The War Stocks
The defense, biotech and construction companies that are leading the war effort.
From the Tomahawk cruise missile to the B-2 stealth bomber, war is big business. Of course, while government expenditures can seem staggering, the effect on the big defense contractors are muted. Most have commercial aviation businesses that are suffering. And all have seen their stock prices drop since bombing in Iraq began on March 19, continuing a slide that has left most near 52-week lows.Then there are the biotechs, racing to create vaccines and treatments to prepare for possible biological terrorism. But few have proven therapies and most are burning through cash. Finally, there are the rebuilders. When the war with Iraq ends, there will be roads to be reconstructed and an entire oil industry to be modernized. Projects will run into the billions of dollars. But guessing how that will translate into long-term earnings growth is tough. Here is a list of stocks that investors will no doubt be watching as war in Iraq and on terrorism intensifies. Performance is tracked since March 19. | Company (Ticker) | Mar 19
price | Current
price | Percent
change | 52-week
high | 52-week
low | Fwd
P/E* | What they're supplying | | Defense | | Alliant Techsystems(ATK) | $53.02 | $79.18 | 49.3% | $91.39 | $70.43 | 8.9 | Ammunition used in rifles and machine guns | | Boeing(BA) | $27.95 | $71.43 | 155.6% | $74.53 | $35.81 | 15.9 | Apache helicopters; Lancer jets | | General Dynamics(GD) | $58.42 | $76.89 | 31.6% | $78.96 | $43.11 | 11.0 | M-1 Abrams tank | | L-3 Communications(LLL) | $42.61 | $94.49 | 121.8% | $94.87 | $63.57 | 10.6 | Communications systems; reconnaissance and detection technology | | Lockheed Martin(LMT) | $48.30 | $82.78 | 71.4% | $87.19 | $67.39 | 10.6 | Nighthawk stealth fighters | | Northrop Grumman(NOC) | $87.45 | $65.91 | -24.6% | $66.69 | $42.51 | 9.8 | B-2 Spirit stealth bomber; Global Hawk spy plane, Tomcat fighter jets | | Raytheon(RTN) | $28.35 | $57.38 | 102.4% | $58.30 | $40.75 | 10.8 | Tomahawk cruise missiles | | United Technologies(UTX) | $61.80 | $73.38 | 18.7% | $74.97 | $45.17 | 13.8 | Black Hawk helicopter | | The Rebuilders | | Fluor(FLR) | $33.37 | $50.96 | 52.7% | $58.62 | $36.62 | 15.6 | Bidding on the biggest current USAID contract, worth up to $600 million, to rebuild Iraq's infrastructure | | Halliburton(HAL) | $20.50 | $31.34 | 52.9% | $34.87 | $16.40 | 14.7 | Dick Cheney's old company, it is a leading contender for contracts to build up oil infrastructure | | The Biotechs | | Baxter International(BAX) | $21.00 | $58.02 | 176.3% | $61.88 | $45.46 | 12.3 | With Acambis, is supplying 209 million doses of smallpox vaccine | | Human Genome Sciences(HGSI) | $8.75 | $34.25 | 291.4% | $33.25 | $0.87 | -179.7 | Its ABthrax to treat and prevent anthrax infection is being tested for safety and effectiveness | | Vaxgen(VXGN) | $3.45 | $0.42 | -87.8% | $1.00 | $0.30 | 0.1 | Developing vaccines for anthrax and smallpox | | Security |
Last updated Apr 13 10:01
Sources: Thomson/Baseline, Standard & Poor's
*Forward P/E based on earnings estimates for the current fiscal year. | FAQs
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- List of the Best War Stocks.
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Out of 8 analysts, 3 (37.5%) are recommending LMT as a Strong Buy, 0 (0%) are recommending LMT as a Buy, 5 (62.5%) are recommending LMT as a Hold, 0 (0%) are recommending LMT as a Sell, and 0 (0%) are recommending LMT as a Strong Sell.
What is the stock market doing today live? ›
US Markets
| SYMBOL | PRICE | CHANGE |
|---|
| DJIA | 38,798.99 | -87.18 |
| NASDAQ | 17,133.13 | -39.99 |
| S&P 500 | 5,346.99 | -5.97 |
| *GOLD | 2,311.1 | -79.8 |
4 more rowsA war reserve stock (WRS)/pre-positioned stocks (PPS), is a collection of warfighting materiel held in reserve in pre-positioned storage to be used if needed in wartime. They may be located strategically depending on where it is believed they will be needed.
Which stock will rise during war? ›
In general, defense stocks (companies that produce weapons and armaments) tend to fare the best during a wartime environment.
What is the best military stock to buy? ›
8 Best Defense Stocks to Buy Now
| Stock | Implied upside over June 3 close* |
|---|
| TransDigm Group Inc. (ticker: TDG) | 15.7% |
| Northrop Grumman Corp. (NOC) | 28.9% |
| L3Harris Technologies Inc. (LHX) | 22% |
| Howmet Aerospace Inc. (HWM) | 18.2% |
4 more rows6 days ago
State Street Global Advisors, Inc. is currently the largest shareholder, with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 9.2% of the stock.
Where will LMT stock be in 5 years? ›
Lockheed Martin stock price stood at $470.12
According to the latest long-term forecast, Lockheed Martin price will hit $500 by the end of 2024 and then $600 by the end of 2026. Lockheed Martin will rise to $700 within the year of 2028, $800 in 2029, $900 in 2030, $1000 in 2033 and $1100 in 2035.
Is LMT a dividend king? ›
Boasting over two decades of consecutive annual dividend increases, Lockheed Martin (NYSE:LMT) is a Dividend Aristocrat in the making.
Is now a good time to get into the stock market? ›
Stock prices have surged significantly over the past 18 months. The S&P 500 is up by 45% since it bottomed out in October 2022, while the tech-heavy Nasdaq has soared by a whopping 58% in that time. Investing now, then, means paying much higher prices than you would if you'd bought a year or two ago.
BTST Stocks for the Day
| STOCK | ACTION | SL |
|---|
| National Fertilizers Ltd. | BUY | 108 |
| Housing and Urban Development Corporation Ltd. | BUY | 247 |
| UPL Ltd. | BUY | 530 |
The S&P 500 generated an impressive 26.29% total return in 2023, rebounding from an 18.11% setback in 2022. Heading into 2024, investors are optimistic the same macroeconomic tailwinds that fueled the stock market's 2023 rally will propel the S&P 500 to new all-time highs in 2024.
What to invest in WW3? ›
Examples of investments benefiting from the war
- Companies benefited from the war, such as weapons companies, aircraft companies, etc.
- Companies that produce four-factor products such as food, water, medicines, etc.
- Oil companies Because oil are considered a commodity and prices tend to rise during the war.
The best recession stocks include consumer staples, utilities and healthcare companies, all of which produce goods and services that consumers can't do without, no matter how bad the economy gets.
Do stocks go up or down during war? ›
The study suggests that stock prices tend to decrease as the likelihood of war escalates during the prewar phase (no surprise there), but paradoxically, the outbreak of war causes them to increase. On the other hand, when a war begins unexpectedly with no intro, stock prices tend to decrease rather than increase.
What are the best commodities to invest in during war? ›
Energy Commodities: Fueling Wartime Needs
Energy commodities, particularly oil and natural gas, are critical resources for modern warfare and economic activities. Disruptions to energy supply lines can have severe consequences for both military operations and civilian industries.
What does WW3 mean for investors? ›
The brightest conclusion is that such odds really are close to zero. A darker one is that, like the investors of 1914, today's may soon be blindsided. History points to a third possibility: that even if investors expect a major war, there is little they can do to reliably profit from it.
Is there an ETF for defense stocks? ›
The iShares U.S. Aerospace & Defense ETF seeks to track the investment results of an index composed of U.S. equities in the aerospace and defense sector.
