Published on 28 Apr 2023 on Insider Monkey via Yahoo Finance
10 Best Small Cap Defense Stocks to Buy Now
In this article, we will take a look at the 10 best small-cap defense stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Small Cap Defense Stocks to Buy Now.
Defense Stocks Are "Creating Some Value Opportunities"
On March 31 John Eade, president & director of portfolio strategies at Argus Research, appeared in an interview on TD Ameritrade Network where he discussed the defense sector and the opportunities it is presenting. John Eade noted that though the defense sector has exhibited strong performance over the past couple of years, it has been underperforming in 2023 particularly due to concerns related to government spending and the impending debt ceiling issue. According to John Eade, defense contractors derive a significant portion of their revenue — roughly 50% to 80% — from contracts with the U.S. government. The uncertainty surrounding government spending and the risk associated with the debt ceiling have impacted defense stocks negatively and so they "have pulled back, creating some value opportunities". Here are some comments from John Eade: