3 Defense Stocks Poised to Keep Flourishing Amid Heightened Geopolitical Tensions
A few months after the outbreak of war in Ukraine, Sky News collaborated with the Stockholm International Peace Research Institute (SIPRI) to publish a report revealing the details of NATO States' deliveries to Ukraine. The report highlighted that Britain and the United States were the top suppliers of new weapons.
In the United States, RTX Corp (NYSE:RTX) and Lockheed Martin (NYSE:LMT) are major beneficiaries, providing Javelin-guided missiles, FIM-92 Stinger anti-aircraft sets, and GMLRS-guided surface-to-surface missiles. Now, over a year later, let's check how these companies are faring.
We'll also keep an eye on General Dynamics Corporation (NYSE:GD), as it is scheduled to release its quarterly results next week.
In the first half of 2023, RTX Corporation's stock (formerly Raytheon Technologies) has been going through a consolidation phase. Meanwhile, on the fundamental side, the defense company has received steady orders, including a recent confirmation from Defense Advanced Research Projects Agency (DARPA) to build HAWC systems, helping steady revenues. The company's chart shows consistent revenue and net profits, which have been maintained over the past two years.
Source: InvestingPro
Source: InvestingPro
Despite the recent deceleration, the company's stock price continues to follow an upward trend. Currently, the critical technical level to watch is around $93 per share. If the stock price breaks below this level, it could lead to a more significant correction, with a potential target near $82 per share.
If RTX Corp's upcoming results surpass expectations, it could significantly reduce the probability of a bearish scenario, and the stock may likely continue to consolidate.
Next week, we'll also see General
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