US defense and aerospace stocks are back in focus after Donald Trump’s high profile July 4th speech, which leaned heavily on patriotic messaging, military strength and a tougher stance on future elections. For investors, this mix of potential policy shifts, headline risk and talk of stronger defense priorities could reshape how money moves across the sector. This article looks at three US Defense and Aerospace Stocks screener picks that appear especially exposed to these political currents, and explains why some investors may see them as potential opportunities while others may prefer to stay on the sidelines.

Nextpower (NXT)

Overview: Nextpower is a Fremont based solar and energy technology company that supplies tracking systems, software and foundations to help utility scale solar plants produce more power in a wider range of terrains and weather conditions across the US and international markets.

Operations: Nextpower generates about US$3.6b in revenue from electronic components and parts, with roughly US$2.7b coming from the United States and US$828.7m from other international markets.

Market Cap: US$16.96b

Nextpower operates at the intersection of clean energy, grid resilience and battery storage, which is increasingly relevant as political attention returns to US infrastructure and defense related power needs. The company reports a sizable backlog and net margins of 16.5%, and its P/E ratio is below the Electrical industry average. Recent acquisitions in energy storage and European hardware broaden its platform beyond trackers alone. At the same time, funding structure, a relatively new board and heavy US exposure raise concentration and governance questions that investors may wish to consider. The balance between these positives and risks is central to understanding the current investment narrative around Nextpower.

Nextpower’s mix of grid resilience, clean energy and defense related power needs gives the story real potential, but the key question is how that translates into fundamentals. Get the full picture in the analysis report for Nextpower

Sterling Infrastructure (STRL)

Overview: Sterling Infrastructure is a US construction and engineering company that builds and develops critical assets such as data centers, e-commerce and manufacturing sites, roads, bridges, airports, ports and residential and commercial foundations across multiple regions, including the Southern US, Northeast, Mid Atlantic, Rocky Mountain areas and the Pacific Islands.

Operations: Sterling Infrastructure generates about US$1.85b from e-Infrastructure Solutions, US$652.9m from Transportation Solutions and US$385.7m from Building Solutions, with total revenue of roughly US$2.88b earned in the United States.

Market Cap: US$21.50b

Sterling Infrastructure is attracting attention because it sits at the heart of multi year themes investors focus on, including AI data centers, manufacturing mega projects and long term transport upgrades that may intersect with future defense facility work. Record backlog, high returns on equity and raised 2026 guidance indicate contracted work in hand, while recent acquisitions expand its footprint in regions and services identified as being in high demand. At the same time, a rich P/E multiple, funding reliant on external borrowing, insider selling and a volatile share price indicate that expectations are already high and that execution on complex projects is important. With political rhetoric refocusing on American strength and infrastructure, the key consideration for investors is whether Sterling’s current positioning and pricing leave enough room for comfort.

Sterling Infrastructure’s record backlog and high returns on equity suggest powerful momentum, but with a rich P/E and volatile share price, the real story sits in the fine print of the 3 key rewards and 2 important warning signs (1 is major!)

Fluence Energy (FLNC)

Overview: Fluence Energy provides grid scale battery storage systems and software that help utilities, power producers and large energy users keep electricity supply stable as more renewables and data center demand hit the grid across the Americas, Asia Pacific, Europe, the Middle East and Africa.

Operations: Fluence Energy generates about US$2.6b from batteries and battery systems, supported by activity across APAC, EMEA and other adjusted segments.

Market Cap: US$3.13b

Fluence Energy is attracting fresh attention because it sits where AI data centers, grid security and defense related power resilience meet, with a reported US$5.6b backlog, master supply deals with two hyperscalers and a recent partnership to support Nvidia’s next generation AI factories. The stock currently trades at a price to sales ratio of around 0.9x versus peers. Analysts have published forecasts that include revenue growth of about 18.9% a year and a potential shift from losses toward profitability within three years, although the company currently reports negative earnings and relies on external funding. With political rhetoric around tariffs, domestic manufacturing and grid cybersecurity intensifying, an important consideration is how Fluence converts its order book and policy backdrop into durable profits while managing high share price volatility and trade policy risk.

Fluence Energy’s order book and hyperscaler ties suggest the story may be just getting started, but the real swing factor sits inside the analyst forecasts for Fluence Energy and one underappreciated risk that could flip the script

The three US defense and aerospace stocks covered here are just a starting point. The full US Defense and Aerospace Stocks screener surfaces 33 more US listed companies with sizable defense or aerospace exposure and equally compelling financial stories that may be worth a closer look. Use Simply Wall St to identify, filter and analyze the specific catalysts, balance sheet strength and contract or infrastructure narratives that matter most so you can focus on your highest conviction ideas in this sector.

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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.