While growth stocks generate headlines and enjoy the limelight more often than not, they pose more risk as we are currently witnessing so far in 2022. The growth-heavy Nasdaq has been pulled down from its all-time highs during 2022, but investors should not lose hope.
Now could be the time for defensive stocks to shine, given that they offer much more stability during volatile market conditions. We will take a look at three stocks that have promising prospects for this year.
Defense wins titles
The following three stocks represent the cream of the crop with rising sales and all-around good performance.
Lockheed Martin (NYSE: LMT)
A security and aerospace juggernaut with four key segments: Aeronautics, Missiles and Fire control, Rotary and Mission Systems, and Space. High-tech weapons and defensive systems are not the only things the company is good at, the stock performed well, exploding in 2022 and trading right above 20-50-200-day Simple Moving Averages (SMAs).
Wall Street Analysts deem LMT a ‘Moderate Buy’ with an average price consensus of $457.87 a possible upside of 1.81%. Though the largest price target analysts have on the stock sits comfortably at $521. LMT has also been a solid dividend payer at 2.9% yield so keeping an eye on this one has numerous benefits.
AAR Corp (NYSE: AIR)
AAR is a diversified provider of products and services to the defense and general aviation industry. The customer base is dispersed worldwide and with the most recent Q3 performance the stock is on a very good trajectory.
Recently, the stock moved above its 20-50-200 SMAs and is performing really well showing that shrewd investors are rewarding their business performance.
Wall Street is also in agreement holding a ‘Moderate Buy’ on the stock with an average price of $57 which leaves another 11.92% to the upside. If the stock continues to sign new contracts and deliver goods to their service providers, this type of performance from the firm will be commonplace.
Raytheon Technologies (NYSE: RTX)
A defense and commercial aviation giant Raytheon is in a good position to benefit from the favorable trends in the near future. Recent stock performance is in line with this, where the stock is trading above its 20-50-200 SMAs. The resistance level above $104 dollars seems to be in danger as the stock will most likely fly past it.
Analysts have given a ‘Strong Buy’ on RTX with an average price consensus of $110.29 an 8.44% upside. The highest price sits at $124 and seems more likely by the day to hit the level as the stock performs and global trends tip in its favor.
All in all, when one part of the market is struggling there is always other places to put your hard-earned money to work. Growth stocks seem to be out of favor at the moment, but readers willing to dig deep and look at other sectors may find that the defensive sector stocks are right up their alley.
Solid business fundamentals, global headwinds, and great recent stock performance may help investors stay on dry land when the market buckles.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.