3 Top Defense Stocks to Consider Buying Now
It has been a fantastic year for defense stocks, as the promise of a post-election pickup in Pentagon spending coupled with increasing threats from North Korea and elsewhere has caused investors to bid up shares, in some cases, by as much as 30% year to date. It's tough to find value in the sector today, but investors with a long-term horizon could still benefit from buying into General Dynamics (NYSE: GD), Huntington Ingalls Industries (NYSE: HII), and Leidos Holdings (NYSE: LDOS).
The logic behind the rally was sound, with the Trump administration and Congress in agreement over the need to refresh a range of key Pentagon weapons systems -- which should bring billions to the coffers of companies like GD, Huntington, Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), Raytheon (NYSE: RTN), and L3 Technologies, while also benefiting government services firms including Leidos, ManTech International, and CACI International.
A Lockheed Martin Terminal High Altitude Area Defense (THAAD) launch. Image source: Lockheed Martin.
Source: Fool.com
General Dynamics Corp. Stock
General Dynamics Corp. is currently one of the favorites of our community with 20 Buy predictions and no Sell predictions.
With a target price of 277 € there is a slightly positive potential of 2.95% for General Dynamics Corp. compared to the current price of 269.05 €.
