The defense sector plays a critical role in global stability, encompassing companies that provide military equipment, armaments, and related services. It includes giants such as Lockheed Martin (NYSE: LMT) and Boeing (NYSE: BA). These companies work closely with governments worldwide, ensuring they have the necessary tools for national security. The sector also involves research, development, and manufacturing of advanced technology for defense purposes.
Investing in defense stocks can offer stability, especially in turbulent economic times. This is because defense contracts tend to be long-term and backed by government funding. However, the sector is not without its controversies and ethical considerations. Investors need to be mindful of these aspects when considering defense stocks.
To successfully invest in defense stocks, one should stay updated on geopolitical events and government budgets. These factors significantly impact the sector’s performance. A well-diversified portfolio can help mitigate risks associated with this industry. It’s also beneficial to understand the cyclical nature of defense spending and how it correlates with global tensions and conflicts. If this has you keen on investing in the defense sector, here are two defense stocks to watch in the stock market right now.
Defense Stocks To Watch In November 2023
Northrop Grumman Corp. (NOC Stock)
To begin, Northrop Grumman Corporation (NOC) is an American aerospace and defense company. The company is a leader in the development and production of advanced military systems. Their diverse product range includes unmanned aircraft, cybersecurity solutions, and missile defense systems.
Last week, Northrop Grumman announced better-than-anticipated third quarter 2023 financial results. Getting right into it, the company reported earnings of $6.18 per share, with revenue of $9.78 billion. This is compared to analysts’ consensus estimates for the quarter which were earnings per share of $5.81 on revenue of $9.68 billion. Additionally, revenue increased by 8.96% versus the same period, the previous year.
Looking at the last month of trading action, shares of NOC stock have advanced by 5.29%. Meanwhile, during Tuesday’s late-morning trading session, Northrop Grumman Corp stock is trading slightly lower by 0.63% at $465.62 a share.
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General Dynamics Corp. (GD Stock)
Second, General Dynamics Corporation (GD) is a global aerospace and defense company. General Dynamics has evolved into a multinational entity, providing a wide array of military hardware, including submarines, armored vehicles, and information technology solutions.
Also last week, General Dynamics reported a beat for its third quarter 2023 financial results. Diving in, the company posted an EPS of $3.04, with revenue of $10.57 billion. For context, this is compared to Wall Street’s consensus estimates which were earnings of $2.87 per share, and revenue estimates of $9.89 billion for Q3 2023. Moreover, revenue increased by 5.97% versus the same period, the prior year.
In the last month of trading action, shares of GD stock are up by 7.50%. While, during Tuesday’s late-morning trading session, General Dynamics stock is trading modestly higher by 0.29% at $239.64 a share.