These defense stocks have a great deal going for them

Keep your sights on these names, but wait for a meaningful price drop before pulling the trigger.

Vikram Barhat 21 March, 2018 | 5:00PM
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Geopolitical tensions, growing counterterrorism efforts and increased spending by the U.S. Department of Defense are creating a tailwind for revenue growth for leading U.S. arms producers.

Last year was a record year for aerospace and defence deals. And if industry statistics so far this year are any indication, it could be another bumper year for arms dealers in the U.S., the world's biggest exporter of military products and services.

The U.S. supplies to more than 100 countries and accounts for more than a third of all arms exports, according to the Stockholm International Peace Research Institute (SIPRI). U.S. arms exports increased 25% over the five years to 2017, far surpassing its nearest rival Russia, which saw a 7.1% decline in its arms sale, according to a recent SIPRI report.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
General Dynamics Corp188.97 USD-2.81Rating
Lockheed Martin Corp333.32 USD-1.51Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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