In recent weeks, war stocks have come into increasing focus for investors. Given the recent geopolitical situation in Afghanistan, investors may be looking to gear up alongside the military, should conflict materialize.
Additionally, continued geopolitical concerns coming out of China in recent months have further increased investor interest in war stocks. President Joe Biden’s administration is currently battling China on everything from stock market oversight to issues around Taiwan Sovereignty. While none of these geopolitical issues have yet turned into a “shooting war,” cautious investors may want to hedge their portfolios by buying some defense stocks.
Picking the best defense stocks is a difficult task. Part of that is because there are quite a few to choose from. However, let’s discuss three defense stocks concerned investors may want to take a look at.
Top War Stocks to Consider Right Now
Lockheed Martin (NYSE:LMT) is among the largest defense contractors in the world. Additionally, this stock is one of the cheapest. Currently, Lockheed Martin trades at around 14 times trailing earnings.
Given the company’s F-35 production, hypersonic missiles and its massive Pentagon contracts, LMT stock is one of the top war stocks on many investors’ radars.
Boeing (NYSE:BA) is a defense player most folks don’t think about. That’s because Boeing’s core business is designing and developing commercial aircraft.
However, this company’s F/A-18 and F-15 fighter aircraft are also a big piece of Boeing’s revenue stream. Additionally, this company has been a key missile producer for the U.S. military in the past. Should conflict break out, Boeing stands as a key partner to the U.S. government to battle any threat.
Lastly, Raytheon Technologies (NYSE:RTX) is a behemoth in the defense sector. This company is the result of a merger between Raytheon and United Technologies in 2020. The combined business is focused on a range of defense-related activities, including the company’s Patriot missile defense system. Tomahawk missiles, radar systems and electronic warfare are among the other segments. Raytheon is known to be a leader among this peer group.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.