When we think of the more than $700 billion we spend on defense each year, we tend to focus on big-ticket items like fighter jets and battleships. But all those major weapons systems rely on a very lucrative sector that gets scant...
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A roughly one-hour drone flight can seem like a lifetime - especially for the leaders of Croatia, Hungary, and Romania, who recently had the unfortunate experience of witnessing an armed Russian drone fly over their countries. Thankfully, no one...
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For the first time in decades, many North Atlantic Treaty Organization (NATO) allies are set to increase military spending. Now, there's no doubt the United States' spending will continue to constitute the lion's share of the roughly $1 trillion...
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Ukraine's ability to thwart Russia's military advance has put a spotlight on a vital aspect of modern warfare - missile technology. Consider the horrific damage Ukraine's Javelin missiles had on Russia's military vehicles, where photos from the...
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By putting his nuclear forces on high alert February 28, Vladimir Putin turned the world upside down. It was the first time since the 1962 Cuban Missile Crisis that average Americans worried about the very real possibility of nuclear war. Same...
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This past January, I mentioned a defense stock that was on the verge of bottoming out at an incredibly attractive price.
A lot has happened since, of course – not least of all Russia’s invasion of Ukraine.
That’s given Wall Street a “wakeup call” and focused its attention on this stock, and the entire defense-tech sector. Famous names like Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC) are up 14% and 21%, respectively.
In fact, since I first recommended this stock, it’s soared nearly 11%, or more than three times the performance of the sluggish S&P 500.
Why am I talking about a stock that’s already seen healthy gains? Why, because I’m expecting a lot more in the near future, of course.
Here’s why I’m even more bullish on this defense company than I was this past winter…
Space pioneer and EV titan Elon Musk recently delivered a devastating blow to the Russian military – all without firing a single shot.
Instead, he provided something incredibly vital for the defense of Ukraine with advanced communications technology.
See, the Russians had hoped to accomplish what any modern invading army would want to do. Destroying or damaging vital communications facilities would keep Ukraine’s government from talking to the outside world.
To stop that from happening, Musk activated several of his SpaceX Starlink satellites over Ukraine. That allowed the nation’s government to relay vital information inside the beleaguered country and talk with the rest of the world.
That last part played a crucial role in getting information about Russian attacks to Western Europe and the U.S., and explains why the $66 billion satellite communications industry is growing at nearly 10% a year.
Of course, SpaceX is privately held. But don’t worry.
Lockheed Martin Corp.’s (LMT) proposed merger with Aerojet Rocketdyne Holdings Inc. (AJRD) was a huge deal that we’ve been excited about from the start.
Now, the Biden Administration’s FTC has sued to block the merger and Aerojet officially dropped it yesterday.
No doubt on paper, the firm’s decision to be bought for $4.4 billion by one of the great aerospace and defense giants made a lot of sense.
Faced with rising R&D and other costs, industry leaders have been making large mergers for the past 30 years.
And you might be wondering why I still recommend this strong defense giant.
Despite this deal falling through, Lockheed Martin has several great catalysts for its stock as Russian aggression is proving the need for a robust U.S. military and billions of dollars in government-approved funding.
Let me show you why these factors have helped this defense stock crush the broader market…
The Pentagon and the US defense industry recently scored a massive budget victory that has largely flown under the radar.
And what really makes it noteworthy is the fact that, in such a deeply divided nation, such a big increase in defense spending garnered amazing bipartisan support.
The roughly $778 billion defense authorization act cleared the House last month with a lopsided vote in which a stunning 360 members voted yes as opposed to 70 nos.
That’s a 5-to-1 ratio in favor of supporting the nation’s fighting forces and defense contractors.
And in the Senate, the measure was even more lopsided. It passed 88-to-11 for a 7-to-1 margin of victory.
The votes come as we see a growing realization that the US faces rising geopolitical and military threats for an ascendant China and Russia and must.
And I’ve identified a contractor that’s positioned to benefit from the 5% Pentagon budget increase that goes along with this new bill.
The firm more than doubled the market’s returns last year and has more upside ahead…
With our role as the world’s superpower on the line, you’d think the US military would have shunned investments from China.
The communist-run country clearly has global military ambition written all over it and is challenging the US military on a nearly everyday basis.
The world’s most populous nation is using its fishing fleet, by far the largest on Earth, as a maritime expansion force in the Pacific, Latin America, and Africa.
And as shocking as it may be to hear, between 2010 and 2019, Chinese investments in America’s military jumped a staggering 420%.
Now, America’s entrepreneurial geniuses are coming to the rescue. The Pentagon has quietly set aside $311 million for partnerships with venture capitalists and innovative small tech firms.