Defense Stock That’s Tripling The S&P 500

person using MacBook Pro on table

Image Source: Unsplash

Ukraine's ability to thwart Russia's military advance has put a spotlight on a vital aspect of modern warfare - missile technology.

The United States has long been a leader in this field, using some of the best advances available in its various offensive and defensive platforms. We have the best missiles to use in a conflict and the best systems to protect ourselves from missile attacks - and the rest of the world is starting to catch on to the benefits of using these American-made systems.

Consider the horrific damage Ukraine's Javelin missiles had on Russia's military vehicles, where photos from the front lines showed that Ukraine destroyed dozens of Russian T-72 tanks and BMP3 armored fighting vehicles.

Those weapons were part of the 17,000 antitank weapons the United States and NATO shipped to Ukraine, according to The New York Times.

The feat was so impressive, says a report by Reuters, that European leaders have approached the United States to buy additional American-made drones and missiles.

The Europeans also want to get their hands on U.S. anti-missile defense systems as well. This increase in sales on both offensive and defensive tech will prove to be a very significant move for American tech companies.

One name in particular stands to benefit the most, and now is the time to buy-in.

This company is doing more than triple the S&P 500's market gains and will see incredible revenue gains from this trend. Let me show you...

This Company Leads in Next-Gen Defense Tech

Northrop Grumman Corp. (NYSE: NOC) is a combination of a number of legendary companies that have been integral to the aerospace and defense sectors for decades. Grumman made all the airplanes for the U.S. Navy during WWII - and with the leftover, aluminum made some pretty cool canoes as well. It also made ballistic missiles and the Apollo Lunar Module.

It's no surprise, then, that the company as we know it today is well known for its innovative stealth bombers (the B-1 and B-21), as well as unmanned aerial vehicles (UAVs or drones) that are used as targets as well as for C4ISR (command, control, communications, computing, intelligence, surveillance, reconnaissance).

Because of its specialties, Northrop Grumman is also highly regarded for its propulsion systems. It's one of the companies that's building the massive SLS rocket for NASA's Artemis moon program and is the go-to company for the nation's ICBMs (intercontinental ballistic missiles), too.

Here's why it's such an important company for the current state of global warfare.

In the 21st Century, war is all about the networked battlefield, leveraging technologies like unmanned vehicles to operate in hostile spaces without committing troops - all linked in real-time to air, sea, and land units.

This applies both to how nations defend themselves and attack other nations. And missile technology is a vital component for both.

Missiles now operate at hypersonic speeds - Russia is said to have used its hypersonic cruise missiles in Ukraine. And the best defense against them is literally missiles whose job it is to track and destroy other missiles.

These new defenders can be mobile, sit in silos, or orbit in space. And given Russia's new interest in rebuilding the Soviet bloc, Europe is becoming increasingly interested in more missile systems to prevent any belligerent moves on Putin's part.

The good news is, that most counter-missile platforms are highly effective and credible deterrents for conventional missiles that fly from Russia or other troublemakers.

The bad news is, the new generation of hypersonic missiles make that job much more complicated because they move so fast (and if they're cruise missiles, low) that it's tough to track, target, and destroy them once they're launched.

What's more, space has become a new threat from missiles. Using the Earth's rotation (about 1,000 mph), you can send a rocket out of the atmosphere into zero gravity and drop it down on the other side of the planet in a matter of minutes.

How NOC Is Innovating on Missile Defense

Recently, the Air Force requested $59 billion in research and procurement spending over six years for its two top defense programs - a new bomber and a new ICBM.

And NASA just ordered six new missions for SpaceX and Northrop Grumman to resupply the International Space Station.

What's more, Northrop Grumman just announced its newest system to defeat hypersonic missiles, called the Next-Generation Overhead Persistent Infrared (OPIR) system.

The Polar OPIR monitors the Arctic in a difficult elliptical orbit to constantly monitor any missile launch activity over the pole. The company compares it to a sniper's partner, the spotter. The spotter takes a broad view while the sniper focuses on the target.

The Polar OPIR alerts lower satellites of any incursion (the sniper scope) and then those satellites relay the information to anti-missiles on land or at sea.

So not only is Northrop Grumman going to gain from more sales of its current missile systems to NATO clients, but it's also ensuring that it's going to be a key player in the field for years to come.

Its market performance reflects that. Always a steady earnings gainer, Northrop Grumman is absolutely crushing it right now. With the S&P 500 up more than 5% year to date, NOC is up more than 19%.

This is a great way to cash in on the free world's need for robust missile defense with a stock you can count on for the long haul.

See disclaimers here.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.