense hardware at a time when border security, surveillance and missile demand are in the spotlight. The company participates in key programs supplying radar, sensors and aerostructures, and Q1 2026 results showed higher sales and stronger earnings. This indicates that restructuring efforts and higher margin engineered products are starting to gain traction. However, Ducommun is still transitioning from losses, carries higher risk external funding and faces a smaller backlog and pressure on some margins. As a result, execution on cost savings and acquisitions is particularly important. For investors following the Border Security and Surveillance theme, the combination of potential upside and execution risk makes Ducommun a significant name to monitor.

Ducommun’s earnings turnaround and border focused exposure could be masking a much bigger story. See how the execution risks and potential upside really stack up in the analysis report for Ducommun

The 3 stocks in this Border Security and Surveillance article are only a starting point. The full screener surfaces 16 more companies that carry equally compelling narratives around border technology and security exposure in the Border Security and Surveillance screener. Use Simply Wall St to identify and analyze the specific catalysts, risk flags and business narratives that matter most to you so you can focus on the highest conviction opportunities in this theme.

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Seeking Fresh Alternatives Beyond Border Security

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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.