Heightened political tension around President Trump’s July 4 speech, visible partisan branding at the Freedom 250 events, and tighter security on the streets are all feeding into a broader debate about where risk, and potential opportunity, now sit in the market. Defense and security stocks are squarely in that conversation, as government priorities, protest activity, and even extreme weather can all shape budgets and sentiment. This article walks through 3 stocks from our Defense and Security Stocks screener that appear positively exposed to these headlines. It is intended to help you decide whether they deserve a closer look or a place on your watchlist.

Miller Industries (MLR)

Overview: Miller Industries manufactures towing and recovery trucks and trailers used to move disabled or new vehicles for customers such as auto manufacturers, dealers, leasing companies, emergency services and government agencies, with a portfolio of specialist brands covering everything from light wreckers to heavy recovery rigs.

Operations: Miller Industries generates all of its US$745.5m in revenue from auto manufacturers, with about US$586.8m coming from North America and US$158.7m from foreign markets.

Market Cap: US$558.5m

Investors looking at defense exposed industrials may find Miller Industries interesting because it sits at the intersection of everyday vehicle breakdowns and mission critical towing capacity for emergency and military logistics. The company is working to keep its supply chain concentrated in the US at a time when tariffs, domestic content rules and security focused spending are front of mind, but it is also dealing with weaker recent earnings, low current margins and regulatory hurdles such as Advanced Clean Truck rules. With buybacks, a regular dividend and analyst expectations for higher future earnings, the tension between recent pressure and longer term potential is where the real story starts for Miller Industries.

Miller Industries sits at the intersection of tight US supply chains, defense logistics and everyday towing needs, and the real question is whether that mix is masking bigger potential. Get the 3 key rewards and 1 important warning sign

Brady (BRC)

Overview: Brady Corporation makes the labels, signs, printers and safety systems that keep factories, hospitals, utilities and secure sites clearly marked and compliant, from hazard signs and spill control products to wristbands, asset tags and access control badges used across industrial, healthcare and government settings.

Operations: Brady generates about US$1.1b in revenue from the Americas and Asia and about US$550.6m from Europe and Australia through a mix of distributors, direct sales and digital channels.

Market Cap: US$4.3b

Brady sits squarely in the conversation when political tension, security concerns and tighter compliance rules are front page news, because its identification and safety systems are embedded in defense facilities, data centers and critical infrastructure. The company is leaning into higher margin areas such as automation, traceability and compliance software, backed by R&D and acquisitions such as Honeywell’s Productivity Solutions and Services unit. It is also taking on a US$1.0b credit facility and higher tariff exposure that could pressure margins if conditions turn. With earnings growth expectations, active buybacks and a CEO recently buying shares with personal capital, the key consideration for investors is whether Brady’s push into more complex security and tracking solutions justifies the added execution and balance sheet risk.

Brady’s push into higher margin automation and tracking looks like it could be masking a bigger story about where earnings power is heading next. For the full context, see the analyst forecasts for Brady

Southern Cross Electrical Engineering (ASX:SXE)

Overview: Southern Cross Electrical Engineering provides electrical, communications, security, fire and maintenance services across Australia, working on data centers, resources projects, transport and social infrastructure, as well as decarbonization projects such as solar and wind farms under a portfolio of specialist brands.

Operations: Southern Cross Electrical Engineering generates A$691.2m from electrical, security and communication services, with total revenue of A$753.1m earned in Australia.

Market Cap: A$1.2b

Southern Cross Electrical Engineering gives you exposure to Australia’s build out of critical digital and security infrastructure at a time when domestic political tension, defense priorities and data center demand are all in focus. A record order book tied to data centers and critical assets sits alongside forecasts for strong earnings and revenue growth, yet recent results were affected by a large A$46.1m one off loss that dragged reported margins down to 0.4% and leaves headline profitability looking weak. Add in insider selling, higher leverage and recent equity raises, and you have a company where the balance between structural opportunity and contracting risk is finely poised, which is one reason many investors are taking a closer look.

Southern Cross Electrical Engineering’s record order book and data center exposure suggest the headline numbers may not tell the full story of where earnings power is heading next. The real twist sits inside the analyst forecasts for Southern Cross Electrical Engineering

The three stocks covered here are only a small slice of the opportunity, and the full Defense and Security Stocks screener highlights 37 more companies with equally compelling defense and security narratives that could merit a spot on your watchlist. Use Simply Wall St to unlock, identify and analyze the specific catalysts, contract exposure and balance sheet strength that matter to you so you can focus on the highest conviction ideas in this space.

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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.