With the world coping with multiple conflicts, companies that bolster national defense are worth looking at. One is General Dynamics Corp. (GD), a Reston, Virginia-based company with more than 100,000 employees in 70-plus countries, explains Paul Dykewicz, editor of DividendInvestor.com.
A key business unit of General Dynamics is Gulfstream Aerospace Corporation, a manufacturer of business aircraft. Other segments of General Dynamics focus on heavy mobile military equipment such as Abrams tanks, Stryker fighting vehicles, ASCOD fighting vehicles like the Spanish PIZARRO and British AJAX, LAV-25 Light Armored Vehicles, and Flyer-60 lightweight tactical vehicles.
General Dynamics Corp. (GD)
For the US Navy and other allied armed forces, General Dynamics builds Virginia-class attack submarines, Columbia-class ballistic missile submarines, Arleigh Burke-class guided missile destroyers, Expeditionary Sea Base ships, fleet logistics ships, commercial cargo ships, aircraft and naval gun systems, Hydra-70 rockets, military radios, and command and control systems. In addition, the company provides radio and optical telescopes, secure mobile phones, PIRANHA and PANDUR- wheeled armored vehicles, and mobile bridge systems.
The G700 is a major focus area for investors because it is Gulfstream’s most significant aircraft introduction since the iconic G650 in 2012. Gulfstream has the highest market share in the long-range jet segment of the private aircraft market, the biggest profit margin of aircraft peers, and the most premium business aviation brand.
G700 deliveries and subsequent G800 deliveries are expected to be the cornerstone of Gulfstream’s growth and margin expansion for the next decade. This should lead to increases in the stock price as the profit margins for the G700 and G800 are attractive.
Recommended Action: Buy GD.
