Growing concerns about geopolitical instability have brought defense stocks into the limelight. The militant organization Hamas’ attack on Israel has heightened the need for countries to shore up their military capabilities. In the wake of the geopolitical tensions, countries are highly likely to ramp up their defense spending. Therefore, defense companies will stand to gain.
Amid this backdrop, it could be prudent to buy fundamentally strong defense stocks Brady Corporation (BRC), Huntington Ingalls Industries, Inc. (HII), and Cadre Holdings, Inc. (CDRE). These stocks are rated A (Strong Buy) in our proprietary POWR Ratings system.
