The increasing geopolitical tensions across the globe have emphasized the necessity of sustaining a strong defense. Instances such as the recent missile strike orchestrated by rebels supported by Iran, the ongoing conflict between Israel and Palestinians, and the war between Russia and Ukraine serve as notable examples of the heightened tensions compelling nations to boost their spending on defense.
Given the industry’s long-term growth prospects, it could be wise to buy fundamentally strong defense stocks Northrop Grumman Corporation (NOC) and MSA Safety Incorporated (MSA). However, not all defense stocks are likely to benefit from the industry tailwinds. Rocket Lab USA, Inc.’s (RKLB) poor fundamentals and growth prospects make it best avoided now.
