Defense stocks
Defense stocks are shares of companies that provide products and services to the U.S. military or sanctioned governments for national security purposes. These companies are involved in various aspects of military operations, including:
Intelligence technology
Aerospace systems
Military vehicles and aircraft
Weaponry and munitions
Defense-related services
Key Characteristics of Defense Stocks
Defense stocks represent companies that provide products or services to military organizations or governments for national security purposes. These stocks have distinct features that make them unique in the investment landscape:
Revenue Stability
Long-term Contracts: Many defense companies operate under long-term government contracts, providing predictable cash flows and revenue stability over extended periods.
Dependence on Government Budgets: Their financial performance is closely tied to government defense budgets, which are often insulated from economic downturns.
Sensitivity to Geopolitical Events
Geopol…