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We recently published a list of Why These Defense Stocks Are Gaining This Week. In this article, we are going to take a look at where Astronics Corporation (NASDAQ:ATRO) stands against other defense stocks that are gaining this week.
On Friday, President Trump unveiled a new next-generation fighter jet, the F-47. According to media reports, the name signifies Trump’s return to the White House as the 47th President of the United States.
READ ALSO: 11 Best American Defense Stocks to Buy Now and 13 Best Defense Stocks to Buy According to Billionaires.
The F-47, which is planned to replace the F-22, will be for air superiority and have stealth and penetration capabilities that exceed those of the current fleet. Defense experts believe that manned fighters will be crucial in any potential future conflict with China and other foes. USAF General David Allvin has described the F-47 as the ‘crown jewel’ of future air dominance systems.
The initial contract to proceed with the production is expected to cost approximately $20 billion. This is a welcome development for America’s defense sector, which has wobbled this year amid mixed statements from the Trump administration on the future of military expenditure in the country.
The move adds to the positive momentum after President Trump’s recent announcement to resurrect America’s military and commercial shipbuilding industry, which he sees as vital to national security, given the strategic competition with China.
Elsewhere, particularly in Europe, defense stocks have soared this year, with European capitals unlocking billions to supercharge their militaries. The United States has repeatedly called for Europe to spend more on defense while stressing that Washington could no longer foot the bill.
EU leaders met in Brussels earlier in March to discuss the ‘ReArm Europe Plan’, which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending. Last week, the German parliament voted in favor of a historic fiscal package, which includes reforms to long-standing debt policies to allow for higher defense spending.
Several Asian contractors are also benefiting from Europe’s defense splurge. A leading aerospace and defense company in South Korea has gained over 92% year-to-date, driven by demand for weapons from NATO countries like Poland and Romania. On March 20, The Economic Times reported a 20% increase in India’s defense and shipbuilding stocks in response to Germany’s big military plans.
With that said, let’s now head over to the list of defense stocks that are gaining this week. Please note that the stocks listed are based on one week’s performance. Our analysis does not reflect the companies’ prospects, and their share price could go high or low in the future, depending on external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.