Global stocks declined sharply on Thursday as investors reacted to the new crisis in Europe. Futures tied to the Dow Jones and Nasdaq 100 indices have continued their downward trend. Still, some military industrial complex stocks could do well if the crisis escalates. So, here are some of the top defense stocks to consider.
Lockheed Martin (NYSE: LMT) is a major defense contractor valued at more than $105 billion and has annual revenues of over $67 billion. The company manufactures most items that are used in wars. Some of its top products are radar systems, military planes and helicopters, and autonomous vehicles among others.
Lockheed Martin stock price rose by more than 3% in premarket trading as investors expect that it will benefit from the ongoing crisis. Other reasons you might consider Lockheed are that its business is highly profitable and that it has long-term contracts with the US military. Its annual profit has jumped from about $1.9 billion in 2017 to over $6 billion in 2021.
Raytheon Technologies (NYSE: RTX) is another military industrial complex stock that you may consider eying. It is a large conglomerate valued at over $12338 billion.
Raytheon operates in a number of areas in the defense food chain. The company’s key segments are Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles and Defense.
It builds military aircraft engines, sensors, and radars among others. As a result, like Lockheed Martin, the company’s business has been doing well. Its revenue has risen to over $64 billion while its net income is about $3 billion. Therefore, the Raytheon stock price will likely do well if the crisis escalates.
Northrop Grumman (NYSE: NOC) is a major military industrial complex stock that could do well as the Russian-Ukraine crisis continues. It is a diversified group that is valued at over $60 billion. It has a dividend yield of 1.61%.
The Northrop Grumman stock price surged by more than 8% in premarket trading as investors anticipate more demand for its products. Its solutions are categorized into Defense systems, mission systems, aeronautics systems, and space systems. The firm’s services include aircraft and surveillance products that could be useful in Ukraine.
L3Harris Technologies (NYSE: LHX) is a $50 billion company in the military industrial complex. It operates in three key segments: Integrated Mission Systems, Space and Airborne Systems, and Communication Systems. Some of its solutions are on command and control, electronic warfare, and training and simulations. The stock will likely do well as the crisis escalates.
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