As national security threats continue to develop, security technology must as well. Every day people are left wondering if we can stop the next big mass casualty event. Thankfully, both the government and private companies are looking to do just that.
One of the biggest catalysts for defense and security stocks is the US government is controlled by the Republican party. The US spends more on defense than every other country on the planet and it only gets enhanced under Republican leadership. Defense spending has increased by 5.3% over the last year with the passing of a $717 billion defense budget in Congress. New companies will look to develop and advance their defense and security products with government funding and contracts.
Defense companies have seen all-time highs this year thanks to their ability to generate a consistent cash flow and management style. They provide increases in dividends and enact stock buyback plans. For icing on the cake, Trump is encouraging other countries to beef up their defenses which is promoting further growth.
Security Company Looking to Feed on Strong Defense Spending – Liberty Defense Holdings (SCAN.V)
Liberty Defense Holdings Ltd. (SCAN.V) is a security company that is looking to shape the way we implement security. The company is developing its revolutionary technology known as HEXWAVE. The technology utilizes 3D imaging that can identify any type of weapon in a non-intrusive and fast manner. Liberty is looking to test the product in Utah as discussed on FOX news on May 23rd.
Recently the company announced the addition of Mit Shah to its Board of Advisors. Mr. Shah is the CEO and founder of Noble Investment Group which specializes in real estate investment.
Bill Riker, CEO of Liberty, stated, “Further, Mr. Shah’s connections through the lodging and sports industry will further help with the deployment of HEXWAVE, having Mit’s support of Liberty and HEXWAVE is further validation that we are on the right path in addressing the needs of the urban security market.”
The demand is present and Liberty Defense Holdings Ltd. (SCAN.V) has already inked two Memorandums of Understanding for beta testing of HEXWAVE, which is expected to commence this year! With Canada’s Rogers Arena, Vancouver’s large-scale venues and Sleiman Enterprises, one of Florida’s largest real estate companies developing and managing malls, hotels, and shopping centers, Liberty Defense Holdings Ltd. (SCAN.V) has created a strong pipeline of premier customers.
With the potential technology to revolutionize the standards of security, Liberty Defense Holdings Ltd. (SCAN.V) is seeking to become a market leader and take a seat at the table with companies like major government contractor L3 Technologies (LLL) who provides detection and security systems for U.S. Department of Defense, Homeland Security and foreign governments or leading tech innovator Harris Corp. (HRS) which supports government and commercial customers in over 100 countries. Liberty Defense Holdings Ltd. (SCAN.V) may provide investors with the opportunity to take part in this rapidly growing market early on.
Aerospace and Defense Eyeing the Prize – Northrop Grumman (NOC)
Northrop Grumman Corp. (NOC) is a leader in aerospace defense contracts and development of cybersecurity. This company has the eyes of many investors thanks to a strong history of beating analyst projections. While Trump tweets and tariffs harm most companies, Northrop has shown they can move around in the hardest political environments thrown at them. While their stock has recently gotten weaker, the company may still be quite promising.
Management is focusing on aggressively raising the dividend, with a target on delivering returns to shareholders. Analysts from Argus say, “The
shares are a suitable core holding for a diversified portfolio,” based on the current climate and NOC market conditions. Of course, time will be the best judge of that projection. However, as defense spending continues to ramp up in a softer period of economic growth, companies in this industry may be just the ones to pay closer attention to.