Top defense stocks to explore as industry evolves at break-neck speed

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 Top defense stocks to explore as industry evolves at break-neck speed
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Highlights

  • Net earnings of Northrop Grumman Corporation (NYSE: NOC) surged by 3% in Q2.
  • Net sales of Raytheon Technologies Corporation (NYSE: RTX) increased by 13% in the second quarter.
  • Net sales of Lockheed Martin Corporation (NYSE: LMT) soared to US$17 billion.

Defense companies offer various security products and services, including weapons, combat vehicles, ships, fighter jets, etc., to their clients, mainly the governments and law enforcement agencies globally. Defense firms generate a vast amount of revenue from the US government.

These companies also provide cyber-security and intelligence systems and other related technology solutions to their clients.

Let's explore some of the US-based defense firms drawing attention amid various domestic and foreign threats.

Lockheed Martin Corporation (LMT)

The stocks of the aerospace, defense, and information security firm traded at US$361.38 as of 12:49 pm ET on August 12, down 0.53 percent compared to its closing price on August 11. The stock value of Lockheed surged 4.86 percent YTD.

The market capitalization of the company is US$99.97 billion. It's forward P/E one year is 14.61. The earnings per share (EPS) is US$25.51.

The net sales of the Maryland-based corporation in Q2 were US$17 billion, compared to US$16.2 million in the year-ago quarter. Its net earnings came in at US$1.8 billion, or US$6.52 per share, while the generated cash from operations was US$1.3 billion in Q2 for fiscal 2021. 

The highest and lowest stock price of the firm for 52 weeks is US$402.38 and US$319.81. Its share volume is 412,366.

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Northrop Grumman Corporation (NYSE: NOC)


The stocks of the aerospace and defense technology company traded at US$364.28 as of 12:58 pm ET on August 12, down 0.50 percent compared to its closing price on August 11. The stock value of NOC surged 23.58 percent YTD.

The market capitalization of the company is US$58.35 billion. It's forward P/E one year is 14.62. The earnings per share (EPS) is US$27.71.

The net earnings of the Virginia-based firm in Q2 rose 3 percent YoY to US$1.04 billion, while its earnings per share were US$6.42, compared to US$6.01 in the year-ago quarter. The total sales increased by 3 percent YoY to US$9.15 billion from last year's same quarter of US$8.88 billion. 

The highest and lowest stock price of the firm for 52 weeks is US$379.03 and US$282.88. Its share volume is 142,076.

Raytheon Technologies Corporation (NYSE: RTX)


The stocks of the aerospace and defense conglomerate firm traded at US$87.98 as of 1:18 pm ET on August 12, down 0.72 percent compared to its closing price on August 11. The stock value of Raytheon surged 28.57 percent YTD.

The market capitalization of the company is US$132.96 billion. It's forward P/E one year is 21.75. The earnings per share (EPS) is US$1.44.

The net sales of the Massachusetts-based corporation in Q2 increased by 13 percent YoY to 15.9 billion. Its net income came in at US$1.04 billion, or US$0.69 per share, compared to US$3.8 billion or US$2.56 apiece in the year-ago quarter.

The highest and lowest stock price of the firm for 52 weeks is US$89.98 and US$51.92. Its share volume is 1,184,055.

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Leidos Holdings Inc. (NYSE: LDOS)


The stocks of the defense, aviation, and information technology firms traded at US$96.03 as of 1:33 pm ET on August 12, down 0.35 percent compared to its closing price on August 11. The stock value of Leidos ticked down 0.06 percent YTD.

The market capitalization of the company is US$13.58 billion. It's forward P/E one year is 14.62. The earnings per share (EPS) is US$5.10.

The revenue of the Reston, Virginia-based corporation surged 18% YoY to US$3.4 billion in the second quarter of fiscal 2021. Its operating income came in at US$269 million compared to US$249 million in the year-ago quarter. The adjusted EBITDA was US$359 million.

The highest and lowest stock price of the firm for 52 weeks is US$113.75 and US$79.15. Its share volume is 214,702.

Huntington Ingalls Industries Inc. (NYSE: HII)


The stocks of the military shipbuilding company traded at US$206.94 as of 1:42 pm ET on August 12, down 0.95 percent compared to its closing price on August 11. The stock value of Huntington increased by 26.14 percent YTD.

The market capitalization of the company is US$8.31 billion. It's forward P/E one year is 15.92. The earnings per share (EPS) is US$18.48.

The revenue of the Newport News, Virginia-based corporation surged 10.1 percent YoY to US$2.2 billion in the second quarter of fiscal 2021. Its operating income came in at US$128 million, and its operating margin was 5.7% compared to US$57 million and 2.8% in the year-ago quarter. Its diluted earnings per share were US$3.20

The highest and lowest stock price of the firm for 52 weeks is US$224.13 and US$136.44. Its share volume is 41,466.

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Bottom line

The US defense industry has been in focus amid various security threats and geopolitical uncertainties worldwide. Although the defense stocks withdrew in 2020 due to the pandemic, business experts foresee consistent growth for the sector in the coming years.

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