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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 Huntington Ingalls Industries, Inc. (NYSE:HII) stands against other defense stocks that are gaining this week.
America’s defense sector has been shaky since Trump’s return to the White House, amid mixed statements on military expenditure in the early days of his second stint. Shares fell sharply last month after he hinted at cutting defense spending in the future. They wobbled again following his recent contentious spat with Zelensky at the Oval Office.
READ ALSO: 13 Best Defense Stocks to Buy According to Billionaires and 10 Best Large Cap Defense Stocks to Buy Now.
According to a report in the Financial Times on February 24, shares of the six largest American defense companies have fallen 4% since the start of Trump’s second term. Whereas, Europe’s top defense groups have returned gains of around 40% during the same period. Several Korean companies have also benefited from Europe’s defense splurge.
European defense stocks have rallied this year as governments faced pressures to increase military spending. The momentum has further picked up after the conservative victory in Germany, and the European Summit in London, where leaders from the EU and NATO met to express their support for Ukraine.
While US defense stocks have missed the global rally, Citi analyst, Jason Gursky, is urging investors that this is the right time to buy them. Here is what he wrote in a note to clients on Wednesday:
“We recognize the world order is evolving under the current President, perhaps to a multi-polar one in which three countries control spheres of influence over the Americas, Europe and Asia. However, we don’t view that world to be any less dangerous or one that decreases the need to acquire the tools of deterrence.”
Trump’s recent statement on resurrecting American military and commercial shipbuilding has been well-received. Shares of a major naval defense contractor have surged over the past week, following the announcement. The US president has vowed to fix the industry, which he sees as vital to national security, given the strategic competition with China.
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 prospects of the company. Their share price could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.