Geopolitical risk in the Strait of Hormuz has shifted from background noise to front-page headlines, with shipping strikes, talk of an indefinite U.S. naval blockade and gasoline near $4 a gallon reshaping how investors think about energy and defense exposure. That mix of supply anxiety and higher military spend expectations can quickly reorder market priorities. This article walks through three stocks from our Global Energy & Defense Stocks Leveraged to Middle East Supply Disruptions screener that are directly tied to these developments and explains how their exposure to the latest news could matter for your portfolio decisions.

The stocks covered below are only a small sample, and the full screen surfaced 47 more companies with equally compelling narratives that are not discussed in this article. To go deeper into this opportunity set, head straight into the Global Energy & Defense Stocks Leveraged to Middle East Supply Disruptions screener to filter, analyze, and identify the ideas that best fit your own energy and defense playbook.

V2X (VVX)

V2X provides mission critical support services across the defense sector, from logistics and base operations to platform maintenance, with essentially all of its roughly $4.9b in revenue coming from aerospace and defense maintenance and services. The company is heavily tied to U.S. government work, yet it also has meaningful exposure across Asia, Europe and the Middle East, where its on the ground presence has been a focus in recent earnings calls. With a market cap of about $2.5b, V2X sits in a bracket where contract wins, backlog trends and shifting conflict zones can all move the story quickly.

Investors watching the Strait of Hormuz may want to keep V2X on their radar. The company is already closely linked to Middle East operations and broader U.S. defense readiness, with a sizeable backlog, recent contract wins across the Marines, Navy and Air Force, and an expanding role in AI driven logistics and sustainment. Some observers highlight earnings growth potential and valuation support, yet V2X relies on large, episodic contracts, carries meaningful debt and has seen insider selling alongside an inexperienced management team. The key consideration is how that mix of contract momentum, balance sheet risk and geopolitical exposure could factor into portfolio decisions.

V2X’s contract momentum and AI driven logistics story can look powerful on the surface. Yet the real puzzle sits in its leverage and episodic revenue. Get the full picture in the 4 key rewards and 2 important warning signs (1 is major!)

Build your own defense and energy opportunity shortlist

V2X and the two other stocks in this article all came from a single Simply Wall St screener, but your edge comes from tailoring the search to your own priorities. Use our flexible Screener to blend filters like valuation, growth outlook, balance sheet strength and risks, or jump straight into our curated Investing Ideas for ready made starting points.

Chemring Group (LSE:CHG)

Chemring Group supplies countermeasures, sensors, electronic warfare tools and energetic materials that help protect aircraft, ships and ground forces from missiles and other threats. The business is split between Sensors & Information, which generated about £177 million in revenue, and Countermeasures & Energetics, which brought in roughly £335 million. The company has a market cap of about £1.7 billion.

Investors watching the Strait of Hormuz will see Chemring Group sitting close to the action, with products such as missile decoy flares, airborne countermeasures and advanced sensors that are directly relevant to intense Gulf air and naval activity. A strong order book, capacity expansion at Chemring Nobel and a fresh multi year US airborne decoy contract point to sustained demand. However, recent margin pressure, operational issues at certain sites and reliance on external borrowing keep risk firmly on the table. With management transition ahead and shares trading not far from some fair value estimates, the key question is whether the company’s rearmament exposure and buybacks justify taking that risk now or waiting for a clearer entry point.

Chemring Group’s rearmament story and buybacks can look compelling, yet recent margin pressure and site issues leave a lot unsaid. Get the fuller picture in the 2 key rewards and 1 important warning sign

Antero Midstream (AM)

Antero Midstream runs the pipes, compressors and water systems that move natural gas and liquids from Antero Resources’ wells in Appalachia to market, handling both gathering and processing as well as water delivery and disposal. Most of its roughly $1.3b in revenue comes from Gathering and Processing at about $1.0b, with Water Handling contributing around $278 million, all generated in the United States. The company has a market cap of about $10.5b.

Antero Midstream sits at the intersection of the Strait of Hormuz story and the U.S. LNG build out. Its Appalachian gathering system is described as the “critical first link” to premium gas markets, with high EBITDA margins, CPI linked contracts into the mid 2030s and Q2 2026 EBITDA of $289 million supported by more than 4.1 Bcf/d of volumes. At the same time, investors are paying a premium P/E multiple for that fee based cash flow, with heavy reliance on Antero Resources, high leverage and a dividend that is not well covered by earnings. The East Side Express pipeline, multibillion dollar project backlog and 4% yield make Antero Midstream a notable name in its space, but the concentration and balance sheet risks mean the full story deserves closer scrutiny.

Antero Midstream’s premium P/E, CPI linked contracts and 4% yield can look tightly priced. However, the real story sits in how those cash flows stack up against its leverage and concentration risks in the 2 key rewards and 2 important warning signs

Curious About Seeking High-Conviction Alternatives

Fresh ideas can move before you expect, with breakouts, momentum shifts and stories flying under the radar for now. Check these focused stock lists before the crowd and review them carefully.

• Spot companies quietly building strength before momentum headlines hit by scanning the list of solid balance sheet and fundamentals (50 results), which filters for stronger finances and fundamentals.
• Track where income characteristics might hold up even if prices drop by reviewing the 10 dividend fortresses, curated for higher yield and resilience-focused opportunities.
• Evaluate companies that may benefit from infrastructure build-outs related to data and AI demand by reviewing the 38 power grid technology and infrastructure stocks, centered on grid technology and upgrade projects.

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.