If the world goes to hell in a handbasket, here are the profitable defense stocks you’ll wish you owned.
Fortifying Investment Choices Amidst Global Tensions
Choosing defense stocks in the current investment landscape can feel like navigating through a minefield. Economic uncertainties and geopolitical tensions pose threats that could potentially disrupt financial stability at any given moment.
From the looming specter of a skyrocketing national debt to the ominous clouds of conflict gathering over the Middle East and the perpetual shadow of terrorism, the world remains a volatile stage for investors.
Despite these challenges, defense stocks stand as beacons of stability, safeguarded by the unwavering demand for U.S. military technology in the face of adversities that plague the global arena.
Northrop Grumman Soars to New Heights
Northrop Grumman (NYSE:NOC), a titan in the aerospace and defense realm, reported a stellar performance in Q1 2024, raking in a remarkable $10.1 billion in sales, marking a resilient 9% year-over-year increase.
The company’s mastery in satellite fabrication and space technology has positioned it as a linchpin in critical missions like NASA’s Artemis program, showcasing its indispensable role in shaping the future of space exploration.
With new contracts, such as the collaborative venture with NATO to enhance maritime surveillance utilizing Triton aircraft, Northrop Grumman’s trajectory points skyward. Analysts foresee a lucrative path ahead, with potential gains waiting in the wings as NOC currently trades at 17.7x forward earnings and 1.6x sales, hinting at a promising 14% upswing on the horizon.
Lockheed Martin: Leading the Charge in Space Innovation
Emulating Northrop’s robust performance, Lockheed Martin (NYSE:LMT) maintains a strong foothold in the space industry, focusing on cutting-edge satellite technologies amidst escalating geopolitical tensions.
Financially sound, Lockheed reported $6.78 billion in net income over the past year alongside revenue figures scaling the heights of $69.64 billion. Projections for fiscal 2024 paint a promising future, with expected earnings per share of $26.27 and revenue climbing to $72.36 billion in 2025, bolstered by a stable 2.7% forward dividend yield.
The successful launch of Lockheed Martin’s advanced weather satellite, GOES-U, a pivotal cog in NOAA’s GOES-R series, exemplifies the company’s commitment to cutting-edge space technology and underscores its pivotal role in revolutionizing weather monitoring and forecasting over North America.
General Dynamics: Navigating a Sea of Success
General Dynamics (NYSE:GD), renowned for its expansive operations across aerospace, marine systems, combat systems, and technologies, boasts a commendable financial performance.
With revenue surging to $10.7 billion, marking an impressive 8.6% year-over-year increase, and net earnings soaring to $799 million, a robust 9.5% uptick, General Dynamics has showcased unwavering profitability.
Gulfstream Aerospace, a division of General Dynamics, obtaining FAA-type certification for its innovative Gulfstream G700, coupled with the burgeoning demand in Combat Systems and the flourishing Marine Systems segment driven by lucrative U.S. Navy contracts, cements the company’s core competencies.
General Dynamics’ enduring legacy of a 1.97% dividend yield, exemplified by 33 consecutive years of dividend growth, underscores its resilience and unwavering commitment to shareholder value in a volatile market landscape.