3 Defense Stocks to Boost Your Portfolio

The defense industry has been especially relevant lately, given recent news, and it doesn’t look like that is going to change anytime soon. And while individual circumstances can turn around on a dime, the greater need for the defense industry is here to stay, and certain companies are looking stronger than ever for it.

That leads one to wonder whether one should invest in defense, aerospace, and related industries.

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 For your portfolio, though, some defense companies are better than others, and to help you pick those out, there is the Zen Ratings system. It reviews stocks based on 115 carefully considered factors to pick out the best of the best, assigning them an A Zen Rating. And those top A-rated stocks have an average annual return of +32.52%.

Here are some defense stocks that are worth your attention:

1. Moog Inc (NYSE: MOG.A)

Moog works on precision controls and control systems for not only military but also commercial aircraft. It has regularly surpassed estimates and is less likely to experience the ups and downs of a turbulent economy, given its industry.

Moog is currently experiencing high stock prices within the context of generally steady growth (with more of a spike in the last couple of months). The main question being asked is whether there’s still room to grow. Based on our Zen Ratings system, the answer is likely yes, given its Component Grade of A for Growth and a B for Momentum and Sentiment. Investors and signs point to continued potential for the controls specialist, making it worth your attention.

2. Textron Inc (NYSE: TXT)

TXT is a longstanding manufacturer and servicer of aircraft that has benefited from recent and announced defense spending. You will want to closely monitor how it rides the momentum of recent events, whether it sustains its recent success, and its Q4 results, which are scheduled for release on January 28th.

Interestingly, reviewing TXT’s Component Grades, it scores an A for both Safety and Value. This means not only is it likely undervalued at this time, but it is also a relatively consistent performer. There is only one other A-rated company with this combination, and no other defense or aerospace company. This could represent a unique opportunity for your portfolio.

3. Huntington Ingalls Industries Inc (NYSE: HII)

Primarily a shipbuilder specializing in military ships, HII designs, builds, and then maintains ships for the U.S. Navy, Coast Guard, and other clients across the globe. 

Notably, the company has also experienced steady growth, with a +112.88% change over the last 12 months. Awarded contracts and changes to defense spending may have spurred recent growth, though the company has experienced a safer, steadier rise that more conservative investors will want to see before investing.

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