The defense sector is well-positioned for future growth due to its innovation and adaptability, which leverage advanced technologies such as AI, cybersecurity, and autonomous systems. Moreover, the air defense industry is benefitting from rising geopolitical tensions, such as conflicts involving Israel-Hamas and Russia-Ukraine.
Given the industry’s growth prospects, fundamentally strong defense stocks Innovative Solutions and Support, Inc. (ISSC), General Dynamics Corporation (GD) and Elbit Systems Ltd. (ESLT) might be worth buying.
