The aerospace & defense industry doesn’t always receive enough investors’ attention as it doesn’t usually portray growth prospects as solid as that of the tech and other high growth industries. However, considering the current market volatility, on concerns over looming interest rate hikes to control inflation, defense stocks could provide the stability investors’ are looking for, thanks to long-term contracts of these companies with the government.
Moreover, the planned procurement of advanced military equipment to replace the aging equipment currently in service and technological advances are expected to accelerate the growth of the defense sector. According to a Mordor Intelligence report, the U.S. aerospace and defense market is expected to grow at a CAGR of around 2.4% by 2030.
