3 Dominant Defense Stocks to Buy in 2022 and Beyond
Protecting the sovereignty of a nation isn't something that happens by itself; countries need to have the machinery and technology to actually defend themselves. Like it or not, that means buying the weapons and services provided by defense companies. With world peace nowhere on the horizon, investors looking for long-term investments will probably like giant defense names such as Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and General Dynamics (NYSE: GD). Here's a quick look at each company and the subtle but important differences between them.
Lockheed Martin, with a $95 billion market cap, is one of the largest aerospace and defense companies on the planet. It has four main divisions: aeronautics (about 40% of sales), rotary and mission systems (25%), space (18%), and missiles and fire control (17%). It has its fingers in just about every aspect of the defense sector, playing key roles in major long-term projects like the F-35 Joint Strike Fighter, Patriot Missiles, and Trident II Ballistic Missiles. These are massive government programs that have very long lives, and are just a small sample of the products and services that Lockheed Martin offers. But the really exciting thing here is that they support a nearly $135 billion backlog of work. And that helps create a clear path for future profits.
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Source Fool.com
