Today, we’re revisiting the power of investing in defense stocks…
When global conflict strikes, it’s often a sure bet the U.S. will get involved. It’s a story so dependable that – as we’ve often said – defense contractors could just as easily be called “offense” contractors. With the White House likely raising its defense budget to more than $770 billion next year, and global tensions rising, these stocks are trending higher. Here’s a recent example…
General Dynamics (GD) is a $60 billion aerospace and defense contractor. The company sells everything from business jets to nuclear-powered submarines and battle tanks. For better or for worse, its tools of war are always in demand – and 2021 was no exception… Not only did its defense segments deliver record revenue and operating earnings, but General Dynamics maintained a strong backlog of $127.5 billion – which includes major contracts with the U.S. Navy and Army.
As you can see, GD shares have soared. They’re up more than 30% in the past year, recently hitting a new multiyear high. With Russia advancing on Ukraine, and the U.S.’s ongoing military spending, we can expect shares to head higher from here…
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Source: Daily Wealth’s Market Notes