Defense Stocks

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Best Defense Stocks

Defense stocks belong to the companies that are involved with the defense of the country. They mostly generate their revenues from government bodies like the Pentagon and other intelligence agencies. In addition to the companies that manufacture military equipment, small companies that provide the IT infrastructure and consulting and analytics services to the government also constitute defense stocks.

In recent times, the defense stocks have been rallying up. From 2014 to 2019, the SPADE Defense Index, the index for defense stocks, has doubled up. The defense stocks have benefited due to increased spending by the government on defense measures.

Ticker
Company Name
Last Price
1-Year Return
Market Cap
AAXNAxon Enterprise, Inc.#N/A#N/A#N/A
AIRAAR Corp.$45.1334.08%1.6B
AIRIAir Industries Group$0.72-44.19%23.1M
ASTCAstrotech Corporation$0.47-56.48%23.6M
ATROAstronics Corporation$11.02-22.01%348.7M
AVAVAeroVironment, Inc.$90.17-13.44%2.2B
BAThe Boeing Company$165.04-28.94%98.0B
BWXTBWX Technologies, Inc.$56.193.69%5.1B
CAECAE Inc.$26.74-13.46%8.5B
CODACoda Octopus Group, Inc.$4.91-45.38%53.7M
CVUCPI Aerostructures, Inc.$10.50-40.00%2.0B
DCODucommun Incorporated$45.62-14.51%549.0M
ERJEmbraer S.A.$10.34-28.29%9.9B
ESLTElbit Systems Ltd.$234.8676.53%10.2B
GDGeneral Dynamics Corporation$228.7615.98%62.7B
HEIHEICO Corporation$157.5221.98%18.9B
HIIHuntington Ingalls Industries, Inc.$227.5810.94%9.1B
HXLHexcel Corporation$61.6410.19%5.2B
ISSCInnovative Solutions and Support, Inc.$6.39-6.17%110.4M
KAMNKaman Corporation$31.67-25.59%886.0M
LMTLockheed Martin Corporation$426.4118.11%113.1B
NPKNational Presto Industries, Inc.$73.95-18.84%521.6M
RGRSturm, Ruger & Company, Inc.$58.42-29.50%1.0B
RTNRaytheon Company$49.09-58.19%375.6M
SPRSpirit AeroSystems Holdings, Inc.$30.40-26.75%3.2B
TATTTAT Technologies Ltd.$6.625.75%58.8M
TDGTransDigm Group Incorporated$638.301.56%34.9B
TGITriumph Group, Inc.$14.42-23.46%932.6M
WWDWoodward, Inc.$95.23-14.78%5.8B
AJRDAerojet Rocketdyne Holdings, Inc.$41.07-11.49%3.3B
MICTMICT, Inc.$0.66-64.13%85.5M
NOCNorthrop Grumman Corporation$477.5932.30%73.9B
RADARADA Electronic Industries Ltd.$10.43-12.35%518.5M
TXTTextron Inc.$64.40-10.85%13.6B

Factors to Consider Before Investing in Defense Stocks

Investors must consider that defense stocks function differently from other stocks. They belong to companies that cater exclusively to the government agencies, and their revenues and growth are directly correlated to government spending.

Thus, defense stocks are mostly unaffected by the movement in the stock market or the overall economy. Investors must understand government policies around purchasing before investing in defense stocks.

Additionally, investors must look at the fundamentals of the defense companies, including revenues, earnings, P/E ratios, and valuations. Even when the fundamental parameters are not up to the mark, investors should look at the reasons behind underperformance to find out the best opportunities to invest.

Which Defense Stocks Should I Buy?

Defense stocks perform and behave differently from the stocks of commercial companies. The number of defense stocks is limited as the sector has high barriers to entry. We have compiled a list of the top defense stocks for you to choose from.

Defense stocks are not suitable for all investors. One must invest in defense stocks only if they are comfortable putting their money into an unusual sector. Defense stocks are stable and generate high rewards; however, they are also affected by high profile risks of being involved with the top government agencies.