Three top U.S. defense stocks start October well below their 52-week highs despite strong earnings and rising defense budgets.

As U.S. defense budgets reach record levels, three major defense contractors—L3Harris Technologies, Northrop Grumman, and Huntington Ingalls Industries—enter October trading significantly below their 52-week highs. All three companies beat Q2 earnings estimates and raised full-year guidance, yet their stock prices have pulled back due to specific challenges such as delayed IPOs, program charges, and labor issues. Huntington Ingalls stands out with the largest earnings beat and fastest growth but faces labor-related execution risks that management is addressing. Investors see potential in these pullbacks as opportunities, with key upcoming catalysts including Air Force decisions on programs and improved operational throughput.

Northrop Grumman leads in market cap among the three defense stocks at $68.47 billion, followed by L3Harris Technologies at $44.39 billion and Huntington Ingalls Industries at $10.81 billion as of Oct 02, 2026 18:51 WIB. On Pluang, Huntington Ingalls shows a unique buying interest with 100% buy order activity, contrasting with L3Harris and Northrop Grumman, which are predominantly sold. Dividend yields are close, around 2%, reflecting steady income potential for these defense contractors.