The defense sector represents a crucial segment of the global economy, driven by the continuous demand for military equipment, advanced aerospace technology, cybersecurity solutions, and related services that ensure national security. This sector comprises companies involved in the research, development, production, and servicing of military hardware and systems.
Recent geopolitical events, such as the Israel-Hamas conflict, have spotlighted the ever-present need for advanced defense solutions and heightened the global attention towards security measures. Defense stocks represent the publicly traded firms within this sector, often serving not only government contracts but diversifying their offerings for commercial and international markets.
Investing in defense stocks can be seen as a strategic move, especially in the wake of such international conflicts which can act as catalysts, driving demand for defense products. The long-term nature of government contracts can provide a stable revenue stream for these companies. However, as with all investments, it’s essential to research and understand the unique dynamics of the defense industry, including geopolitical tensions, global military spending trends, and technological advancements. These factors can heavily influence the growth potential and profitability of companies within this sector, making it vital for investors to stay informed and discerning. With that being said, here are three defense stocks to watch in the stock market today.
Defense Stocks To Buy [Or Avoid] Today
- General Dynamics Corporation (NYSE: GD)
- RTX Corporation (NYSE: RTX)
- Lockheed Martin Corporation (NYSE: LMT)
General Dynamics (GD Stock)
Starting off, General Dynamics Corporation (GD) is a global aerospace and defense company that offers a wide range of products and services in business aviation, combat vehicles, weapons systems, and munitions. Its diverse portfolio allows it to cater to both military and commercial sectors globally.
Back in late July, General Dynamics reported a beat for its second quarter 2023 financial results. Diving in, the company notched in earnings of $2.70 per share, along with revenue of $10.15 billion for Q2 2023. This is versus Wall Street’s consensus estimates for the quarter which were an EPS of $2.59 and revenue estimates of $9.46 billion. As a result, revenue increased by 10.48% on a year-over-year basis.
In the last month of trading, shares of GD stock have gained by 10.27%. Meanwhile, during Tuesday morning’s premarket trading action, General Dynamic’s stock is trading higher by 1.35% at $241.69 a share.
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RTX Corporation (RTX Stock)
Second, RTX Corporation (RTX), previously known as Raytheon Technologies, is an industrial leader specializing in advanced aerospace and defense systems, with a focus on innovative technologies that address some of the world’s most complex challenges.
Earlier this month, RTX announced the day and time it will report its third quarter 2023 financial results. Specifically, the company reported that it will release its Q3 2023 results on Tuesday, October 24, 2023, ahead of the U.S. stock market opening.
Looking at the last month of trading, shares of RTX have dropped 5.08%. Though, as of Monday’s closing bell, RTX Corp stock closed the day up 4.62%. Additionally, during Tuesday morning’s premarket trading session, RTX stock is trading higher by 1.03% at $73.74 a share.
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Lockheed Martin (LMT Stock)
Last but not least, Lockheed Martin Corporation (LMT) stands as a global leader in the defense sector, primarily engaged in the research, design, development, and production of advanced technology systems, products, and services, including its renowned fighter jets and missile systems.
Just last week, Lockheed Martin announced it has declared its fourth quarter 2023 dividend. Diving in, the company reported that its Board of Directors has authorized its Q4 2023 dividend of $3.15 per share. Additionally, the dividend is payable on December 29, 2023, to shareholders of record on December 1, 2023. For context, this is the 21st consecutive year Lockheed Martin has increased its dividend.
Moreover, in the last month of trading, shares of LMT stock have begun to rebound by 3.77%. While, during Tuesday’s premarket trading session, Lockheed Martin stock is trading higher by 1.25% at $442.00 per share.