Top 3 defense stocks to consider as the war in Ukraine rages
- European countries including Germany are increasing defense spending.
- It is likely that an arms race will come after the war in Ukraine.
- Defense companies are likely to see increased business in the coming months.
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The Russian invasion of Ukraine has captured the attention of the world. It is the first time a major conflict has been reported in Europe, and there is no clear sign it’s about to end soon. But for investors, this also means there are opportunities to make money through defense stocks.
Well, if you are keen on putting in some investments in the defense sector across the world, here are three stocks to consider:
BAE Systems (BAESY)
BAE Systems plc (LON:BA) is a British arms and aerospace company that is based in London. It is in fact the biggest defense contractor in Europe, serving the military needs of several countries, including the UK and others.
BAE Systems is also the biggest manufacturer in the UK, underscoring just how important its role is in European defense infrastructure. The BAE stock has been surging in recent days as well. As more countries in Europe increase defense spending, its long-term growth will be huge.
Rheinmetall AG (RHM)
Rheinmetall AG (LON:0NI1) is a German arms manufacturer that operates out of Dusseldorf. The company also specializes in the development of military vehicles, and its stock is available on the Frankfurt stock exchange under the ticker symbol RHM. In 2019, the company saw revenues of up to EUR 6 billion. It is likely going to be a key supplier of German armed forces in the years ahead.
General Dynamics Corporation
General Dynamics Corporation (NYSE:GD) is one of the leading US-based weapons manufacturers. The company is involved in the development of stealth fighters, air defense systems, cybersecurity, and so much more. In 2021, GD had revenues of nearly $38 billion.