β#InsiderTime #WeaponsProduction #RTXCorpβ
π Insider Time: Hot Profits from Warβ
The world's largest defense and aerospace corporations expect record revenues amid a significant increase in orders and escalating geopolitical tensions. The reasons for the sharp rise in profits are the ongoing conflict in Ukraine and the escalating situation in the Middle East.
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The top 15 companies will at least double their orders by the end of 2026, totaling $52 billion.
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The U.S. has allocated nearly $13 billion for weapons production for the five largest defense groups - Lockheed Martin (NYSE: LMT), RTX Corp. (NYSE: RTX), Northrop Grumman Corp. (NYSE: NOC), L3Harris Technologies Inc (NYSE: LHX) and General Dynamics Corp. (NYSE: GD). These military industry monsters are projected to generate $26 billion in cash flow by the end of 2026, more than double the amount generated in 2021.
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For the first time, Boeing Co (NYSE: BA) is not offering large government orders. The company has gravitated more toward civilian than military aβ viation and is experiencing a "safety crisis" due to technical problems in its airliners.
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In Europe, Britain's BAE Systems plc (LSE: BA), Germany's Rheinmetall (ETR: RHM), and Sweden's Saab (STO: SAAB-B), which have been awarded major munitions contracts, will benefit from rising geopolitical tensions. The three companies expect to increase their cash flow by 40-45%.
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With the wave of interest in this sector of the world economy, mergers and acquisitions of companies are inevitable - new promising options may appear.
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Leaving aside moral and ethical issues, including shares of defense companies in the investment portfolio practically guarantees a stable income for 2-3 years. This is not a bad variant of a mid-term strategy.
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What do you think?
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Profits to yβall!