Amid escalating geopolitical tensions throughout the world, prospective investors may be drawn to The Boeing Company (NYSE:BA), Lockheed Martin Corporation (NYSE:LMT), and Raytheon Technologies Corporation (NYSE:RTX), three major defense players in the United States. It’s interesting to see that American politicians have traded (bought and sold) in these businesses over the last three months.
It is important to note that the U.S. government’s promise to Taiwan to sell defense goods and technologies worth $1.09 billion may benefit these defense industry companies. After visiting the Asian island in August 2022, Democratic California Representative Nancy Pelosi decided.
The sale of $1.09 billion worth of goods to Taiwan will include the sale of $355 million worth of air-to-sea Harpoon missiles, $85 million worth of air-to-air Sidewinder missiles, and $655 million worth of logistical assistance, according to the United States Department of State on Friday. The logistic package would support Taiwan’s radar surveillance system’s defenses against China.
This post will discuss how Boeing, Raytheon, and Lockheed Martin might profit from this agreement.
The Boeing Company
The company is located in Chicago, Illinois, and has experience producing defense systems, military aircraft, uncrewed aerial vehicles, satellites, anti-ship missiles (Harpoon), and other goods and technology.
Representative of California Alan Lowenthal bought shares of this $90.15 billion corporation twice in the last three months. Both Democrat’s Buy transactions had values between $1,000 and $15,000.
Is it Time to Buy Boeing Stock?
Given analysts’ enthusiasm on TipRanks and American lawmakers’ curiosity, Boeing stock appears to be a promising investment at the moment. Based on 11 Buys and 2 Holds, the consensus rating for the firm is a Strong Buy.
The average price goal for Boeing is $213.33, which would mean a potential increase of 40.52% from the current price. The highest and lowest price targets are $281 and $170, respectively. Shares of Boeing increased 9% during the previous three months to close at $151.82 on Friday.
Raytheon Technologies Corporation
The $129.3 billion company is renowned for its defense radar systems, technologies, and missiles, particularly Sidewinder missiles. The Waltham, Massachusetts-based business also designs aviation systems, provides aircraft engines, and offers services to aircraft manufacturers.
In the previous three months, several U.S. politicians have bought shares of Raytheon Technologies, including Kathy Manning (a Representative from North Carolina), Kevin Hern (a Representative from Oklahoma), and Diana Harshbarger (a Representative from Tennessee).
Democrats Kathy Manning and Kevin Hem and Republicans Diana Harshbarger each made one Buy move in June, while Democrat Kathy Manning purchased 11 to 165 Raytheon shares for $1,000 to $15,000 in July. The price range for both transactions was between $1,000 and $15,000.
Does Raytheon Stock Make a Good Investment?
Prospective investors may find Raytheon stock, which has a strong future and is already popular with American lawmakers, to be an attractive investment.
In addition to American lawmakers, TipRanks experts are upbeat about the future of Raytheon Technologies. Based on seven Buy ratings and one Hold, the firm has a Strong Buy consensus rating, which is noteworthy.
The average price prediction for Raytheon stock is $112, representing a potential increase of 27.87% from the current price. The highest and lowest price targets are $120 and $98, respectively. In the past three months, Raytheon stock has dropped 9.4%. The last closing price for Raytheon was $87.59.
Lockheed Martin Corporation
The surveillance systems, missiles, military aircraft, and defense technology produced by Lockheed Martin are in high demand. The Bethesda, Maryland-based business is well-known for its cyber solutions, helicopter, and unmanned aerial systems.
In July, Democrat Kathy Manny spent $1,000–$15,000 on three–38 shares of Lockheed Martin. In the same month, Manny also completed one Sell trade with a value of $1,000 to $15,000.
Additionally, in June, Republicans Diana Harshbarger and Kevin Hem purchased shares of Lockheed Martin. Both of the Buy deals had values between $1,000 and $15,000.
Senator from Nebraska Deb Fischer, meantime, sold Lockheed Martin shares in June. The Republican’s deal was valued between $50,000 and $100,000.
Should I Buy or Sell Lockheed Martin Stock?
For now, interested investors interested in Lockheed Martin stock could want to take a wait-and-see attitude.
According to TipRanks, analysts have given the stock a Hold consensus recommendation based on three Buys and nine Holds. In addition, American politicians made both Buy and Sell trades on the stock over the past three months.
With an average price estimate of $472.33, Lockheed Martin stock may rise 12.84% from its current price. The highest and lowest price targets are $539 and $406, respectively. The price of Lockheed shares had dropped 5% during the last three months. On Friday, Lockheed Martin’s market value was $418.57.
Bottom Line
The prospects of Boeing, Raytheon Technologies, and Lockheed Martin appear promising, given the size of the defense business and the escalating political unrest in a few countries. The three defense companies have a Smart Score of 9 out of 10, reflecting their ability to outperform the general market. Investors interested in learning more about the U.S. defense industry may find some helpful information on the trading activity of American politicians.
Featured Image – Megapixl © Photochina
