Iran Tensions Illustrate Defense Supply Shortages That Will Benefit These 3 Stocks
Lockheed Martin, Raytheon, and L3Harris are leaders in supplying U.S. missile defense systems.
Overview
Ongoing tensions with Iran led the U.S. Defense Department to announce on July 27 two seven-year agreements with L3Harris Technologies (NYSE: LHX) and Lockheed Martin (NYSE: LMT) to expand propulsion capacity for Patriot and Terminal High Altitude Area Defense (THAAD) interceptors. The point is to address an ongoing shortage of missile defense systems.
The need to address the shortage also benefits RTX (NYSE: RTX), a key contractor and supplier of the Patriot and THAAD interceptors. All three defense stocks are up so far this year, but while L3Harris is up only 3%, RTX and Lockheed Martin are up by more than 17% and 19%, respectively. The run is likely to continue, though. Why I like each of these stocks:
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Originally published at www.fool.com.