With tensions rising between China, the United States and Russia - many investors are wondering what Stocks and ETFs they can invest in to hedge their risks. During times of war, the best stocks to invest in are related to large defence contractors in the United States who create weapons and benefit from US government military spending.
To help you sift through the best war stocks, we have listed 10 excellent choices below for you to consider.
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Lockheed Martin (LMT) – Best Defense Stock
Lockheed Martin is one of the world’s largest defense contractors and has been a beneficiary of increased military spending by the U.S. government. With a market cap of over $100 billion, Lockheed is best known for its fighter jets, including the F-22 Raptor and the F-35 Lightning II. The company also manufactures missiles, drones, satellites, and other high-tech equipment for the military.
Northrop Grumman (NOC) – Another Top Defense Stock
Northrop Grumman is another leading defense contractor that has benefited from higher military spending in recent years. The company has a market cap of nearly $60 billion and focuses on aerospace and defense products. Northrop’s portfolio includes the B-2 Spirit bomber, the Global Hawk drone, and the James Webb Space Telescope.
Raytheon (RTN) – A Missile Maker
Raytheon is a major player in the defense industry with a market cap of over $50 billion. The company specializes in missiles and other defense products. Some of its most well-known products include the Tomahawk cruise missile and the Patriot missile defense system.
General Dynamics (GD) – Another Solid Defense Stock
General Dynamics is another large defense contractor with a market cap of over $40 billion. The company manufactures a wide range of military products, including tanks, submarines, and jets. General Dynamics’ portfolio includes the F-16 Fighting Falcon and the Gulfstream business jet.
Boeing (BA) – A Diversified Aerospace Giant
Boeing is a massive aerospace and defense company with a market cap of over $200 billion. While Boeing is best known for its commercial airplanes, the company also has a significant military business. Boeing’s defense products include the AH-64 Apache helicopter and the KC-46 Pegasus tanker aircraft.
United Technologies (UTX) – A Conglomerate with Defense Companies
United Technologies is a large industrial conglomerate with a market cap of over $100 billion. The company operates in a number of different industries, including aerospace, building technologies, and industrial products. United Technologies’ aerospace businesses include Pratt & Whitney engines and Sikorsky helicopters.
Honeywell (HON) – A Diversified Industrial Conglomerate
Honeywell is another large industrial conglomerate with a market cap of over $80 billion. The company operates in a number of different industries, including aerospace, building technologies, and transportation systems. Honeywell’s aerospace businesses include turbochargers and avionics.
L3 Technologies (LLL) – A Leading Defense Electronics Company
L3 Technologies is a leading provider of defense electronics and other military products. The company has a market cap of over $15 billion and specializes in a number of different areas, including communications, surveillance, and navigation. L3 Technologies’ products include the Predator drones and the Global Hawk drone.
Huntington Ingalls Industries (HII) – One of the World’s Largest Shipbuilders
Huntington Ingalls Industries is one of the world’s largest shipbuilders and has a market cap of over $5 billion. The company specializes in the construction of military vessels, including aircraft carriers, submarines, and amphibious assault ships. Huntington Ingalls is also a leading provider of engineering services to the U.S. government.
Textron (TXT) – A Diversified Industrial Company
Textron is a large industrial conglomerate with a market cap of over $15 billion. The company operates in a number of different industries, including aerospace, industrial products, and finance. Textron’s aerospace businesses include Bell helicopters and Cessna aircraft.
Best Assets to buy during War
If you are interested in buying ETFs or broader asset classes during times of war, we have listed 10 alternatives to specific defense stocks.
- Gold
- Silver
- Oil
- Food
- Water
- Firearms
- Ammunition
- Generators
- Fuel
- Commodities
The Bottom Line
These are just a few of the many stocks that could benefit from higher military spending in the event of a war. While no one wants to see a war, these companies would be among the biggest beneficiaries.
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