In the United States exist some of biggest defense companies and the top 5
in United States currently would be Boeing, Raytheon, Lockheed Martin, Northrop
Grumman, and General Dynamics. These defense companies are known for the
following: Boeing is famously known as an aerospace company, Raytheon Company
researches and develops technology and weapons for the defense industry,
Lockheed Martin is also an aerospace and security company, Northrop Grumman
focuses on spacecraft and aircraft, and General Dynamics is a defense and also
an aerospace company. These are the current market value in billions for these
companies. Boeing currently stands at $130.27 billion, Raytheon Company at
$126.72 billion, Lockheed Martin at $ 107.85 billion, Northrop Grumman at $59.51
billion and General Dynamics at $53.80 billion.
Some of advantages of investing
in defense companies may include things
like the products having a long life cycle, funding troops at home or
overseas and also operations for protecting the country and also funding for
research and development. More funding means more impressive cutting edge tech
for department of defense especially in geopolitics and high barriers to
protect profits, government contracts et cetera. Another important
advantage of investing in the defense sector is that defense stocks tend to not
get too affected during a recession.
During the pandemic COVID could
have had an effect on defense spending since there was technically a recession
caused by the pandemic so it is very easy for people to believe there may be
defense budget cuts, but history has shown that recessions do not get too
affected by economic crisis.
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