To commence, defense stocks refer to the stocks of companies that primarily deal with the production and provision of military equipment and services to governments and military organizations. These companies engage in the development, manufacture, and supply of products such as weapons, ammunition, and defense electronics, as well as services such as military training and support. The demand for defense stocks tends to be influenced by geopolitical tensions, military conflicts, and government spending on defense.
Investors seeking stability and steady growth often turn to defense stocks. This is because government spending on defense is usually considered a necessity and tends to remain relatively stable even during economic downturns. Furthermore, defense contracts are usually multi-year and provide a predictable stream of revenue for these companies. Additionally, the growth of emerging technologies such as cybersecurity, unmanned aerial vehicles (UAVs), and autonomous systems can fuel further growth in the defense sector.
However, investing in defense stocks can also be a controversial issue. This comes as the production and use of military equipment can be seen as unethical and morally questionable. Moreover, changes in government policies and regulations, such as changes in U.S. foreign policy and international arms control agreements, can significantly impact the defense industry. As a result, it’s essential for investors to consider these factors and conduct thorough research before investing in defense stocks. If this has you interested in investing in the defense sector, here are two defense stocks to watch in the stock market today.
Defense Stocks To Buy [Or Avoid] In 2023
Boeing (BA Stock)
To start, The Boeing Company (BA) is a large aerospace and defense manufacturer. The company is known for producing some of the world’s most advanced and innovative aircraft. Today, Boeing is a major player in both commercial and military aircraft, as well as space exploration and satellite technology.
BA Recent Stock News
Just last month, Boeing announced its financial results for the quarter ending December 2022. In detail, the company reported a loss of $1.75 per share and had revenue of $20 billion. This is in comparison to the analyst consensus earnings of $0.05 per share and revenue of $20 billion. The revenue for this quarter showed a growth of 35.1% compared to the previous year.
Furthermore, Dave Calhoun, Boeing President, and CEO said, “We had a solid fourth quarter, and 2022 proved to be an important year in our recovery. Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond.“
BA Stock Chart
Looking at the last six months of trading action, Boeing stock has jumped by 24.75%. While, during Monday afternoon’s trading session, shares of BA stock are trading higher by 0.47% at $206.97 per share.
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Lockheed Martin (LMT Stock)
Second, Lockheed Martin Corporation (LMT) is a large aerospace and defense contractor with a broad portfolio of products and services. Over the years, Lockheed Martin has become one of the largest defense contractors in the world. In fact, the company offers a wide range of products and services. This includes fighter aircraft, submarines, space systems, and more.
LMT Recent Stock News
Late last month, Lockheed Martin declared a dividend of $3.00 per share for Q1 2023, as approved by its board of directors. The dividend payment will be payable on March 24, 2023, to stockholders on record as of March 1st, 2023. Moreover, this equates to an annual dividend yield of 2.59% for LMT shareholders.
LMT Stock Chart
In the last six months of trading, shares of LMT have increased by 9.41%. Meanwhile, during Monday afternoon’s trading session, LMT stock is up 1.06% on the day, trading at $463.93 a share.