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.
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.
Wall Street sure is in love with Richard Branson and his pioneering space tourism firm.
And who could blame them? I can, for one.
Branson’s company looks good on paper, of course.
After all, by all accounts, Branson is charming, charismatic, and intelligent. He’s a renowned adventurer and successfully founded Virgin Atlantic, a respected airline
And when his space tourism company, Virgin Galactic Holdings Inc. (SPCE), went public in October 2019, it caused quite a stir as an early mover in a groundbreaking new industry estimated to be worth $20 billion by 2030.
But Wall Street has been silent on one key metric. SPCE has been a poor performer in a generally strong market.
Indeed, since hitting a peak on February 11, the stock is off roughly 62% while the S&P 500 gained a respectable 7.6%.
With that in mind, today I want to recommend that you not invest in SPCE.
Instead, I have identified a storied space leader that recently tripled the overall market’s return as it turned in a stellar earnings report last week.
Federal officials are now alleging – and they are almost certainly correct – that a team of Russian hackers penetrated as many as 250 corporate and government networks.
Known as SolarWinds, the hack is named after an Austin TX networking software firm. The breach may have affected some 18,000 SolarWinds Corp. clients around the U.S.
Ironically, the victims include some elite Silicon Valley leaders. We’re talking Cisco Systems Inc. (CSCO), Intel Corp. (INTC), and Nvidia Corp. (NVDA).
Now you know why the global cybersecurity market is set to grow by 151.5% over the next seven years to $281.7 billion.
Today, I will reveal a cyber firm whose privileged access tools are tailor-made for these kinds of events.
Let me show you why the firm is set to double earnings in as little as two years…
A few weeks back, an unknown burglar broke into my younger daughter Kendall’s apartment while she was sleeping in her bedroom.
I sure wish that she could have had the new security drone camera from smart-home firm Ring.
It’s set up to fly for security sweeps and then dock itself when not needed. As a dad who is a security freak, this sounds very appealing to me.
Unfortunately, the device won’t be available until early next year.
That said, it still shows you just how fast drone technology is moving in a market growing at 20.5% a year and headed to a value of $43 billion by 2024.
We’re seeing drones used for deliveries of goods and medical supplies, corporate and national security surveillance, and tactical deployments for soldiers.
Today, I want to show you a great pure play on the market.
If you just looked at the headlines, you’d think this is the absolute worst time to invest in anything related to nuclear power.
After all, Big Media has been giving us a steady diet of stories about the benefit to the planet found in green energy.
Don’t get me wrong. I have recommended solar and related stocks in the past. The issue confronting us is that right now we don’t have nearly enough large, industrial-grade storage systems for wind or solar power.
Which brings me back around to a company that is set to double its stock, not by avoiding nuclear power, but by gladly embracing it.
That’s a good thing because right now as we speak roughly 55 nuclear power plants are being built around the world. And just the equipment part of the sector is worth $67.2 billion.
We’ve just celebrated the one-year anniversary of one of the largest mergers ever to hit the defense industry.
As someone who has been around military technology since high school, I was and remain a big fan of this move.
And it’s not just because the combined firm had first-quarter sales that were up by a stunning 168%, though I believe it does prove the value of this move.
The merger created a firm with more than $16 billion in yearly sales and a $35 billion market cap.
Along the way, the linkup cemented the firm status’s an electronics-centric leader with a strong moat and that’s in a field vital to America’s security.
Mordor Intelligence projects the sector where this firm excels is going to grow 14% between now and 2024. And that’s on top of a current base worth $124 billion.
Over the past five years, the stock has nearly doubled the overall market’s return.
Imagine a 4-minute commute from Washington, DC to New York, a 230-mile journey.
Or, how about an hour’s journey between New York City and Zurich, Switzerland?
That’s how long it would take if you could travel at Mach 5, which is about 3,836 mph.
And this isn’t science-fiction; it’s science now!
It’s what has become known as hypersonic speed. And while it may not be available to commuters or vacationers – yet – it’s a top priority of US, Chinese, and Russian defense companies.
Make no mistake. Hypersonic technology is vital for America’s security. It also means big bucks for savvy tech investors.
In fact, I have identified a leader in this hot new field that is selling at a roughly 35% discount from the S&P 500.
Even better, it has a track record of beating that benchmark by 160%.
Ever since the market sold off back on February 19, I have given you a steady stream of tech winners who should at least be on your watchlist.
Here’s the thing. Most of those companies have been larger firms with stocks that have relatively high sticker prices.
And for good reason. When you’re in a bear market, you can often find big discounts on household names like Apple Inc. (AAPL).
But I would be remiss if I didn’t at least let you know from time to time about low priced small caps targeting Trump’s more than $700 billion defense budget.
Remember, what we want are well-run firms in multibillion-dollar markets with a lot of upside.
That’s just the set up I see in play for a tiny defense electronics firm that supplies the U.S. military with robust radar systems.
Just a little more than three months ago, we celebrated the 50th anniversary of one of the great technical achievements in the history of the human race.
It was on July 20, 1969 that Neil Armstrong became the first person to set foot on the moon.
And what could be a better way to celebrate that accomplishment than to follow that up with another lunar mission?
No, we’re not going to land there tomorrow or even next year for that matter. Fact is, the U.S. probably won’t return to the moon for another decade.
So, why am I celebrating already? Fair question. The answer: a storied space pioneer just received a huge order from NASA to build up to 12 Orion spacecraft.
Known as Artemis, the new lunar program could mean at least $4.6 billion in revenue for this aerospace leader, and massive payouts for you.
