Best Aerospace & Defense Stocks Right Now

The post Best Aerospace & Defense Stocks Right Now by Chetan Shekar appeared first on Benzinga. Visit Benzinga to get more great content like this.

For a country to thrive, it must have a strong military force to fortify its borders and protect its civilians. You can also claim a stake in national security by investing in the stocks of aerospace and defense companies. Here’s a guide to the top-performing aerospace and defense stocks on the stock exchange.

Quick Look at the Best Aerospace and Defense Stocks:

• L3Harris Technologies, Inc.
• General Dynamics Corporation
• Northrop Grumman Corporation
• Huntington Ingalls Industries, Inc.
• Lockheed Martin Corporation

Best Aerospace and Defense Stocks:

You should consider investing in these stocks from the aerospace and defense sector. 

• L3Harris Technologies Inc. (NYSE: LHX)
• General Dynamics Corporation (NYSE: GD)
• Northrop Grumman Corporation (NYSE: NOC)
• Huntington Ingalls Industries Inc. (NYSE: HII)
• Lockheed Martin Corporation (NYSE: LMT)

If you’re interested in making smaller investments, be sure to view the daily updates on stocks under $5, stocks under $10 and stocks under $20. 

Overview: Aerospace and Defense Stocks

Companies from the aerospace and defense sector manufacture and sell aircraft, missile systems, navigation systems and other military weapons to enforce border security and protect national interests. 

Escalating geopolitical tensions among countries can fuel major growth in military requirements. You can make a worthwhile trade by investing in these stocks at the right time to reap good returns. 

Best Online Brokers for Aerospace and Defense Stock

An online broker lets you browse through hundreds of aerospace and defense stocks on the stock market. You can easily select stocks to invest in by comparing their metrics on a single screen. Take a look at some of the best online brokers to get you started. 

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Best For

Active and Global Traders

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get started securely through Interactive Brokers’s website

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Active and Global Traders

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Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

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Leveraged Trading

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get started securely through Plus500’s website

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Disclosure: 82% of retail accounts lose money

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Leveraged Trading

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments. 

Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.

Best For

• Traders looking for a smooth mobile experience

Pros

• Great mobile app
• Low spreads and commissions
• Unlimited demo account

Cons

• Only derivatives are available
• Not open to U.S. residents

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Trading Ideas

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get started securely through public.com’s website

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Trading Ideas

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Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

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Commission-Free Mobile Trading

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get started securely through Robinhood’s website

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Commission-Free Mobile Trading

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Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

Best For

Active Short Sellers

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get started securely through TradeZero’s website

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Active Short Sellers

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TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.

Best For

• Traders seeking high transparency and mobility in a stock trading program
• Those attracted to commission-free trades
• Those seeking a free version of a high-quality trading program

Pros

• 24/7 live customer support
• Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
• Mobile app allows users to access stocks and trade in real-time while on the go

Cons

• Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
• Mobile app could offer more features

Features to Look for in Aerospace and Defense Stock

1. EPS: The earnings per share (EPS) of company stocks will help you make informed investments. The EPS of a stock gives you a clear picture of how much profit you stand to make on each invested share. It is calculated by dividing the net income of the company by the total number of outstanding shares. 

2. Liquidity: It is better to invest in stocks that are frequently traded on a daily basis. A stock with high liquidity ensures that a good number of buyers and sellers are interested in the company and its price performance. 

3. Large capital funding: Aerospace and defense companies usually fund their projects by signing contracts with governing bodies worth millions, if not billions. An immediate effect of this type of funding is a major shift in the company’s stock value. 

Aerospace and Defense Stocks to Watch Out for This Year

Take a look at these aerospace and defense stocks that are gaining major traction in 2020.  

L3Harris Technologies Inc. 

L3Harris Technologies Inc. is a global aerospace and defense technology innovator. It provides end-to-end solutions across air, land, sea, space and cyber domains for governments and corporate clients. 

The company stock has an EPS of $7.89 and a price-earnings (P/E) ratio of 23.68. It is valued at a market capitalization of $40 billion and has an annual dividend yield of 1.79%. This company stock trades over 1.5 million shares per day. 

Recently, L3Harris Technologies made the news for winning a $500 million IDIQ contract with the U.S. Space Force for an anti-jam satellite communications modem. The company also announced that it will be issuing $100 million in payments to support its small-business suppliers and recover the regional economy.    

General Dynamics Corporation

General Dynamics Corp. offers a broad portfolio of innovative products and services in business aviation, combat vehicles, weapons systems and arsenal, IT, command, control, communications and computers, intelligence, surveillance and reconnaissance solutions, shipbuilding and ship repair. It is organized into 5 business groups that include aerospace, combat systems, information technology, mission systems and marine systems. 

General Dynamics has an annual dividend yield of 3.44% and a market capitalization of $35 billion. It has an EPS of $11.85 and a P/E ratio of 10.53. General Dynamics has high liquidity and trades over 1.9 million shares per day. 

The company announced that it was awarded a new $505 million contract by the National Oceanic and Atmospheric Administration (NOAA). Additionally, on February 14, 2020, General Dynamics’s all-new aircraft Gulfstream G700 completed its first flight.  

Northrop Grumman Corporation 

Northrop Grumman Corporation is a global security company. It provides products, systems and solutions in autonomous systems, C4ISR strike, logistics and modernization. It operates within 3 segments including aerospace systems, mission systems and technology services. 

This aerospace and defense stock has an EPS of $13.27 and a P/E ratio of 24.31. It has high liquidity with more than 1.1 million shares traded per day. Northrop Grumman has an annual dividend yield of 1.61% with a market cap of $53 billion.

In April of 2020, Northrop Grumman initiated talks with the U.S. Air Force to receive a massive $85 billion contract to develop its intercontinental ballistic missiles.

Huntington Ingalls Industries Inc. 

As America’s largest military shipbuilding company, Huntington Ingalls Industries supports national security missions around the globe with unmanned systems, defense and federal solutions, nuclear and environmental services and fleet sustainment.

Huntington Ingalls trades over 400,000 shares per day. It has an EPS of $13.27 and a P/E ratio of 13.56. Huntington Ingalls Industries has a market cap of $7 billion with an annual dividend yield of 2.22%.

The company’s shipbuilding division was awarded a contract worth a potential $107.9 million, by the Littoral Combat Ships (LCS) Planning Yard. The company will provide the LCS program with post-delivery lifecycle support, which includes fleet modernization program planning, design engineering and modeling and logistics support.

Lockheed Martin Corporation 

Lockheed Martin is a global security and aerospace company. It operates through 4 segments that include aeronautics, missiles and fire control, rotary and missile systems and space systems. 

The company stock has an EPS of $22.03 and a P/E ratio of 17.26. It is valued at a market capitalization of $106 billion with an annual dividend yield of 2.5%. The company stocks trade over 1.7 million shares per day. 

In recent news, Lockheed Martin has secured a $519 million contract to provide Spain with sensor and radar equipment for 5 frigates using its Aegis Combat System (ACS). Spain will obligate $90.7 million for the current fiscal year, with a combined 3% of the work coming out of Lockheed’s facilities in Washington, D.C. and Herndon, Virginia. Work on the contract is expected to be completed by April 2030.

Biggest Aerospace and Defense Movers of the Day

Take a look at the aerospace and defense stocks with the biggest price movements today. 

You can also check out the stocks with the biggest price movements before trading sessions open with these premarket movers. 

Protect Your Portfolio

Every nation wants to be equipped with the best-in-class weaponry to safeguard its citizens and allies. The military projects are undertaken by aerospace and defense companies to ensure these security measures. These projects may last from a few months to several years, giving your investments ample time to grow and mature. 

Looking for stocks by price? Check out our pages below.

• Stocks under $5 (Assumes price greater than $1)
• Stocks under $10 (Assumes price greater than $5)
• Stocks Under $20 ( Assumes price greater than $10)

Looking at stocks by industry? Review our other guides.

• Biotech Stocks
• Energy Stocks
• Gold Stocks
• Oil Stocks
• Semiconductor Stocks
• Solar Stocks 
• Utility Stocks

Don’t know where to start? Find a broker using Benzinga’s best brokerage guide.

The post Best Aerospace & Defense Stocks Right Now by Chetan Shekar appeared first on Benzinga. Visit Benzinga to get more great content like this.