European giants like Leonardo, Thales and Safran are drawing more and more investors
As an investor, you might be wondering: Is it too late to get in on defense stocks? Especially now that prices keep climbing. Today gave us another glimpse of how strong these companies really are. In Europe, defense seems to have become a magnet for growth.
Leonardo climbs higher thanks to security tech
Leonardo S.p.A. from Italy rose 0.64% today, closing at €48.55. That might sound small, but it fits into a bigger upward trend. What’s driving it? The company’s ‘Defense Electronics & Security’ division is doing very well.
Leonardo is benefiting from strong demand for smart security solutions – think radar, digital communications and cybersecurity. Investors clearly see a future here.
Thales stays strong after huge annual gains
French company Thales barely moved today (+0.04%), closing at €248.30. But if you zoom out, the story changes. Its share price has soared 80% this year alone. Thales builds advanced defense systems and high-tech communications tools.
If you bought Thales a year ago, you’re likely smiling right now.
Safran continues its solid performance
Safran closed today at €262.00, up 0.85%. During the day, it even touched €265. This French aerospace company makes jet engines and airplane parts. With a year-to-date gain of 23.53%, Safran is another top European performer.
What about U.S. defense stocks?
Europe isn’t the only place where defense is heating up. In the U.S., things were a bit more mixed today:
- Lockheed Martin dropped 1.63%, but remains a heavyweight.
- RTX Corporation (formerly Raytheon) is trading near its 52-week high.
- Northrop Grumman is preparing a dividend payout of $2.31 per share on June 18 – a 12% increase.
- General Dynamics rose slightly to close at $281.26.
What’s driving all this?
The world is changing fast. Conflicts and global tensions are on the rise. Governments are spending more on defense than ever. You can see this reflected in the stock charts.
Companies like Rheinmetall (+180% YTD), Thales (+80%) and Leonardo (+17%) are taking off. Investors are now watching the upcoming NATO summit in The Hague closely. Decisions there could lead to higher defense budgets across Europe – another potential boost for these stocks.
What should you do as an investor?
You may be asking: Did I miss the boat? Is there still upside left? Fair questions. Analysts say the answer is yes. They remain bullish on names like RTX Corporation and General Dynamics. Defense is seen as a stable sector – especially in uncertain economic times.
Of course, stocks don’t just go straight up. But if you believe security will play a bigger role in the future, this might be a space worth exploring.
Will you stay on the sidelines – or seize this moment?
Take a fresh look at your portfolio. Do you already own defense stocks? If not, consider researching Leonardo, Safran or Thales. And keep an eye on the NATO summit in The Hague – it could kick off the next big rally.
