Latest news with #Sequestration
Yahoo
02-04-2025
- Business
- Yahoo
Is Draganfly Inc. (DPRO) Among the Worst Performing Defense Stocks So Far in 2025?
We recently published a list of the 10 Worst Performing Defense Stocks So Far in 2025. In this article, we will take a look at where Draganfly Inc. (NASDAQ:DPRO) stands against other worst performing stocks this year. US defense stocks have wobbled this year, amid concerns about government budget cuts. In February, President Trump hinted at significantly reducing future military spending if things settle down with China and Russia. The creation of DOGE has also reshaped investors' views of the industry. READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 13 Best Defense Stocks to Buy According to Billionaires. Elsewhere, particularly in Europe, stocks have soared this year, with governments unlocking billions to supercharge their militaries. EU leaders met in Brussels in March to discuss the 'ReArm Europe Plan', which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending. Despite a shaky start to 2025, analysts at UBS are hopeful about America's defense sector and believe the downside is shrinking and the FY26 budget request would present a better visibility into long-term expenditure plans. Here is what the firm recently stated: 'Consensus estimates have moved higher since the election despite the 40% sell-off. The downside potential seems increasingly smaller. We believe that the current environment is markedly different from Sequestration and do not believe a similar outcome is likely.' Citi analyst Jason Gursky is also urging investors that this is the right time to buy American defense stocks. 'We recognize the world order is evolving under the current President, perhaps to a multi-polar one in which three countries control spheres of influence over the Americas, Europe and Asia. However, we don't view that world to be any less dangerous or one that decreases the need to acquire the tools of deterrence.' Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector. Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector. A stock image of a colorful array of unmanned aerial vehicles flying up towards the sky. For this article, we went through screeners to identify stocks in the aerospace and defense industry. From there, we picked the top 10 stocks with the worst year-to-date negative returns in share price, as of the close of business on March 26, 2025. Pure-play aerospace stocks that do not deal in defense contracts have been excluded from the list. The stocks are ranked according to their share price decline. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). YTD Decline in Share Price: -23.69% Draganfly Inc. (NASDAQ:DPRO) develops cutting-edge unmanned and remote data collection and analysis platforms and systems. It is one of the worst performing stocks in 2025, with a 23.69% decline in its share price this year. During its Q4 2024 earnings call, Draganfly Inc. (NASDAQ:DPRO) reported a modest increase of 0.1% in its revenue for FY24 as its capacity to meet military and public safety demand did not come to full stream until late Q3. Gross profit also decreased by 32.3% from the prior year. The gross margin stood at 21.3%, compared to 31.5% in 2023. Draganfly Inc. (NASDAQ:DPRO) recorded a net loss of $14.06 million for the full year. While this was an improvement from last year, the company is not expected to achieve profitability until 2026. Cash used in operating activities was down 37% year over year. It ended the year with a cash balance of a little over $6.25 million. The company has recently appointed former Acting U.S. Secretary of Defense, Chris Miller, to its Board of Directors. As a seasoned national security expert, Miller is expected to guide Draganfly Inc. (NASDAQ:DPRO)'s strategic initiatives in the government and defense sectors. In March, the company also announced the opening of its new facility in Tampa, Florida, to strengthen national security and defense partnerships. It is strategically located close to major government and military clients and includes a live fire testing facility. Overall, DPRO ranks 10th among the worst performing defense stocks so far in 2025. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DPRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
02-04-2025
- Business
- Yahoo
Why Northrop Grumman Corporation (NOC) Is Gaining This Week?
We recently published a list of Why These Defense Stocks Are Gaining This Week. In this article, we will take a look at where Northrop Grumman Corporation (NYSE:NOC) stands against other defense stocks gaining this week. According to The International Institute for Strategic Studies (IISS), global defense spending soared to a record high of $2.46 trillion in 2024, amid major budget increases in Asia, Europe, the Middle East, and North Africa due to deteriorating security environments and threat perceptions. Easing inflation in different parts of the world also allowed countries to invest in and bolster national defense. READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 13 Best Defense Stocks to Buy According to Billionaires. The world has been rocked with deadly conflicts over the last few years, with Ukraine and the Middle East being the most affected regions. While the human impact of these wars has been tragic, the defense industry has profited by luring investors into piling up their stocks, with several of the world's top contractors seeing their shares book all-time highs in 2024. Defense stocks across the world are continuing to witness an unprecedented bull run as European capitals unlock billions to supercharge their militaries. Stocks in Europe have rallied this year, with several companies in the sector registering double-digit returns. Asian contractors in South Korea and India are also benefiting from the splurge. In contrast, American defense stocks have been subdued this year and have failed to capitalize on the global rally due to concerns about budget cuts under the new administration. Last month, President Trump hinted at significantly reducing future military spending if things settle down with China and Russia. The creation of DOGE has also reshaped investors' views of the industry. Despite a shaky start to 2025, analysts at UBS are optimistic about the sector as they believe the downside is shrinking. Here is what the firm recently stated: 'Consensus estimates have moved higher since the election despite the 40% sell-off. The downside potential seems increasingly smaller. We believe that the current environment is markedly different from Sequestration and do not believe a similar outcome is likely.' Citi analyst Jason Gursky, in a note to clients on March 5, also urged investors about this being the right time to buy American defense stocks. While the analyst acknowledged the world may be heading toward a multi-polar order, he argued that it was no less dangerous to decrease the need for tools of deterrence. Two recent developments are reinvigorating investor interest in US defense stocks. Trump has unveiled a new next-generation fighter jet, the F-47, to replace the F-22 Raptor. He has also announced to resurrect America's military and commercial shipbuilding industry, which he sees as vital to national security, given the strategic competition with China. With that said, let's now head over to the list of defense stocks that are gaining this week. Please note that the stocks listed are based on one week's performance. Our analysis does not reflect the prospects of the company. Their share price could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company's capabilities. Additional research and caution are advised before making investment decisions. An aeronautics engineer inspecting a model aircraft engine in a factory setting. For this article, we went through screeners to see how stocks in the aerospace and defense industry performed over the past week (March 24-28). From there, we picked the top 10 defense stocks with the highest percentage gains in share price during this period. All data is as of the close of business on Friday, March 28, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Weekly Gains: 4.38% Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. It is manufacturing the B-21 Raider for the United States Air Force (USAF). On March 18, the company clinched a follow-on contract from the USAF to connect airborne platforms with faster and secure communications. Under the contract, Northrop Grumman Corporation (NYSE:NOC) will deliver the NG InSight processor, which will keep warfighters connected and adaptable in complex mission environments. This week, RBC Capital upgraded the stock's rating from Sector Perform to Outperform and also raised its price target from $500 to $575 per share. With returns of 4.38% since Monday, Northrop Grumman Corporation (NYSE:NOC) is among the defense stocks gaining this week. Overall, NOC ranks 2nd among the defense stocks that are gaining this week. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Why TransDigm Group Incorporated (TDG) Is Gaining This Week?
We recently published a list of Why These Defense Stocks Are Gaining This Week. In this article, we will take a look at where TransDigm Group Incorporated (NYSE:TDG) stands against other defense stocks gaining this week. According to The International Institute for Strategic Studies (IISS), global defense spending soared to a record high of $2.46 trillion in 2024, amid major budget increases in Asia, Europe, the Middle East, and North Africa due to deteriorating security environments and threat perceptions. Easing inflation in different parts of the world also allowed countries to invest in and bolster national defense. READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 13 Best Defense Stocks to Buy According to Billionaires. The world has been rocked with deadly conflicts over the last few years, with Ukraine and the Middle East being the most affected regions. While the human impact of these wars has been tragic, the defense industry has profited by luring investors into piling up their stocks, with several of the world's top contractors seeing their shares book all-time highs in 2024. Defense stocks across the world are continuing to witness an unprecedented bull run as European capitals unlock billions to supercharge their militaries. Stocks in Europe have rallied this year, with several companies in the sector registering double-digit returns. Asian contractors in South Korea and India are also benefiting from the splurge. In contrast, American defense stocks have been subdued this year and have failed to capitalize on the global rally due to concerns about budget cuts under the new administration. Last month, President Trump hinted at significantly reducing future military spending if things settle down with China and Russia. The creation of DOGE has also reshaped investors' views of the industry. Despite a shaky start to 2025, analysts at UBS are optimistic about the sector as they believe the downside is shrinking. Here is what the firm recently stated: 'Consensus estimates have moved higher since the election despite the 40% sell-off. The downside potential seems increasingly smaller. We believe that the current environment is markedly different from Sequestration and do not believe a similar outcome is likely.' Citi analyst Jason Gursky, in a note to clients on March 5, also urged investors about this being the right time to buy American defense stocks. While the analyst acknowledged the world may be heading toward a multi-polar order, he argued that it was no less dangerous to decrease the need for tools of deterrence. Two recent developments are reinvigorating investor interest in US defense stocks. Trump has unveiled a new next-generation fighter jet, the F-47, to replace the F-22 Raptor. He has also announced to resurrect America's military and commercial shipbuilding industry, which he sees as vital to national security, given the strategic competition with China. With that said, let's now head over to the list of defense stocks that are gaining this week. Please note that the stocks listed are based on one week's performance. Our analysis does not reflect the prospects of the company. Their share price could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company's capabilities. Additional research and caution are advised before making investment decisions. An aerial view of an aircraft factory, showing a flurry of activity on the factory floor. For this article, we went through screeners to see how stocks in the aerospace and defense industry performed over the past week (March 24-28). From there, we picked the top 10 defense stocks with the highest percentage gains in share price during this period. All data is as of the close of business on Friday, March 28, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Weekly Gains: 2.31% TransDigm Group Incorporated (NYSE:TDG) is an aerospace company that manufactures engineered aircraft components for commercial and military aircraft. With returns of 2.31% since March 24, it is among the defense stocks gaining this week. On March 25, Wells Fargo raised TransDigm Group Incorporated (NYSE:TDG)'s price target from $1,500 to $1,580 per share, while maintaining the Overweight rating for the stock. The company is also in the news for being among the final bidders for Boeing's navigation unit. According to a report on Reuters this Friday, TransDigm Group Incorporated (NYSE:TDG) is competing with several private equity firms to buy the Jeppesen unit for more than $8 billion. Overall, TDG ranks 3rd among the defense stocks that are gaining this week. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TDG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Is ParaZero Technologies Ltd. (PRZO) Among the Worst Performing Defense Stocks So Far in 2025?
We recently published a list of the 10 Worst Performing Defense Stocks So Far in 2025. In this article, we will take a look at where ParaZero Technologies Ltd. (NASDAQ:PRZO) stands against other worst performing stocks this year. US defense stocks have wobbled this year, amid concerns about government budget cuts. In February, President Trump hinted at significantly reducing future military spending if things settle down with China and Russia. The creation of DOGE has also reshaped investors' views of the industry. READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 13 Best Defense Stocks to Buy According to Billionaires. Elsewhere, particularly in Europe, stocks have soared this year, with governments unlocking billions to supercharge their militaries. EU leaders met in Brussels in March to discuss the 'ReArm Europe Plan', which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending. Despite a shaky start to 2025, analysts at UBS are hopeful about America's defense sector and believe the downside is shrinking and the FY26 budget request would present a better visibility into long-term expenditure plans. Here is what the firm recently stated: 'Consensus estimates have moved higher since the election despite the 40% sell-off. The downside potential seems increasingly smaller. We believe that the current environment is markedly different from Sequestration and do not believe a similar outcome is likely.' Citi analyst Jason Gursky is also urging investors that this is the right time to buy American defense stocks. 'We recognize the world order is evolving under the current President, perhaps to a multi-polar one in which three countries control spheres of influence over the Americas, Europe and Asia. However, we don't view that world to be any less dangerous or one that decreases the need to acquire the tools of deterrence.' Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector. Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector. A financial planner analysis their portfolio and making decisions on stocks and assets. For this article, we went through screeners to identify stocks in the aerospace and defense industry. From there, we picked the top 10 stocks with the worst year-to-date negative returns in share price, as of the close of business on March 26, 2025. Pure-play aerospace stocks that do not deal in defense contracts have been excluded from the list. The stocks are ranked according to their share price decline. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). YTD Decline in Share Price: -58.16% ParaZero Technologies Ltd. (NASDAQ:PRZO) is an Israel-based aerospace company that provides safety systems for defense counter-UAS systems and commercial unmanned aircraft. On March 27, the company announced that it had signed a non-binding letter of intent to acquire Lulav Space Ltd., which specializes in counter-drone systems and autonomous drone technologies. The proposed acquisition is likely to close during the second quarter of the year and would add advanced space technologies and deep-space navigation expertise to ParaZero Technologies Ltd. (NASDAQ:PRZO)'s portfolio. Earlier in the month, the company declared financial results for the fiscal 2024. ParaZero Technologies Ltd. (NASDAQ:PRZO) reported a 50.2% increase in its sales to $0.93 million, driven by a shift toward OEMs integrations that contributed a higher volume of sales compared to the aftermarket segment. Cost of sales increased by 83.3% from last year due to an inventory write-off and a surge in the volume of sales during the year. Research and development expenses were up by 237% year-over-year, while sales and marketing expenses grew 121.6% from last year. ParaZero Technologies Ltd. (NASDAQ:PRZO)'s net loss was recorded at $11 million, worsening significantly from a loss of $3.77 million in 2023. ParaZero Technologies Ltd. (NASDAQ:PRZO)'s shares have slumped by over 58% year-to-date, earning it a place in the list of the worst performing stocks this year. The stock risks another non-compliance notice from NASDAQ with a potential delisting warning, as its minimum bid price has again fallen below the $1 mark after regaining compliance in December. Overall, PRZO ranks 3rd among the worst performing defense stocks so far in 2025. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PRZO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Is KWESST Micro Systems Inc. (KWE) Among the Worst Performing Defense Stocks So Far in 2025?
We recently published a list of the 10 Worst Performing Defense Stocks So Far in 2025. In this article, we will take a look at where KWESST Micro Systems Inc. (NASDAQ:KWE) stands against other worst performing stocks this year. US defense stocks have wobbled this year, amid concerns about government budget cuts. In February, President Trump hinted at significantly reducing future military spending if things settle down with China and Russia. The creation of DOGE has also reshaped investors' views of the industry. READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 13 Best Defense Stocks to Buy According to Billionaires. Elsewhere, particularly in Europe, stocks have soared this year, with governments unlocking billions to supercharge their militaries. EU leaders met in Brussels in March to discuss the 'ReArm Europe Plan', which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending. Despite a shaky start to 2025, analysts at UBS are hopeful about America's defense sector and believe the downside is shrinking and the FY26 budget request would present a better visibility into long-term expenditure plans. Here is what the firm recently stated: 'Consensus estimates have moved higher since the election despite the 40% sell-off. The downside potential seems increasingly smaller. We believe that the current environment is markedly different from Sequestration and do not believe a similar outcome is likely.' Citi analyst Jason Gursky is also urging investors that this is the right time to buy American defense stocks. 'We recognize the world order is evolving under the current President, perhaps to a multi-polar one in which three countries control spheres of influence over the Americas, Europe and Asia. However, we don't view that world to be any less dangerous or one that decreases the need to acquire the tools of deterrence.' Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector. Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector. A technician running a complex system check in the quality control of a new product. For this article, we went through screeners to identify stocks in the aerospace and defense industry. From there, we picked the top 10 stocks with the worst year-to-date negative returns in share price, as of the close of business on March 26, 2025. Pure-play aerospace stocks that do not deal in defense contracts have been excluded from the list. The stocks are ranked according to their share price decline. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). YTD Decline in Share Price: -55.26% KWESST Micro Systems Inc. (NASDAQ:KWE) is engaged in the development of tactical systems and ammunition for military and security forces. It is among the worst performing stocks in 2025, with its share price plunging by more than 55% this year. KWESST Micro Systems Inc. (NASDAQ:KWE)'s share price has slumped this year amid pressures to regain compliance with NASDAQ's listing requirements. In November last year, NASDAQ extended the stock's listing for another 180 days, giving it until May 12, 2025, to regain compliance with the minimum $1 per share price requirement. As of the close of business on March 26, KWE was trading at $0.313 per share. On March 18, the company stated that it had filed a notice to convene a special meeting of shareholders on March 31 to seek approval of a resolution to authorize the consolidation of issued and outstanding shares of the company on the basis of 1-for-25 shares. This is a crucial compliance measure as KWESST Micro Systems Inc. (NASDAQ:KWE) faces potential delisting in May. In the midst of chaos, there was positive news last week for KWESST Micro Systems Inc. (NASDAQ:KWE) as it announced the expansion of its manufacturing facilities into the US through a strategic partnership with Nordon Inc. to commence tooling for the scaled production of components under the ARWEN brand. The two parties will work towards an agreement outlining the terms of a long-term contract manufacturing by June this year. According to Insider Monkey's database for Q4 2024, 3 hedge funds held a stake in the company, a meagre improvement from 2 at the end of the third quarter. Overall, KWE ranks 4th among the worst performing defense stocks so far in 2025. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KWE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
