Two Military Stocks to Buy With Limited Capital: An Investor's Guide

The geopolitical landscape has shifted dramatically over the past decade. Where once the world enjoyed what policymakers called a “peace dividend” following the Cold War, we now face a more fragmented global order marked by regional conflicts, territorial disputes, and great power competition. From the ongoing war in Europe to tensions in the South China Sea, governments worldwide are rapidly expanding their defense budgets. For investors with $500 to deploy, this environment presents a compelling opportunity—but you’ll need to look carefully. While most military stocks to buy have become increasingly expensive, a few companies still offer reasonable valuations.

Textron: A Hidden Military-Industrial Player

When you think of military stocks to buy, household names like Lockheed Martin or Raytheon Technologies often come to mind. Yet Textron represents a more nuanced opportunity in the defense sector. Though less prominent than megacap contractors, Textron’s portfolio spans multiple high-value defense markets.

The company operates through distinct divisions targeting different military needs. Textron Aviation produces both Cessna and Beechcraft aircraft for military and civilian customers. Bell Helicopter, its second-largest revenue generator, partners with Boeing to manufacture the V-22 Osprey—the Marine Corps’ critical tiltrotor platform. On the ground, Textron Systems manufactures the M1117 armored personnel carrier, LCAC 1000 hovercraft for Navy operations, and the RIPSAW M5 robotic vehicle platform acquired through its Howe & Howe subsidiary.

From a valuation standpoint, Textron presents an interesting proposition. At approximately $15.8 billion in market capitalization, the stock trades at roughly 19 times trailing earnings. More notably, its price-to-sales ratio hovers near 1.1—a metric many professional investors view as a fair entry point for military stocks to buy. Among the broader defense contractor universe, Textron ranks among the most attractively priced by this measure.

Huntington Ingalls: The Shipbuilding Specialist

Huntington Ingalls Industries offers a more specialized play within the defense sector. Originally the military shipbuilding division of Northrop Grumman, the company was separated in 2011—a spinoff that has rewarded patient investors handsomely. Since going independent, HII stock has appreciated more than eightfold, even as revenues barely doubled, illustrating the value creation potential when a focused operator controls a dominant market position.

Today, Huntington Ingalls stands as a primary supplier to the U.S. Navy. The company specializes in constructing nuclear-powered aircraft carriers and submarine platforms, while also producing amphibious assault vessels and destroyers. Additionally, Huntington builds cutters for the U.S. Coast Guard. This portfolio of platforms positions the company as an essential partner in maintaining American naval dominance—especially critical given the expanding Chinese People’s Liberation Army Navy, already the world’s largest by vessel count.

Priced at just over $13.2 billion in market capitalization with approximately $12 billion in annual revenue, Huntington Ingalls stock similarly carries a price-to-sales ratio near 1.1—comparable to Textron. However, recent developments suggest the valuation may soon become more expensive, as the U.S. Navy recently selected Huntington to design and build a new class of “small surface combatant” frigates. This contract could represent substantial future revenue, particularly given that the Navy originally planned to acquire 20 or more Constellation-class frigates before canceling that program.

Comparing Military Stocks to Buy: Which Offers Better Opportunity?

Both companies present reasonable entry points for investors seeking exposure to rising military spending. Textron offers diversified end-market exposure across multiple platforms, while Huntington provides concentrated access to the Navy’s modernization agenda in an increasingly contested maritime environment.

The deciding factor, however, may rest on near-term catalysts. Huntington’s recent frigate contract announcement signals potential for significant revenue expansion, whereas Textron’s opportunities remain more broadly distributed across its various divisions. For investors making a $500 allocation between these two military stocks to buy, Huntington Ingalls appears positioned for more pronounced near-term upside, assuming the Navy accelerates its surface combatant procurement timeline.

Both represent the type of opportunity that rewards patient capital in the defense sector—a space likely to remain favorable given persistent geopolitical tensions and the technological arms race reshaping modern military capabilities.