RTX and Honeywell Aerospace Set to Soar as Global Defense Spending Hits $2.9 Trillion

The global defense spending has reached a staggering $2.9 trillion last year, accounting for roughly 2.5% of the world's economic output.

This significant increase in military expenditure is driven by ongoing conflicts in Iran and Ukraine, as well as other countries' desire to be proactive and spur economic activity.

Two industrial stocks poised to benefit from this trend are RTX and Honeywell Aerospace.

RTX has a sizable backlog of $289 billion and could surge to $460 billion by the end of 2028, making it a preferred defense vendor for various governments.