Stocks experienced significant growth, with triple-digit returns for these particular investments.
Arms stocks seeing a steep rise
Got your attention? Arms stocks are experiencing a significant surge, and it's not just Rheinmetall leading the pack. The demand for arms stocks is skyrocketing, with numerous other stocks witnessing a stunning 100% increase within the last year. What's more, there's a shocking surprise in store!
Let's dive into the German arms industry powerhouse, Rheinmetall. Based in Düsseldorf, this titan's stock has skyrocketed by a whopping 160% in just a year, placing it among the top performers in the DAX in 2024. But the arms supercycle, inspired by the Ukraine war, hasn't stopped at Rheinmetall – other stocks have sailed past the 100% mark!
Palantir and Rheinmetall lead the way
Stepping into the limelight, Palantir has outshone Rheinmetall, boasting an astounding 270% growth over the last year. This tech heavyweight's exceptional performance has been showcased in a list by the platform "justETF," which evaluates the performance of 104 arms stocks across various ETFs[1].
The enrichment data reveals that alongside Rheinmetall and Palantir, other companies have managed to double their worth.
Leonardo, Howmet Aerospace, and the hidden gems
Rheinmetall's Italian competitor, Leonardo, has also reaped the benefits of increased arms expenditure, with a growth of approximately 100% within a year. Compared to Rheinmetall's P/E ratio of around 80, Leonardo's current P/E ratio of 24 makes it a relatively attractive investment[3].
Interestingly, the stock of Howmet Aerospace might prove even more intriguing, having also gained almost 100% in a year. This company supplies technological components, including connecting elements, to industrial giants like Airbus and Boeing. Boeing's struggles to manufacture new aircraft have led the company to rely heavily on older models, thus driving demand for Howmet's parts. Even in a cyclical business model, the arms boom presents fresh opportunities for Howmet[5]. The company is involved in the production of titanium components for the F-35 fighter jet and the manufacture of metallic parts for radar systems of ground and naval forces. Despite sitting somewhat in the shadows, suppliers like Howmet may soon come into the spotlight as the rally continues.
Howmet Aerospace Inc (WKN: A2PZ2D) // Interested in more? Check out: Is the market on the verge of a bursting bubble? Gloomy predictions from an insider
// Or: Up to 300% price potential: A mega-boom could catapult these stocks to new heights
Disclosure of conflicts of interest The CEO and majority shareholder of the publisher Börsenmedien AG, Herr Bernd Förtsch, holds direct and indirect positions in the following financial instruments or related derivatives that may benefit from the price development resulting from the publication: Palantir Technologies.
In the broader arms industry, Palantir has surpassed Rheinmetall, having achieved a remarkable 270% increase within the last year, as highlighted by the platform "justETF." Other companies, such as Leonardo and Howmet Aerospace, have also seen a significant rise of approximately 100% and 100% respectively, presenting potential opportunities for investing in the finance sector, notably technology-oriented stocks.
