<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Replacing bombs and missiles launched during the Iran war could cost $25 billion.</li><li>Repairing damage to U.S. bases in the Middle East could double that.</li><li>10 stocks we like better than Aecom ›</li></ul>The United States and Iran reached a &#34;tentative deal&#34; to extend their ceasefire Friday, while negotiations over the fate of Iran's enriched uranium continue, as the Associated Press reported Friday. That's the good news: Despite sporadic exchanges of drone and missile fire last week, the Iran war remains on pause, and the estimated cost of the war remains at its previous $25 billion level.And now here's the bad news: The actual cost of the war to U.S. taxpayers is probably twice that.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2ODA2OC9kZW1vY3JhY3ktbWlzc2lsZS5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="419" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2ODA2OC9kZW1vY3JhY3ktbWlzc2lsZS5qcGcmdz03MDA"/>Image source: Getty Images. <h2>It depends on what the definition of $25 billion is</h2>The initial $25 billion figure the Pentagon estimated for the war's cost covered only the cost of replacing munitions expended in fighting it. It's the cost of replacing some:https://www.foxnews.com/politics/us-drains-critical-missile-stockpiles-iran-war-yearslong-rebuild-looms<ul> <li>1,000 Tomahawk cruise missiles.</li> <li>1,100 JASSM-ER stealth cruise missiles.</li> <li>1,200 to 1,300 Patriot interceptor missiles.</li> <li>1,000 Precision Strike and ATACMS missiles.</li> <li>The literally thousands of Joint Direct Attack Munition (JDAM) kits used to convert thousands of unguided bombs into &#34;smart bombs&#34; used in the later stages of the war.</li> </ul>Replacing all this expended ordnance can be expected to keep Boeing (NYSE: BA), JDAM's manufacturer; RTX Corporation (NYSE: RTX), which makes the Tomahawk; Lockheed Martin (NYSE: LMT), which makes the JASSM-ER, Precision Strike, and ATACMS; and RTX and Lockheed, who both manufacture varieties of the Patriot missile, busy for years.But this amount covers only the most visible cost of the war, and the most obvious &#34;defense contractors&#34; involved in recovering after the conflict. As CNN reports, U.S. bases around the Persian Gulf sustained damage from Iranian retaliatory strikes that could easily double the war's cost, adding a further $15 billion to $25 billion to the bill.<h2>Cui bono?</h2>Which companies will be involved in this part of the recovery? Perhaps unsurprisingly, RTX and Lockheed will again play leading roles as they replace Patriot and THAAD air defense missile radars destroyed in the conflict. Investors will need to dig through Pentagon contract announcements to guess at the other contractors, unmentioned in CNN's report, that may be hired for the rebuilding effort, however.Still, making the extra effort could pay off if it reveals to you undervalued stock ideas beyond the usual suspects. Where should you start? One place to look might be this Department of Defense website, which publishes large military contracts as they're awarded.Keep an eye out for such unusual stock ideas as KBR (NYSE: KBR), Aecom (NYSE: ACM), and Eaton (NYSE: ETN). Each has won Pentagon contracts over the past month, sometimes valued in the hundreds of millions of dollars, and often on retainer for the U.S. Army Corps of Engineers. Once the Iran war is well and truly over, these off-the-beaten-track kinds of defense stocks just might be the kinds of companies that Wall Street overlooks -- but that you will not.<h2>Should you buy stock in Aecom right now?</h2> Before you buy stock in Aecom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Aecom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aecom, Boeing, Eaton Plc, KBR, and RTX. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

The Pentagon estimates $50 billion in war damage repair costs following the Iran conflict, with $25 billion for munitions replacement and another $25 billion for base repairs. This spending benefits defense contractors like Boeing, RTX, Lockheed Martin, KBR, Aecom, and Eaton. While a tentative ceasefire exists, investors are advised to monitor Pentagon contracts for opportunities in these stocks.

nasdaq

Lockheed Martin

Eaton

Boeing

Aecom

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WisdomTree Global Defense Fund

ARK Space Exploration & Innovation ETF

SPDR S&P Aerospace & Def

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ISHRS Aero & Def

ARK Autonomous Tech & Robotics ETF

First Trust Indxx Aerospace & Defense ETF

NVIDIA

Intel

Getty Images

Netflix

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NVIDIA Corporation

Boeing Company

The Pentagon Has $50 Billion in War Damage to Repair. These Defense Stocks Stand to Win.