War is one of humanity’s oldest pastimes…
And investing in it is one of the oldest ways to make money.
And we’re not saying that’s right or wrong… but one thing is for sure: a lot of wealthy and powerful people are investing in defense stocks right now, including members of Congress.
A lot of that investment is for bluechip companies like Raytheon or well-known startups like Palantir – so here are 3 lesser known defense stocks that could benefit big from the unfortunate strife in the world right now.
KBR Inc. (KBR)
KBR is all about providing science, engineering, and tech solutions, and they’re doing it for both the government and commercial folks. They’ve got a sweet spot when it comes to taking advantage of government spending on space and cybersecurity, especially from the Department of Defense (DoD). According to Mora, KBR’s sustainable technology solutions business has been doing even better than expected. And guess what? The demand for sustainable solutions is on the rise. Their Sustainable Technology Solutions (STS) branch is into all kinds of cool stuff, like hydrogen and ammonia work, plastics recycling, and even green refining technology. They’ve got this Homesafe contract coming up in 2024 that should give a nice boost to their government solutions side. And let’s not forget the civil agency modernization efforts, which are looking promising. Bank of America seems pretty optimistic too, giving KBR a “buy” rating and setting a target price of $75. Currently, their stock is sitting at $59.68 as of September 25th.
CACI International Inc. (CACI)
Now, CACI is in the business of providing software services to the U.S. government. If you’re eyeing the DoD’s space and cybersecurity spending, this could be your ticket in. Mora tells us they’ve snagged three big contract awards – the FocusedFox, Spectral, and EITaaS contracts. These should help fuel their growth in the near future. With a portfolio of products and a hefty order backlog, CACI seems to be well aligned with the government’s priorities. Even better, their fiscal 2024 guidance suggests around 4.5% revenue growth, regardless of what’s going on with government funding. Bank of America gives them a “buy” rating and sets a target price of $385, while their stock closed at $311.85 on September 25th.
BWX Technologies Inc. (BWXT)
Now, here’s a company supplying nuclear reactors, fuel, and related services to U.S. submarines and carriers. Epstein thinks BWX is the way to go if you want to tap into the steady growth in U.S. Navy spending. Plus, they’re branching out into some exciting areas like nuclear energy and nuclear medicine. Bipartisan support for beefing up U.S. naval spending to keep an eye on China is also a plus. Oh, and they’re teaming up with Lockheed Martin Corp. to work on a spacecraft using nuclear thermal propulsion – talk about reaching for the stars! Bank of America is pretty bullish on them too, slapping a “buy” rating and a target price of $85, while BWXT’s stock closed at $74.81 on September 25th.
