Why Lockheed Martin, Northrop Grumman, and Other Defense Stocks Gained Today
Key Points
Conflict in the Middle East is prompting people to reduce risk.
Defense companies can be safe havens during times of war.
Defense stocks climbed on Monday, as traders sought shelter in investments that could safeguard their wealth.
Here's how some of the leading defense contractors performed:
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
- Huntington Ingalls (NYSE: HII), up 2.1%
- General Dynamics (NYSE: GD), up 2.2%
- Lockheed Martin (NYSE: LMT), up 3.4%
- RTX (NYSE: RTX), up 4.7%
- Northrop Grumman (NYSE: NOC), up 6%
The F-35 Lightning. Image source: Lockheed Martin.
Conflict in the Middle East
The U.S. and Israeli militaries launched large-scale combat operations against Iran this weekend. U.S. President Donald Trump said the strikes, which are designed to prevent Iran from obtaining a nuclear weapon and reduce its offensive missile capabilities, could continue for four to five weeks -- and perhaps far longer.
U.S. and Israeli forces are expected to use an extensive array of ordnances during this time. Much of these armaments will need to be replenished in the months and years ahead.
These companies are leading suppliers to the U.S. Armed Forces
RTX produces many of the interceptors that defend U.S. forces and their allies from missile attacks.
Lockheed Martin oversees the production of numerous key systems, including the F-16 and F-35 fighter jets.
Huntington Ingalls and General Dynamics are the U.S. Navy's primary shipbuilders. They manufacture aircraft carriers, submarines, and other vessels.
Northrop Grumman is tasked with accelerating the production of the B-21 Raider, the U.S. Air Force's next-generation strategic deterrence aircraft.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends RTX. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.