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【XM Forex】--The Best War Stocks to Buy Now
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Hello everyone, today XM Forex will bring you "【XM Forex】--The Best War Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
War stocks, also known as defense stocks, refer to publicly listed www.xmcnglobal.companies that are actively engaged in the aerospace, space, and defense sectors. They form the backbone of defending sovereign countries and territories. Many analysts expect demand to surge over the next decade amid rising global conflicts and geopolitical tensions.
Why Should You Consider Investing in Defense Stocks?
Defense stocks provide long-term, reliable income streams for www.xmcnglobal.companies. They outperform during market corrections and bear markets, as short-term economic cycles have a minimal impact on their business model.
Despite popular opinion, conflicts do not move the price of defense stocks. There will be a short-term bounce, which usually falters. Investors must understand the long-term nature of defense stocks, where research and development (R&D) remain crucial. Conflicts boost demand for replenishing stockpiles and hardware, create opportunities to test new weapons platforms, and attract future buyers. Still, R&D and cybersecurity services are where defense stocks receive their best margins.
Here are a few things to consider in evaluating defense stocks:
- The defense sector is seeking green alternatives, and stocks with a lead in sustainability could outperform peers.
- Focus on defense stocks with excellent R&D capabilities.
- www.xmcnglobal.communications, electronic warfare, and cybersecurity defense stocks provide ongoing revenue and have excellent growth rates.
- Defense stocks active in drone and anti-drone warfare rank among the fastest-growing defense www.xmcnglobal.companies.
What are the Downsides of Defense Stocks?
The biggest downside is the change in government defense spending. It can have a material impact on defense stocks, but developments over the past three years have nearly eliminated this risk.
Here is a shortlist of currently attractive defense stocks:
- Lockheed Martin (LMT)
- Leidos Holdings (LDOS)
- Teledyne Technologies (TDY)
- Axon Enterprise (AXON)
- Northrop Grumman (NOC)
- Howmet Aerospace (HWM)
- AeroVironment (AVAV)
- Curtiss-Wright (CW)
- RTX (RTX)
- General Dynamics (GD)
An Update on My Previous Best Defense Stocks to Buy Now
Lockheed Martin (LMT) - A long position in LMT between $434.84 and $443.45
LMT rallied over 16% but has since given back some of those gains. I am holding my long positions as I see more upside potential for this defense behemoth.
Leidos Holdings (LDOS) - A long position in LDOS between $173.60 and $182.88
LDOS advanced by over 12% before a minor move into ascending support levels, from where it stabilized. I keep holding this defense stock, which has more upside potential.
Teledyne Technologies Fundamental Analysis
Teledyne Technologies (TDY) is a defense and aerospace conglomerate that includes over 100 www.xmcnglobal.companies. It operates four pisions: Digital Imaging, Instrumentation, Engineered Systems, and Aerospace and Defense Electronics. TDY remains sanctioned by the Chinese government for arms sales to Taiwan. Teledyne Technologies is also a member of the S&P 500 index.
So, why am I bullish on Teledyne Technologies despite its 10%+ correction?
Teledyne Technologies reported solid third-quarter earnings, but investors were hoping for even better fourth-quarter guidance, which added to the healthy correction in TDY. I like Teledyne Technologies' profit margins and persification, which also serve semiconductor foundries, the health care sector, and the scientific industry. I am buying into the strength of its unmanned defense segment but equally appreciate the cost reductions and improvements in its industrial automation and machine vision operations.
Metric
Value
Verdict
P/E Ratio
30.86
Bullish
P/B Ratio
2.63
Bearish
PEG Ratio
1.94
Bullish
Current Ratio
1.66
Bearish
Return on Assets
5.68%
Bullish
Return on Equity
8.28%
Bullish
Profit Margin
14.54%
Bullish
ROIC-WACC Ratio
Negative
Bearish
Dividend Yield
0.00%
Bearish
Teledyne Technologies Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 30.86 makes TDY a reasonably priced stock. By www.xmcnglobal.comparison, the P/E ratio for the S&P 500 is 30.28.
The average analyst price target for Teledyne Technologies is $622.18. This suggests good upside potential with reasonable downside risks.
Teledyne Technologies Technical Analysis

Teledyne Technologies Price Chart
- The TDY D1 chart shows price action moving just below its ascending Fibonacci Retracement Fan.
- It also shows Teledyne Technologies inside a horizontal support zone.
- The Bull Bear Power Indicator turned bearish during the pre-earnings sell-off but suggests bearish exhaustion with early signs of an ascending trendline forming.
My Call on Teledyne Technologies
I am taking a long position in Teledyne Technologies between $519.23 and $535.51. Management cited solid performance in its defense sector, led by unmanned systems, counter-unmanned air systems, and infrared subsystems, and recovery in its short-cycle www.xmcnglobal.commercial segment.
Axon Enterprise Fundamental Analysis
Axon Enterprise (AXON) develops weapons and technology products for military, law enforcement, and civilians. Formerly known as TASER, AXON expanded into supplying drone technology, artificial intelligence, cloud-based services, digital management platforms, body-worn cameras, virtual reality training to law enforcement, and in-vehicle camera systems. AXON is also a www.xmcnglobal.component of the NASDAQ 100 and the S&P 500 indices.
So, why am I bullish on AXON following its breakout?
While valuations remain sky-high, I like the growth trajectory of its artificial intelligence and cloud-based services. The balance sheet is healthy, and its expanding product lines remain well-positioned to accelerate revenue growth to exceed 25% annually. I am bullish on its drone segment, including Drone as First Responder (DFR) solutions, robotic solutions to enhance indoor scouting and decision-making, and its drone defense developed on the advanced AI-Driven Autonomous C2 platform.
Metric
Value
Verdict
P/E Ratio
181.72
Bearish
P/B Ratio
20.70
Bearish
PEG Ratio
2.52
Bullish
Current Ratio
2.95
Bullish
Return on Assets
5.25%
Bullish
Return on Equity
11.94%
Bullish
Profit Margin
13.64%
Bullish
ROIC-WACC Ratio
Unavailable
Bearish
Dividend Yield
0.00%
Bearish
Axon Enterprise Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 181.72 makes AXON an expensive stock. By www.xmcnglobal.comparison, the P/E ratio for the S&P 500 is 30.28.
The average analyst price target for AXON is $186.69. It suggests moderate upside potential from current levels.
Axon Enterprise Technical Analysis

Axon Enterprise Price Chart
- The AXON D1 chart shows price action breaking out above its ascending 38.2% Fibonacci Retracement Fan level with expanding bullish momentum.
- It also shows Axon Enterprise www.xmcnglobal.completing a breakout above a massive horizontal support zone.
- The Bull Bear Power Indicator is bullish with an ascending trendline.
My Call on Axon Enterprise
I am taking a long position in AXON between $718.19 and $753.16. I am buying into the strength and growth prospects of its artificial intelligence and cloud-based solutions, which account for over 40% of revenues, and into its drone pision.
The above content is all about "【XM Forex】--The Best War Stocks to Buy Now", which is carefully www.xmcnglobal.compiled and edited by XM Forex editor. I hope it will be helpful for your trading! Thank you for your support!
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