During periods of economic uncertainty, defense stocks may offer reliability because a portion of their profits are often tied to long-term government contracts. Defense stocks also tend to get a boost during periods of war and conflict.
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The companies and stocks below comprise the top 10 defense stocks by year-to-date performance. Also included is each stock’s 2022 performance. We compiled this list by choosing only S&P 500 stocks in the Aerospace & Defense that have a Buy or better analyst recommendation.
| Logo | Stock name and ticker | Stock description | YTD return |
|---|---|---|---|
 | TransDigm Group Inc (TDG) | TransDigm Group is an aerospace manufacturing company based in Cleveland, Ohio. | 31.51% |
 | Axon Enterprise Inc (AXON) | Axon Enterprise Inc develops public safety technology and non-lethal weapons products for law enforcement, military and civilians. | 23.59% |
 | Howmet Aerospace Inc (HWM) | Howmet Aerospace Inc is a Pittsburgh-based manufacturer of jet engine components, engineered structures, fastening systems and forged wheels. | 12.58% |
 | Textron Inc (TXT) | Textron Inc is an American industrial conglomerate based in Providence, Rhode Island, with operations spanning aerospace and defense, specialized vehicles, turf care and fuel systems. | 7.30% |
 | Beoing Co (BA) | Boeing is a global aerospace company that develops, manufactures and services commercial airplanes, defense products and space systems. | -0.50% |
 | General Dynamics Corp (GD) | General Dynamics is a global aerospace and defense company headquartered in Reston, Virginia. | -2.28% |
 | Huntington Ingalls Industries Inc (HII) | Huntington Ingalls Industries is a global defense provider and builder of the majority of the US navy fleet. | -4.29% |
 | Northrop Grumman Corp (NOC) | Northrop Grumman is a global aerospace and defense technology company for space, aeronautics, defense and cyberspace. | -13.34% |
 | L3Harris Technologies Inc (LHX) | L3Harris Technologies is a global aerospace and defense company that develops advanced software, hardware and systems integration solutions for spac, air, land, sea and cyber domains. | -14.11% |
 | Rtx Corp (RTX) | RTX Corp is an aerospace and defense conglomerate headquartered in Arlington, Virginia. | -18.52% |
Follow these steps to invest in defense stocks:
Defense stocks stand out for their steady growth and generous dividends that may provide reliability during periods of economic uncertainty. If you’re only getting started trading stocks or you’re looking to build a strong foundation for your portfolio, consider whether defense stocks should have a place in your portfolio.
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