The United States and other governments around the world are prioritizing military modernization, building up their capacity for nuclear deterrence, enhancing missile defense capabilities, and generally investing heavily in defense. A move toward a more militarized world may mean investors can capitalize on both larger defense giants and smaller companies with the potential for major growth.
When seeking significant return potential in defense, investors may want to look for firms with a unique technological niche and a distinct position within the defense supply chain, as well as significant operational updates or other signs of business momentum. BWX Technologies Inc. (NYSE: BWXT), Mercury Systems Inc. (NASDAQ: MRCY), and Howmet Aerospace Inc. (NYSE: HWM) may all be appealing candidates for these reasons.
