Why Defense Stocks Rocketed Higher in February
Russia's invasion of Ukraine has sparked fears that the Cold War is going to heat up again, and that means more defense spending. Defense stocks have been moving higher as a result.
Aerovironment (NASDAQ: AVAV) shares gained 24.8% in February, according to data provided by S&P Global Market Intelligence, and shares of L3Harris Technologies (NYSE: LHX), Northrop Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT) were up 19.5% and 11.5%, respectively.
We don't yet know what will become of Russia's incursion into Ukraine but can pretty safely assume nothing good will come from it. The base case for buying defense stocks is that the world is a dangerous place, and investors got a sobering reminder of the danger in February.
Source Fool.com
