It’s no secret that since the start of the Biden administration 2020, America’s involvement in foreign wars has increased. Whether through funding or covert operations, America is once more active on the global stage as a supplier and supporter of foreign wars. Whatever your perspectives on this might be, it does lend itself to a lucrative military-industrial complex. As such, investors may want to consider which defense stocks to buy in the event of four more years of the Biden administration.

The companies selected for this discussion are those actively producing weapons and materials for the current major wars in Ukraine and Israel. They are also companies that have actively funded and supported the Biden campaign, and are likely to receive preferential treatment in the event of his reelection. Thus, these are three defense stocks to buy should the Democrats win reelection in the presidency, and continue their foreign policy of supporting long-term wars.

BAE Systems (BAESY)

Should the war in Ukraine continue to drag on, BAE Systems (OTCMKTS:BAESY) is likely one of the biggest beneficiaries due to the multitude of technologies it supplies to the Ukrainian army through Western aid packages. Two prominent examples are the M2 Bradley infantry fighting vehicle and the M777 howitzer, both of which have been considered instrumental tools for the Ukrainians in their war against Russia.

In fact, since the start of the war in February 2022, BAE Systems has seen its stock soar by 49%. Thanks to the demand generated by an active war for its artillery systems and armored vehicles, BAE currently retains the investor favor that has led to its successful run in the market over the past two years. This would make it one of the defense stocks to buy in the event of a second Biden administration, as it would likely prolong the war.

Lockheed Martin (LMT)

As the producer of one of the most famous weapons of the current Russo-Ukrainian war, Lockheed Martin (NYSE:LMT) stands to gain a lot more revenue generation should Biden win a second term and prolong the war in Ukraine. That’s because LMT is the primary producer of the Javelin antitank missile system. With this weapon being considered so instrumental to the war in Ukraine, it’s practically guaranteed that LMT will fulfill its current contract to supply even more missiles and launchers to the Ukrainian army.

Beyond this weapon system, Lockheed Martin also stands to gain from Biden’s strong willingness to supply NATO with the F-35, and the necessary components to keep them running. This multi-million dollar aircraft is one of Lockheed Martin’s biggest revenue drivers of the 21st century. Thus, should Biden win the coming presidential election, LMT remains as one of the best defense stocks to buy.

Northrop Grumman (NOC)

One of the top five defense contractors in the world Northrop Grumman (NYSE:NOC) currently has a critical contract with its new B-21 raider bomber which is likely to maintain its funding status, so long as the current government stays in power. Thus, a Biden victory would likely result in a more willing spending environment that would continue to raise the national debt in order to cover many of Northrop Grumman’s major programs.

Moreover, the company recently became the first U.S. weapons manufacturer to strike a deal with the Ukrainian government to produce medium-caliber ammunition for things like autocannons and Gatling guns to aid Ukraine in its war effort.

If Biden wins the presidency again, this deal will likely be even more lucrative for the company as the Ukrainian government and surrounding nations are likely to become a long-time customer. This, paired with NOC’s successes in the space sector through its International Space Station refueling program and reconnaissance satellites, makes it one of the best defense stocks to buy in the case of an interventionist executive.

On the date of publication, Viktor Zarev 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.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.