China is flexing its muscles on the world stage, especially in the area near Taiwan.

In its latest show of strength, the global superpower conducted live-fire drills off the Taiwanese coast.

It may not be the most hopeful news. But even in scary times, you find certain market trends never go away.

Defense is one of those. The best defense stock to buy now owns a massive portfolio set up for solid growth as tensions rise.

Here's the latest indication that defense stocks should be on your radar. Then we'll show you the best stock to buy, all things considered.

How China Is Moving Defense Stocks

This represents a key milestone in China's march to global dominance.

The nation has been increasingly possessive of Taiwan under the spotlight of the last couple years. Last month, it even got American pro wrestler John Cena to apologize (in Chinese) for implying Taiwan was an independent country.

The island nation of Taiwan sees itself as that. And China has managed to ignore it for years. Now, however, China wants to make clear how it sees Taiwan.

Chinese state-run media recently bragged about its amphibious forces being able to reach the shore of Taiwan in less than a day.

Further, Taiwan's Foreign Minister, Joseph Wu, told CNN that Taiwan and the West need to prepare for conflict with China. This was right after one of the largest Chinese excursions by 28 military aircraft once again violated Taiwan's air space.

As we speak, China also carries out cyberattacks on Western nations. It has flatly denied this, accusing the United States of fabricating the accusations out of thin air for political purposes.

So, it seems that more conflict with China is inevitable. While one hopes that we can avoid armed conflict, if China keeps pushing the forced reunification with Taiwan, a military encounter may be inevitable.

Continued cyber conflict with China is already inevitable, and more attacks happen every day.

However, one company will be a massive beneficiary no matter which way the conflict ends up.

The Best Defense Stock to Buy Now

Raytheon Technologies Corp. (NYSE: RTX) is a defense contractor that provides all sorts of weapons and technology to the U.S. military. But you may not be aware of how big its cybersecurity and warfare offerings have become.

Raytheon currently partners with the Air Force to develop a Cyber Command and Control Mission System. This system will provide command, control, and situational awareness for Air Force and U.S. military cyber warfare forces, networks, and mission systems.

Raytheon has also developed a Cyber Anomaly Detection System, or CADS, that uncovers cyber intrusions, tampering, and hacks, then notifies aircraft and vehicle crews. The CADS looks for anomalies in the "bus" part of the communicating system that controls, monitors, and transfers data between different electronic components.

Raytheon Cyber Operations and Research conduct hundreds of simulated attacks every week to learn more about how to best help its military customers defend mission-critical infrastructure. Raytheon has developed the Persistent Cyber Training Environment to deliver cyber simulations that will allow cyber mission forces from all military branches to train together under realistic hostile conditions.

Now, here's why Raytheon is a buy today...

Why Raytheon Is the Best Defense Stock for 2025

If an armed conflict does develop at some point in the future with China, much of the initial fighting will be in the air and at sea. Raytheon makes radars and ship defense systems to help fight off enemy attacks. It also makes ship defense weapons systems to help fight off attacks for air and sea.

Raytheon makes command and control systems that used space-based sensors and advanced networks to determine battle area situations and the best course of action.

Of course, it also makes missiles like the M-6 that can perform anti-air warfare, anti-surface warfare, and advanced ballistic missile defense at sea.

If things really escalate, Raytheon also manufacturers the Tomahawk missile system that is every terrorist leader's nightmare. Tomahawks can be fired at land and sea targets from 1,000 miles away.

In the air, Raytheon makes the AMRAAM air-to-air missile that is used in F35 fighters. It also provides military aircraft with AESA radars that allow greater beam control and enables aircrews to track multiple targets.

It also makes the Storm Breaker a smart weapon that can autonomously detect and classify moving land-based and maritime targets in all weather conditions.

Ultimately, Raytheon is one of the most versatile and conflict-ready defense contractors out there. And the research it does offers great growth prospects for the future.

Tense diplomatic relations between the United States and China could draw attention to Raytheon's portfolio in the coming months and years.

China's senior foreign policy official, Yang Jiechi, said at a meeting back in April that China will "unswervingly defend its national sovereignty, security and development interests." Meanwhile, the U.S. military will be spending considerable sums of money on cyber defense and warfare and weapons systems and missiles.

A lot of that money will end up at Raytheon and help drive the stock price higher over time.