According to some analysts, defense industry is one of the areas which remained unaffected during the pandemic, that shook the entire world during 2020. Analysts are of the view that defense stocks are the best option to buy and reap benefits during 2021. The defense industry is one of the evergreen industries of the world due to mounting tension between different blocks and to maintain hegemony in the region and elsewhere in the world. The world order is changing swiftly, and the warfare techniques are evolving with the passage of time. The world is moving from conventional warfare tactics to high-tech and artificial intelligence-powered techniques. As per a report entitled United States of America’s Defense Budget Analysis – Competitive Landscape and Forecasts, published by ResearchAndMarkets, the defense of the US will rise to the US $716.2 billion during the ongoing fiscal. It is because the US President-elect Joe Biden is a staunch supporter to maintain US hegemony across the globe, specifically against China and Russia. In the backdrop of this assumption, it is likely that Biden will invest a considerable amount in the defense sector. So, it is possible that stock prices of major companies working on defense projects, ammunition, arms etc. will rise. This article provides information on Top 10 Best Defense Stocks To Buy as shared by Insider Monkey.
Northrop Grumman Corporation is one of the major global defense companies with over $33 billion annual revenue during 2019. This company is working closely on several strategic projects of the US government. Some of the key projects are orbiting observatory, which is scheduled to be launched during 2021, James Webb Space Telescope, and manufacturing of solid rocket boosters for the NASA-backed Space Launch System program. In September 2020, the company has been awarded a $13.3 billion contract for the development of a Ground-Based Strategic Deterrent intercontinental ballistic missile. Another prominent defense company is L3Harris Technologies Inc. This company came into being after the merger of 2 companies namely, L3 Technologies and Harris Corporation in mid-2019. L3Harris Technologies Inc. manufactures wireless equipment, tactical radios, C6ISR products and systems, electronic and avionics systems, surveillance, and night vision equipment solutions. In December 2020, the company won a contract to produce prototype tactical jamming pods for US soldiers. The company beat its own revenue estimates during third quarter of the ongoing fiscal year. To learn more, check out the information at 10 Best Defense Stocks To Buy For 2021.
