After the Ukraine War and other rising tensions around the world defense companies had a boost to their stock value in 2022. American Defense stocks like Lockheed, Raytheon, Boeing, etc. have all lost money in the last 12 months though. Stocks from European companies like Rheinmetall are continuing to just go up and up however. Rheinmetall was at $20 in Feb 2022 and is at $84 now. 4x Increase in 2 years and it doesn’t seem to be slowing down.
As Europe becomes less dependent on the USA for defense because of Russia’s aggression and Trump’s Anti-NATO comments. I think stocks like Rheinmetall, BAE Systems, and SAAB are going to keep increasing in value like they have for at least a few more years.
As long as the Ukraine War continues I think these companies are going to be a smart investment that will probably go up 30%-40% annually on the low end and 50% or above annually on the high end.
BAE Systems: 41% increase last 1y, ($32 FEB 2022, $63 FEB 2024) – 2x in value since pre-war
Rheinmetall: 52% increase last 1y, ($20 FEB 2022, $84 FEB 2024) 4x in value since pre-war
SAAB: 40% increase last 1y, ($12 FEB 2022, $38 FEB 2024) 3x in value since pre-war
For the uninitiated these companies are British, German, and Swedish respectively all of which are leadings arms manufacturers compared to other European countries. Mark my words, as Europe re-arms and as Europe arms Ukraine these stocks will beat the S&P 500 and will be good investments.
Also, for those who wish to support Ukraine’s war effort in what ways they can, this may be a good way to help keep weapons flowing to Ukraine and make some money at the same time. Win/Win.
