Defense stocks gained immense traction following Russia’s invasion of Ukraine last year. While the war drags on along with other geopolitical issues, it could be an opportune time to load up shares of fundamentally sound defensive companies such as Raytheon Technologies Corporation (RTX), Lockheed Martin Corporation (LMT), and Northrop Grumman Corporation (NOC) to your portfolio for substantial returns. Let’s look closer at their fundamentals and evaluate the potential of these stocks.
Earlier this month, President Biden released an $842 billion defense spending blueprint for the fiscal year 2024, with a 3.2% or $26 billion increase over current military spending levels. Designed to prioritize resources for critical investments enabling the department to continue implementing the National Defense Strategy, it should help defend against current and future threats.
