The geopolitical situation is intensifying following last week’s surprise takeout of a key Iranian military commander by President Donald Trump and the United States military. Tehran is threatening retaliation. Trump is calling for possible attacks on Iran’s cultural sites. Things are surely going to get worse before they get better.
Wall Street is growing increasingly nervous about a cycle of escalation that could disrupt global oil supplies, just to name one possible consequence. Gold and gold mining stocks have been a key area of strength amid the tensions. But other areas are perking up as well. Here are four defense stocks that are taking flight.
Defense Stocks to Buy: General Dynamics (GD)
Shares of General Dynamics (NYSE:GD) are bouncing once again off of critical support near its 200-day moving average, setting up a return to prior highs set back in September near $192 per share. Such a move would be worth a gain of 5% from here, adding to the 2.3% dividend yield the stock pays.
When the company next reports results, analysts are looking for earnings of $3.44 per share on revenues of $10.7 billion.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT) shares are blasting to new highs, exiting a multi-month consolidation range going back to September. The company pays a 2.5% dividend yield and continues to enjoy the benefits of the rollout of the F-35 Joint Strike Fighter program.
The company will next report results on Jan. 28. Analysts are looking for earnings of $5.01 per share on revenues of $15.3 billion.
Missile maker Raytheon (NYSE:RTN) is also breaking to new highs, pushing closer to the $230 level as it further stretches away from its 200-day moving average. The company pays a 1.7% dividend yield.
When the company next reports results, analysts are looking for earnings of $3.12 per share on revenues of $8 billion. The company was recently awarded a nearly $1 billion U.S. Air Force contract for missile production.
United Technologies (UTX)
Shares of United Technologies (NYSE:UTX) are pushing up and out of a two-month trading range in a push up and over prior highs set back in early 2018. The company pays a 2% dividend yield.
When the company next reports results, analysts are looking for earnings of $1.84 per share on revenues of $19.4 billion.
As of this writing, William Roth did not hold any of the aforementioned securities.