From Yahoo Finance: 2025-03-31 14:09:00

Global defense spending reached a record high of $2.46 trillion in 2024, driven by budget increases in Asia, Europe, the Middle East, and North Africa. The defense industry has seen a surge in stock prices, with top contractors hitting all-time highs. European and Asian defense stocks are thriving, while American stocks lag due to budget concerns.

Despite a slow start in 2025, UBS analysts are optimistic about the defense sector, stating that downside risks are diminishing. Citi analyst Jason Gursky recommends buying American defense stocks, emphasizing the importance of maintaining deterrence tools. Recent developments, including a new fighter jet and focus on shipbuilding, are boosting investor interest in US defense stocks.

Hexcel Corporation (NYSE:HXL) is a leading provider of advanced lightweight composites for commercial aerospace, defense, and industrial applications. Despite a 3% drop on Friday due to concerns about Airbus A350 production, Hexcel saw a 0.99% weekly gain. Insiders have been increasing their holdings, reflecting confidence in the company’s future.

Hexcel Corporation (NYSE:HXL) ranks 9th among defense stocks gaining this week. While defense companies show promise, AI stocks are seen as having greater potential for higher returns in a shorter time frame. Investors interested in AI stocks can explore options with significant upside potential at less than 5 times earnings.

Read more: Why Hexcel Corporation (HXL) Is Gaining This Week?