2 Top Aerospace Stocks to Buy in January
The January 2 U.S. airstrike that killed Iranian general Qassem Soleimani folded a new twist into what already figured to be a complicated year for aerospace and defense stocks. Defense contractors often come under pressure in U.S. election years, as rhetoric about cutting spending inevitably emerges, so it is typically wise to choose carefully when making investment decisions.
It's pointless for investors to try to predict what the long-term geopolitical ramifications of the strike will be, but one thing that does seem likely is that with tensions in the Middle East ratcheting up, it will be hard for whoever is in the White House to dramatically cut off-budget overseas contingency spending in the years to come. That, in turn, is generally bullish for the defense sector.
The best investors are the ones able to look beyond the near-term noise and focus on companies with sustainable, long-term advantages. However, price and sentiment do matter. Here is why Raytheon (NYSE: RTN) and TransDigm Group (NYSE: TDG) are two aerospace stocks worth buying right now, and why Boeing (NYSE: BA) might be worth adding to your watch list.
Source Fool.com
