Is It Safe to Invest in Defense Stocks Again?

It's been a confusing period for defense companies. While the end-market environment appears conducive to revenue growth, many of the leading defense contractors have notably underperformed the market.That said, three leading defense companies, Lockheed Martin (NYSE: LMT) and the defense businesses of GE Aerospace (NYSE: GE) and RTX (NYSE: RTX), raised their full-year guidance recently. Is this a sign that the defense industry has turned the corner?The chart below shows the underperformance of some of the leading defense contractors in recent years, with RTX arguably being the only outperformer due to its commercial aerospace exposure. It's somewhat surprising given NATO's expansion and the commitment by NATO countries to invest 5% of their individual annual gross domestic product (GDP) in defense by 2035, with a minimum of 3.5% a year before reaching this goal. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool