Buy Bae Systems Shares

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Buy Bae Systems Shares

Is It Too Late To Buy BAE Systems Shares?

The market cap of BAE Systems is now hovering above 61.9 billion. This makes many wonder if it is too late to buy the BAE Systems or if there is still enough upside potential.

One reason why BAE Systems has been trending higher in the last few months is geopolitical developments. Even in 2026, the BAE Systems stock price has maintained its uptrend and is now sitting at multi-weeks high.

US Defense Budget Reached New Highs

To understand where the BAE Systems share price is heading, we must understand what is fueling it. We all know that the security and defense landscape is changing all around the world.

Also, the 50% hike in the defense budget is announced, which will push it to $1.5 trillion in 2027. Meanwhile, the UK and the French authorities are also expected to raise their defense budgets.

This is the ideal environment for BAE Systems as it makes military aircraft, drones, submarines, warships, and much more. So, whenever the world feels in danger, they start spending more on defense, and BAE Systems gets to benefit from it.

The data shows that close to 50% revenue of BAE Systems comes from the Pentagon. They have also recently signed a contract worth $1.7 billion with the US Navy. Looking ahead, the increase in military expenditure will provide ample opportunities for BAE Systems.

If we look at Europe, even they are planning to spend around 800 billion in just defense infrastructure by the year 2030.

So, the overall situation of the world looks very good for the BAE Systems share price. So, it is not rocket science to expect the BAE Systems share price to continue risingin 2026 and 2027.

Also, the forward P/E of BAE Systems is 24, which is a little high from its historical average. But the order book of BAE Systems totally justifies this high valuation.

However, a major risk for BAE Systems is supply chain disruption. For example, the export controls by China might make it difficult for BAE Systems to get the metals and minerals needed for its products.

With all things considered, BAE Systems is a very good stock and investors can expect huge upside in the coming years.

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