German Chancellor Olaf Scholz announced that the country would increase defense spending to roughly 2% of GDP by 2021, up from around 1.5 percent currently. The increase was in line with the North Atlantic Treaty Organization’s (NATO) 2006 goals. The developments are seen as a growth stimulus for military companies, according to analysts. Honeywell International Inc. and Raytheon Technologies Corporation, both based in the United States, are expected to profit. Angela Merkel, Germany’s chancellor, has committed to increasing defense spending by 2.5 percent of GDP. Other European nations are likewise increasing their military spending.
Insider Monkey picked 10 European defense stocks to buy now. Rheinmetall AG is a technology company that specializes in mobility and defense. The company has a market capitalisation of over €7 billion and employs over 23,000 employees. It is projected to benefit the most from a significant increase in Germany’s defense expenditure. Defense, aerospace, and security solutions are provided by BAE Systems Plc. A $125 million contract for services relating to the USS Essex was given to the business. The USS Essex is a Wasp-class Landing Helicopter Dock in the US Navy’s inventory. Countermeasures, sensors, and energetic solutions are among the services provided by the organization to the security market. Chemring has a market capitalization of more than $1.2 billion and employs over 2.300 people. The company has increased its dividend for two years in a row and has a yield of 2.17 percent. Thales S.A. is a French defense company with operations in aerospace, space, defense, security, ground transportation, and digital security. The stock has risen as European countries increase military spending in the aftermath of the Ukraine conflict. Leonardo S.p.a. is an industrial and technological company with a significant position in the defense industry. The company is well known for its helicopters, which are used for battlefield, combat, marine, training, and executive applications. For more details, click 10 European Defense Stocks To Buy Now.
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