Morgan Stanley says buy these defense stocks post Venezuela and Iran
CNBC••entertainment
Key Points:
- Morgan Stanley expects defense stocks to gain in 2024 as the U.S. increases military operations amid rising geopolitical tensions, especially following recent actions in Venezuela and Iran.
- U.S. defense prime contractors currently trade at about a 30% discount to the S&P 500, presenting potentially attractive investment opportunities.
- Northrop Grumman is Morgan Stanley's top pick in the sector, with shares up over 33% in the past year and a 1.5% dividend yield; other favored stocks include RTX, L3Harris Technologies, and General Dynamics.
- Increased U.S. Department of War spending on technologies like 3D printing for drone manufacturing is expected to boost defense firms, with further spending hikes anticipated
:max_bytes(150000):strip_icc()/GettyImages-22400154171-19eb2573d96647f8894478942b5721be.jpg)
