Top defense stocks to explore in 2022

Highlights

• Northrop Grumman Corporation (NYSE:NOC) stock gained 34.77% in 12 months.
  
  
• Raytheon Technologies Corporation (NYSE:RTX) expects fiscal 2021 sales of around US$64.5 billion.
  
  
• Lockheed Martin Corporation (NYSE:LMT) stock rose 10.26% in a year.

Defense stocks are gaining investors’ attention lately. These stocks generally see steady growth. The bulk of the revenue in the defense sector comes from the US government.

In addition, the regular flow of big government contracts provides predictability and financial stability to the sector. Here we explore the top defense stocks that are worth exploring in 2022.

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Huntington Ingalls Industries, Inc. (NYSE:HII)

Huntington Ingalls is a leading military shipbuilding firm based in Virginia. It provides a range of professional services to clients, including the government and the industry.

The shares of the company traded at US$196.85 at 12:04 pm ET on January 19, up 0.65% from their previous close. The stock gained 14.66% over the past 12 months.

It has a market cap of US$7.87 billion, a P/E ratio of 11.79, and a forward P/E one-year ratio of 14.29. Its EPS is US$16.68. The 52-week highest and lowest stock prices were US$224.13 and US$156.36, respectively. Its trading volume was 276,762 on January 18.

The company will report its fourth-quarter FY2021 results on February 10.

The revenue was US$2.33 billion in Q3, FY21, compared to US$2.31 billion in the year-ago quarter. Its net earnings were US$147 million against an income of US$222 million in Q3, FY20.

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Northrop Grumman Corporation (NYSE:NOC)

Northrop is an aerospace and defense technology firm based in Falls Church, Virginia. It manufactures weapons and other military equipment for clients.

The stock traded at US$408.674 at 12:06 pm ET on January 19, up 1.75% from its previous close. The stock rose 34.77% over the past 12 months. Its market cap is US$64.09 billion, the P/E ratio is 14.32, and the forward one-year P/E ratio is 15.69. Its EPS is US$28.45.

The stock saw the highest price of US$408.03 and the lowest price of US$282.88 in the last 52 weeks. Its share volume on January 18 was 774,771. It will report its fourth-quarter fiscal 2021 results on January 27 before the opening bell.

The total sales were US$8.72 billion in Q3, FY21, compared to US$9.08 billion in the same quarter a year ago. Its net earnings were US$1.06 billion against US$986 million in Q3, FY20.

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Raytheon Technologies Corporation (NYSE:RTX)

Raytheon Technologies is a leading aerospace and defense conglomerate firm based in Waltham, Massachusetts. It offers services in the aerospace, intelligence, and defense sectors.

The shares of the company traded at US$91.18 at 12:09 pm ET on January 19, up 0.47% from their previous closing price. The stock rose 30.84% over the past 12 months.

It has a market cap of US$135.91 billion, a P/E ratio of 41.27, and a forward P/E one-year ratio of 21.66. Its EPS is US$2.20. The 52-week highest and lowest stock prices were US$92.48 and US$65.02, respectively. Its trading volume was 6,010,736 on January 18.

The company will release its fourth-quarter fiscal 2021 results on January 25.

The company's total sales were US$16.21 billion in Q3, FY21, an increase of 10% YoY. Its net income came in at US$1.4 billion, compared to US$151 million in Q3, FY20.

In fiscal 2021, the firm expects its sales to be around US$64.5 billion.

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General Dynamics Corp (NYSE:GD)

General Dynamics is a defense and aerospace firm based in Reston, Virginia. It provides its services in the aviation, shipbuilding, and combat vehicle industries.

The stock traded at US$213.01 at 12:20 pm ET on January 19, up 0.87% from its previous closing price. It rose 37.90% over the past 12 months.

Its market cap is US$59.45 billion, and the P/E ratio is 18.13. Its EPS is US$11.65. The stock saw the highest price of US$214.70 and the lowest price of US$146.53 in the last 52 weeks. Its share volume on January 18 was 254,192.

The revenue was US$9.56 billion in Q3, FY21, compared to US$9.43 billion in the year-ago quarter. Its net income was US$860 million, compared to US$834 million in Q3, FY20.

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Lockheed Martin Corporation (NYSE:LMT)

Lockheed Martin is an aerospace and defense technology firm based in Bethesda, Maryland. It offers services in defense, information security, and other related sectors.

The shares of the company traded at US$379.91 at 12:26 pm ET on January 19, up 0.89% from their previous close. The stock rose 10.26% over the past 12 months.

It has a market cap of US$105.02 billion, a P/E ratio of 17.57, and a one-year forward P/E ratio of 13.69. Its EPS is US$21.67. The 52-week highest and lowest stock prices were US$396.99 and US$319.81, respectively. Its trading volume was 2,472,313 on January 18.

It will release its fourth-quarter fiscal 2021 financial results on January 25. In the third quarter of fiscal 2021, its net sales were US$16.02 billion, compared to US$16.49 billion in the year-ago quarter. Its net earnings were US$614 million against US$1.69 billion in Q3, FY20.

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Bottomline

The US defence sector typically sees a steady growth due to the regular flow of government orders. The S&P 500 Aerospace & Defense Industry index gained 21.11% in past 12 months. However, investors should exercise due diligence before investing in the stock market.