General Dynamics (GD)
Current: 354.84
Price target: Hyper Stocks Pro
Given the current state of the geopolitical climate and uncertainty, global defense budgets are rapidly expanding as countries enhance their military capabilities. Global defense reached a record $2.9 trillion, marking its 11th consecutive year of increases. This represents about 2.5% of the world’s GDP, that highest level in more than a decade. Of course, the biggest contributor to this spending is the United States at around $1 trillion. Who benefits? None other than the giant defense contractors, many of which are American…and General Dynamics being one of them.
What Does General Dynamics Do?
General Dynamics is one of the largest U.S. defense and aerospace companies, operating across four segments:
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Aerospace - Gulfstream business jets (their crown jewel in commercial aviation)
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Marine Systems - Nuclear submarines and surface combatants for the U.S. Navy
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Combat Systems - Abrams tanks, Stryker vehicles, artillery, and ammunition
- Technologies (GDIT) - IT services, cybersecurity, cloud, and AI for government agencies
If you’ve been in our premium group for a while, you’ll know this is not a new name to us. In fact, we’ve been holding a position since before their recent earnings…let’s talk about how they did.
Financials & Backlog
Q1 2026 saw double digit growth in revenue, earnings, AND backlog. With strong cash flow and robust order activity across all segments. EPS guidance was raised for the year, and record contract value and backlog were achieved. The company ended the year with a backlog record of $118 billion, with an additional possibility of $60.9 billion, putting them at $179 billion, up 24% from a year earlier. This was one of the strongest reports in the military industry, and their exposure to commercial aviation also puts them as a winner in both as recored spending grows in the categories.
Risks
Real risks include a cut back in government spending, budget changes, and competition. Any stock one buys carries risks and unforeseen changes, our job is to monitor those changes and act on them (not just on the chart, but at its fundamentals).
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around and the outlook may change. Trade at your own risk.
Invesco Solar ETF (TAN)
Current: 59.27
Price target: Hyper Stocks Pro
There’s an unexpected winner starting to emerge from the U.S.-Iran conflict, and most investors are looking right past it. This isn’t just a “war headline” trade either. This is an industry that already had strong catalysts forming beneath the surface, but the current geopolitical backdrop could pour gasoline on the setup and potentially supercharge it higher.
The industry? Renewable energy. A recent executive director from the IEA stated that the ongoing Iran conflict is expected to accelerate investment into renewables (solar in particular) because they are a “homegrown” domestic energy source that reduces geopolitical risk. With oil price volatility rising around potential Strait of Hormuz disruptions, renewable energy is becoming even more cost competitive. That gives solar a major macro tailwind today that wasn’t nearly as strong 12 months ago.
Why an ETF?
Invesco Solar ETF holdings include First Solar, Nextpower, Enphase Energy, Solaredge, and 40 more renewable energy companies. This gives us broad exposure to the industry without the risk of taking on a single company…although we’re already holding ______ and ______ in our Hyper Stocks Pro swing positions as they present very strong upside potential. Our outlook remains bullish on the industry as a whole, with an optimistic target on the ETF that surpasses its three year highs (40% upside).
The Case for Renewables & AI
One of the strongest long-term arguments for TAN is simple…AI needs a lot more power. Data centers already use a massive amount of electricity, and that demand is expected to more than double by 2030. To keep up, major AI companies are signing large solar deals to help power their data centers. That’s a big deal for solar. Renewables are expected to be one of the fastest growing energy sources for data centers, and Enphase is already leaning into this trend with new technology built for AI power needs.
The only caveat is that this won’t necessarily happen overnight. Some data center projects are already slowing down, and not every planned project will actually get built. So the AI energy story is real, but it may take longer to show up in revenue than the headlines suggest. But nonetheless, there are several catalysts that support upside on renewable energy.
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around and the outlook may change. Trade at your own risk.
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Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.