Summary: Defense industry companies present a diverse array of investment options with varying degrees of profit potential. To buy military stocks and capitalize on the steady growth of the defense sector, investors can register an account with a regulated stock online stock broker such as eToro.
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About military stocks
What are military stocks?
Since defense and military industries are rather vast and profitable, defense stocks can present investors with a colorful and diverse investment venue. By investing in military stocks, you can get exposure to companies engaged in:
- Weapons and ammunition production;
- Designing and development of military aircraft, spacecraft, submarines, naval vessels, etc.;
- Developing communication systems and radar tech;
- Producing armored vehicles and other ground-based combat equipment;
- Developing surveillance technologies and reconnaissance equipment;
- Etc.
Where to buy defense stocks
There are a multitude of online stock trading platforms designed to meet the requirements of a diverse range of investors. Consequently, it is essential to conduct comprehensive research and compare these platforms before you can find one that aligns with your investment goals and strategies.
Our go-to broker for military stocks stock investments eToro:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Top 6 military stocks to buy in 2024
Investing in military and defense stocks can be a solid investment strategy move for those looking for a stable and profitable investment. However, not all military stocks are created equal, so careful consideration of a number of factors is paramount. Below, we provide an overview of some of the best defense stocks based on market caps and current market trends.
Our top 6 military stocks to buy in 2024 include:
- Northrop Grumman (NYSE: NOC);
- General Dynamics (NYSE: GD);
- Leidos Holdings (NYSE: LDOS);
- RTX Corporation (NYSE: RTX);
- Rheinmetall (FWB: RHM.DE);
- Lockheed Martin (NYSE: LMT).
1. Northrop Grumman (NOC)
Northrop Grumman is a prominent aerospace and defense corporation renowned for its contributions to stealth bomber technology, although it boasts a substantial and diverse portfolio in related sectors. For example, the company plays an important role in the United States nuclear deterrence strategy known as the Nuclear Triad, which relies on intercontinental ballistic missiles (ICBMs), strategic bombers, and ballistic missile submarines.
In addition, the company is focused on developing new intelligence solutions used in aircraft and aerospace technologies as well as space exploration. Indeed, the company’s space systems division is particularly noteworthy. Namely,it has been involved in a number of space missions, as Northrop Grumman, for example, provided the Cygnus spacecraft to resupply the International Space Station and played a key role in the development of the James Webb Space Telescope.
Northrop Grumman stock price today
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2. General DYNAMICS (GD)
General Dynamics is one of the leading military shipbuilders, although its portfolio includes tanks and land vehicles, such as the Abrams tank line and Stryker combat vehicles, solidifying its position as both a marine and ground combat U.S. Army supplier.
In addition, General Dynamics has also established itself as a prominent company in the defense-focused IT and services sector, offering solutions in the realm of cybersecurity, intelligence, and logistics.
General Dynamics stock price today
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3. Leidos Holdings (LDOS)
Leidos Holdings is best known as a government information technology (IT) company, providing cybersecurity solutions to the U.S. Department of Defense and other government agencies.
However, it has diversified into hardware as well, now furnishing electronics and control systems for naval vessels in addition to its cybersecurity, data analysis, and software solutions. In addition, the company does research in satellite technology, space exploration, and intelligence-gathering systems.
Leidos Holdings stock price today
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4. RTX Corporation (RTX)
RTX Corporation — formerly Raytheon Technologies — is known for playing a crucial role in supporting various essential military platforms developed by other contractors. However, the company itself also contributes to advanced military technology. Namely, its United Technologies branch specializes in manufacturing aircraft engines and a wide array of aerospace components, while Raytheon puts a large emphasis on developing defense electronics and missile systems, including the Patriot missile system and the Standard Missile-3.
In addition to its missile defense capabilities, RTX Corporation’s portfolio includes jet engines and other aerospace technologies used in commercial aircraft, ensuring it has a strong presence in the wider aerospace market.
RTX Corporation stock price today
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5. Rheinmetall (RHM.D)
Rheinmetall is a German arms manufacturer with over a century of market presence. The company is involved in the development and manufacturing of automotive components and defense equipment. More specifically, it works on building and producing vehicles, infantry equipment, ammunition, weapon systems (e.g., air defense systems), function sequence networking, etc.
Moreover, the company has a strong track record of winning government contracts, and it has a number of ongoing contracts with several governments around the world.
Rheinmetall stock price today
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6. Lockheed Martin (LMT)
Lockheed Martin is a prominent company not only in the defense but also the aerospace sector. Its portfolio features an extensive array of offerings, including aircraft, missiles, and satellites known for their cutting-edge technology, crucial contributions to national security, and the advancement in scientific exploration. Thus, Lockheed Martin’s well-earned reputation as one of the pioneers in the industry, coupled with its significant role as a major government contractor, makes its stock an appealing investment opportunity for those looking to invest in defense stocks.
Lockheed Martin stock price today
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How to buy military stocks safely
Investing in military stocks can be a great way to diversify your portfolio and ensure some steady income. However, like any investment, it comes with risks. To buy military stocks safely, be sure you avoid some of the most common investing mistakes and:
- Do your research: Before investing in a defense stock, it is important that you do your own research. Look at the companies and assess their financials, earnings reports, and leadership. You should also consider the company’s history, specifically past legal controversies;
- Diversify: It is important to diversify your portfolio. That means investing in a variety of assets instead of relying on a single stock to carry you to success. By diversifying, you can reduce your risk and increase your chances of higher returns;
- Consider dividends: Some military stocks offer dividends, which can provide a steady stream of passive income. However, not all military stocks are like that, and those that do offer dividends may not always distribute them consistently;
- Be ready for a recession: Defense stocks can be affected by a recession, so always have a plan B ready. That may include diversifying your portfolio or simply holding onto your investments and waiting for the market to recover.
Pros and cons of investing in military stocks
Pros
- Steady demand: Military and defense products tend to enjoy a stable demand as governments around the world prioritize defense budgets;
- Government contracts: Major military companies have contracts with governments, meaning they have a predictable source of income;
- Dividends: Some defense companies pay attractive dividends.
Cons
- Highly sensitive to geopolitical developments: While many investors are interested in defense stocks because they often generate steady revenue streams, it must be noted that these stocks can be influenced by geopolitical events and government spending decisions more than any other stocks. Consequently, investing in military stocks usually makes it mandatory for all investors to go the extra mile when researching companies they would like to invest in.
- Potential moral concerns: Moreover, investing in defense stocks necessarily brings about some ethical considerations. That is, some investors may morally object to profiting from companies that contribute to war efforts.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about the top 6 military stocks to buy in 2024
How do military stocks differ from regular stocks?
Since military stocks are shares in companies that operate within the defense sector, they may be subject to additional government regulations and be more sensitive to geopolitical events.
How do you evaluate military stocks?
You can evaluate military stocks by looking at company earnings, dividends, and free cash flow.
How do I buy defense stocks?
To buy defense stocks, you can register an account at a regulated online stock broker such as eToro.
What are the top 6 military stocks to buy in 2024?
Our top 6 military stocks to buy in 2024 include Northrop Grumman (NYSE: NOC), General Dynamics (NYSE: GD), Leidos Holdings (NYSE: LDOS), RTX Corporation (NYSE: RTX), Rheinmetall (FWB: RHM.DE), and Lockheed Martin (NYSE: LMT).
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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