The 2 Best Defense Stocks to Buy Are Cashing In on $750 Billion in Pentagon Spending

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With Brexit, an inverted yield curve, and the U.S. yet to strike a trade deal with China, investors are uncertain about the direction of the global economy. But the best defense stocks to buy can help some investors make the most of these circumstances.

The defense industry is always in demand no matter what, and it’s even more valuable in times like these. That’s why we’re bringing you two of the best defense stocks to buy right now.×220.jpg 300w,×130.jpg 178w,×55.jpg 75w” sizes=”(max-width: 330px) 100vw, 330px” title=”” />

The U.S. government is prepared to ramp up defense spending in the 2020 budget. U.S. President Donald Trump’s recent proposal called for a defense budget of $750 billion. That would be a $34 billion increase from the previous year.

That’s why there are few better places to invest than in the companies that sell to the Pentagon.

We found the best defense stocks to buy with the Money Morning Stock VQScore™, a proprietary system that tells us which stocks are poised to break out in the next 12 months.

The first on our list not only pays a solid dividend – good for investing in volatile times – but also has a perfect 4.75 VQScore.

And it could be on the verge of a breakout…

Defense Stock to Buy, No. 2: Lockheed Martin Corp.

The VQScore system gives Lockheed Martin Corp. (NYSE: LMT) a perfect score of 4.75. This defense stock is a staple of the U.S. defense industry, and it’s the company behind the F-35 program. Tens of billions of dollars are pouring into fighter jets right now, especially the Lockheed F-35 and Boeing’s F-15EX.

And right now, Lockheed is winning the competition.

While the Pentagon plans to buy eight F-15 Boeing jets, it plans to buy another 78 F-35s next year for $11.2 billion.

Must See: The Defense Industry Is a Gold Mine – You Can’t Afford to Miss This $6 Company…

The stock could get a boost once Congress authorizes the request, and politicians are always reluctant to vote against security.

Plus, Lockheed Martin has a solid balance sheet, so there is no need to worry about corporate debt or a sharp exodus of investor capital. The firm also pays a dividend yield of 2.94%, which is a sign the company likes to reward shareholders.

But the best part of the stock is its upside. Wall Street’s average price target is $340, which represents about 16% upside from today’s $294.22. However, expectations should be more in line with those of Buckingham Research, which projects a target of $305 per share, a potential 38% gain in 12 months.

With a perfect VQScore, a booming U.S. defense budget, and plenty of projects in the pipeline, Lockheed is one of the best defense stocks to own right now.

But our top defense stock to buy now is even better positioned.

Not only does it have a perfect VQScore, but it’s getting a huge catalyst this year.

This company builds 70% of the U.S. navy’s ships, and the navy is going on a massive $28.9 billion binge this year…

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