Defense stocks are one of stocks with a good degree of predictability when it comes to projecting growth, especially US, Chinese and Russian Defense stocks.
Since defense companies relies on customers that are historically stable when it comes to defense spending, it makes it easier to project defense companies’ growth. Of course you know that their customers are governments with deep pockets and very good record of defense spending.
Update: With the Israel-Palestine War, Russia invasion of Ukraine, and the brewing China-Taiwan conflict, defense stocks are blowing hot, in a market with bearish undertones, this ‘unfortunate’ event presents traders with a rare opportunity to trade defense stocks for promising returns with a great deal of certain.
TRANSFORM YOUR INVESTMENT PORTFOLIO
Want to Build a Winning Growth Portfolio
Whether you choose to go long or short on defense stocks, the gains or losses with most likely be heavy with a lot of trading activities going on in the defense space. Defense is one of the surest train to ride right now.
As such if you are looking to swim in that waters, here are cheap defense stocks under $5, $10 and $20:
1. Taylor Devices, Inc. (NASDAQ: TAYD)
Taylor Devices, Inc. designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally.
The company’s products include seismic dampers that are designed to mitigate the effects of earthquake tremors on structures; Fluidicshoks, which are compact shock absorbers primarily used in defense, aerospace, and commercial industries; and crane and industrial buffers, which are larger versions of the Fluidicshoks for industrial application on cranes, ships, container ships, railroad cars, truck docks, ladle and ingot cars, ore trolleys, and car stops.
Its products also comprise self-adjusting shock absorbers that include versions of Fluidicshoks, and crane and industrial buffers, which automatically adjust to various impact conditions and are designed for high cycle application primarily in the heavy industry; liquid die springs that are used as component parts of machinery and equipment used in the manufacture of tools and dies; vibration dampers, which are primarily used by aerospace and defense industries to control the response of electronics and optical systems subjected to air, ship, or spacecraft vibration; machined springs used in the aerospace applications; and custom actuators for special military and aerospace applications.
The company markets its products through a network of sales representatives and distributors. Taylor Devices, Inc. was founded in 1955 and is headquartered in North Tonawanda, New York.
2. Air Industries Group (NYSE: AIRI)
Air Industries Group, an aerospace and defense company, designs, manufactures, and sells structural parts and assemblies that focus on flight safety.
The company operates through two segments, Complex Machining and Turbine Engine Components.
- The Complex Machining segment offers landing gear, arresting gear, engine mounts, flight controls, throttle quadrants, and other components. Its products are deployed on a range of military and commercial aircraft, including Sikorsky’s UH-60 Black Hawk, Lockheed Martin’s F-35 Joint Strike Fighter, Northrop Grumman’s E2 Hawkeye, Boeing’s 777, Airbus’ 380 commercial airliners, and the U.S. Navy F-18 and USAF F-16 fighter aircraft.
- The Turbine Engine Components segment makes components and provides services for jet engines and ground-power turbines. Its jet engines components are used on the USAF F-15 and F-16, the Airbus A-330 and A-380, and the Boeing 777, as well as ground-power turbine applications.
Air Industries Group was founded in 1979 and is based in Bay Shore, New York.
3. Sypris Solutions, Inc. (NASDAQ: SYPR)
Sypris Solutions, Inc. provides truck components, oil and gas pipeline components, and aerospace and defense electronics primarily in North America and Mexico.
It operates through two segments, Sypris Technologies and Sypris Electronics.
- The Sypris Technologies segment supplies forged, machined, welded, and heat-treated steel components for the commercial vehicle, off highway vehicle, light truck, automotive, and energy markets. This segment also offers drive train components, including axle shafts, transmission shafts, gear sets, steer axle knuckles, and other components for automotive and truck manufacturers. In addition, it provides value added operations for drive train assemblies; and manufactures pressure closures and other fabricated products for oil and gas pipelines.
- The Sypris Electronics segment offers electronic manufacturing services, such as circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability, and design for specification work for aerospace and defense electronics market. This segment also provides circuit card assembly services for electronic sensors and systems, including radar and targeting systems, tactical ground stations, navigation systems, weapons systems, and targeting and warning systems; and value added solutions, such as low-volume prototype assembly and high-volume turnkey manufacturing.
The company also offers engineering design and repair or inspection services. In addition, it sells its engineered product under the Tube Turns brand. The company was incorporated in 1977 and is headquartered in Louisville, Kentucky.
4. Ultralife Corporation (NASDAQ: ULBI)
Ultralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide.
The company serves government, defense, and commercial sectors. The company operates in two segments, Battery & Energy Products and Communications Systems.
- The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium ion cells, multi-kilowatt module lithium ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables.
- The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems. This segment’s military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers. It sells its products under the Ultralife, Lithium Power, McDowell Research, AMTI, ABLE, ACCUTRONICS, ACCUPRO, ENTELLION, SWE DRILL-DATA, and SWE SEASAFE brands through original equipment manufacturers, and industrial and defense supply distributors, as well as directly to the United States and international defense departments. In addition, the company sells its 9-volt battery to the broader consumer market through national and regional retail chains and Internet retailers.
Ultralife Corporation was founded in 1990 and is headquartered in Newark, New York.
5. Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS)
Kratos Defense & Security Solutions, Inc. provides mission critical products, solutions, and services in the United States and internationally.
The company operates in two segments, Kratos Government Solutions and Unmanned Systems.
- The Kratos Government Solutions segment offers microwave electronic products; space, training, and cybersecurity products; C5ISR/modular systems; turbine technologies; and defense and rocket support services. It is also involved in engineering, developing, and testing of gas turbines, propulsion components, engines, and other systems for military and commercial applications, as well as focuses on development and production of jet engines for tactical weapon systems and jet unmanned aerial systems.
- The Unmanned Systems segment provides unmanned aerial systems, and unmanned ground and seaborne systems.
The company serves the Department of Defense, intelligence agencies, and other national and homeland security related agencies; local, state, and foreign governments; and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was founded in 1994 and is headquartered in San Diego, California.
6. Intevac, Inc. (NASDAQ: IVAC)
Intevac, Inc. provides vacuum deposition equipment for various thin-film applications, and digital night-vision technologies and products to the defense industry in the United States, Asia, Europe, and internationally.
The company operates through two segments, Thin-Film Equipment and Photonics.
- The Thin-Film Equipment segment designs and develops thin-film processing systems that are applied in hard disk drive media, display cover panel, and solar photovoltaic markets.
- The Photonics segment develops high-sensitivity digital sensors, cameras, and system that are applied in defense industry. It also provides integrated digital night-vision imaging systems.
The company sells its products through direct sales force and distributors. Intevac, Inc. was founded in 1990 and is headquartered in Santa Clara, California.
7. Embraer S.A. (NYSE: ERJ)
Embraer S.A. designs, develops, manufactures, and sells aircraft and systems in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally.
It operates through Commercial Aviation, Defense and Security, Executive Jets, Service & Support, and Other segments.
- The Commercial Aviation segment develops, produces, and sells commercial jets; and provides support services, as well as leases aircraft. Its products include ERJ 145 family, EMBRAER 170/190 family, and E-Jets family of commercial aircraft.
- The Defense and Security segment engages in the research, development, production, modification, and support for military defense and security aircraft, as well as offers a range of products and integrated solutions that include radars, special space systems (satellites), and information and communications systems, such as command, control, communications, computer, intelligence, surveillance, and reconnaissance systems.
- The Executive Jets segment develops, produces, and sells executive jets; and offers support services. It also leases Legacy 600 and Legacy 650 executive jets in the super midsize and large categories; Legacy 450 and Legacy 500 executive jets in the midlight and midsize categories; Phenom family executive jets in the entry jet and light jet categories; Lineage 1000, an ultra-large executive jet; and Praetor 500 and Praetor 600, disruptive executive jets in the midsize and super midsize categories.
- The Service & Support segment offer service solutions and support services.
- The Other segment is involved in the supply of fuel systems, structural parts, and mechanical and hydraulic systems; and production of agricultural crop-spraying aircraft. The company has a strategic partnership with The Boeing Company.
The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.