Defense stocks are surging—which 3 under-the-radar aerospace plays could double if tensions escalate with China?
8/18/2025 10:21am
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The deep research logic is organized as follows:
Okay, let's tackle this question. The user is asking about under-the-radar aerospace defense stocks that could double if tensions with China escalate. They mentioned the user's interest in tech sectors like AI, MAG7, wearables, and the metaverse, so I need to connect that with the current query.
First, I'll look at the references provided. The user's query is about defense stocks, so I should focus on the companies listed in the references. The references include AIRO, SIDU, OPXS, and DPRO. The user wants three stocks, so I'll need to pick the top three from these.
Looking at the data, AIRO Group has strong revenue and EPS growth, over 150% YoY. They're in the aerospace and defense industry, which fits. Their market cap is under $1 billion, making them under-the-radar. They also have a negative P/E ratio, which might be a red flag, but their recent earnings show profitability. The user's profile mentions interest in high-growth tech stocks, so AIRO's expansion into AI-powered drones and strategic partnerships could appeal.
Next, Sidus Space (SIDU) has revenue growth but a widening net loss. Their focus on AI satellites and defense hardware aligns with the user's interest in AI. However, their stock is near delisting, which is a risk. The user might be okay with high-risk, high-reward plays, especially if tensions escalate. Their recent funding for hypersonic tech could be a plus.
Optex Systems (OPXS) has consistent revenue and EPS growth, around 22-23% YoY. They're in the defense sector with contracts for optical systems. Their market cap is also under $1 billion. The user's interest in GICS sectors and P/E ratios makes OPXS a stable choice. Their recent contracts and backlog suggest steady growth, which could be a safer bet among the three.
Draganfly (DPRO) is another option, but their revenue growth is lower, and they have a comprehensive loss. Their focus on drones for defense and public safety is relevant,