1 Sure-Fire Winner From Trump’s “Golden Dome” Proposal

During President Trump’s address to Congress the other day, he unveiled an ambitious proposal to develop a “Golden Dome” missile defense system, inspired by Israel’s Iron Dome, aimed at shielding the U.S. from a range of missile threats, from short-range rockets to advanced ballistic and hypersonic weapons. 

This initiative, framed as a step toward building “the most powerful military of the future,” underscores a renewed focus on national security amid escalating global tensions. The plan’s importance lies in its potential to deter adversaries like Russia and China, whose advanced missile arsenals pose growing risks, and to bolster U.S. defense autonomy. 

However, there is no clear trajectory to success. The U.S. is 400 times larger than Israel, which raises questions about the Golden Dome’s technical feasibility, as well as its cost, which could easily run into the hundreds of billions of dollars. There is also the complexity of space-based interceptors and whether they could even work. 

Yet for investors, the proposal signals a golden opportunity for defense stocks, as increased government spending and innovation demands could drive significant growth. There is also one stock that stands above all others as reaping the benefits from creation of a Golden Dome.

Hitting with an iron fist 

The Iron Dome missile defense system is a highly effective, mobile, all-weather air defense system designed to intercept and destroy short-range rockets, artillery shells, and mortars, primarily to protect civilian populations and critical infrastructure. 

Israel operates 10 Iron Dome batteries, each with three or four launchers, 20 Tamir interceptors per launcher, and a radar system. Batteries are stationed near population centers like Tel Aviv, Jerusalem, and Haifa, as well as along the Gaza border. 

During the October 2023 conflict with Hamas, the Iron Dome intercepted over 2,000 rockets with a 90% success rate. Additional batteries have been deployed in northern Israel to counter Hezbollah threats, especially after escalated tensions in 2024.

The system was built by two Israeli companies, Rafael Advanced Defense Systems and Israel Aerospace Industries, yet they contract with U.S. defense contractor RTX (NYSE:RTX) for the Tamir missiles, which are built by its Raytheon division.

RTX would be the prime beneficiary of a Golden Dome initiative.

By land, sea, and air

The U.S., of course, already has a multi-layered missile defense system. There is the well-known Patriot missile system that is deployed at various military bases in the country, though more often they are in forward-deployed regions or allied nations under immediate threat. 

The Patriot system is a long-range, all-altitude, all-weather air defense system to counter tactical ballistic missiles, cruise missiles, and advanced aircraft. But because the biggest threat to the U.S. is from long-range ones, the military also deploys the following:

• Terminal High Altitude Area Defense (THAAD) to protect against short- and medium-range ballistic missiles in their terminal phase;.
• The sea-based Aegis Ballistic Missile Defense (BMD) for short- and medium-range ballistic missiles, but also against some intercontinental ballistic missiles.
• Ground-Based Midcourse Defense (GMD) for protection against ICBMs. 
• Short-Range Air Defense Systems (SHORAD) for threats from low-flying aircraft, drones, rockets, artillery, and mortars.
• Counter-Rocket, Artillery, and Mortar (C-RAM), also for rockets, artillery, and mortars.

Since ICBMs are the greatest threat, GMD is the primary shield, with Patriot as a backup for shorter-range threats. Many of the other systems are deployed overseas. Yet a common thread to all of them is that RTX is the primary or secondary defense contractor supplying components. 

The best offense is a good defense

Because RTX has expertise in building almost all of the components related to these defense systems — radar, ground systems, and launching stations, as well as many of the missiles themselves — it will undoubtedly be tapped to provide similar systems to the Golden Dome.

Undoubtedly others will be involved as well, including Lockheed-Martin (NYSE:LMT), the world’s largest defense contractor and the primary contractor for THAAD and BMD (along with RTX), as well as Boeing (NYSE:BA), which is the contractor for GMD and THORAD. RTX, though has its thumb in virtually all of those pies.

RTX is the second-biggest defense contractor, generating $80.7 billion in revenue last year, up 17% from 2023, with adjusted operating profits of $10.2 billion. The Raytheon unit generated $26.7 billion in sales last year with adjusted operating profits of $2.7 billion. 

Although RTX stock is up 44% over the last 12 months, it trades at a reasonable 19 times next year’s earnings and going for twice its sales. RTX could be the golden ticket to cash in on the Golden Dome.

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