With the US Short on Javelins, Keep an Eye on this Defense Company

by | May 9, 2022 | Stocks to Watch

Keep an eye on Lockheed Martin (LMT) and Raytheon Technologies (RTN).

Both make the Javelin missiles, which the U.S. is now running low on.

In fact, according to Rep. Mike Gallagher (R -Wisconsin), as quoted by Zero Hedge:

We just burned through seven years of Javelins and that’s not only important as we continue to try and help the Ukrainians win in Ukraine, that’s important as we try to simultaneously defend Taiwan from aggression from the Chinese Communist Party. They are going to need access to some of these same weapons systems, and we simply don’t have the stockpiles at present in order to backfill what we’ve spent in Ukraine.

To help, Lockheed Martin CEO Jim Taiclet recently said Javelin production would double from 2,100 missiles a year to 4,000… and that it needs to crank up its supply chain.  

In addition, as noted by Reuters: “We can start turning up the heat now and ramping up production immediately,” Taiclet said, noting the firm is anticipating increased demand for ‘superior systems in large enough numbers.’”

At the moment, shares of LMT are down about $10.61 with the broader market.  However, investors may want to use this weakness as a potential opportunity.

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