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President-elect Donald Trump has promised to improve border security and build a wall between the United States and Mexico. And that has led us to one of the best stocks to buy now before he’s sworn into office.
There’s a huge new opportunity for defense stocks before Trump’s sworn in, according to Money Morning Director of Tech & Venture Capital Research Michael A. Robinson.
“Forget about the Bill Clinton peace dividend. Forget about wartime footing under George W. Bush. And certainly forget about our walking away from the role of world’s policeman under Barack Obama,” Robinson said on Nov. 10.
U.S. defense spending is already incredibly high, with a $600 billion defense budget for 2015.
According to Business Insider, that’s more than the defense spending of the next seven highest-spending countries combined.
So no matter if border security includes a full wall, partial wall, or more fencing, defense spending will still be high.
“There is little doubt that under a President Trump, the U.S. military will go on one of its biggest growth periods in decades,” Robinson said.
You see, securing U.S. borders isn’t just about building a wall.
Securing the borders also involves utilizing cybersecurity, combat systems, drones, surveillance, and reconnaissance equipment.
The proposed Department of Defense (DoD) budget for 2017 is already $582 billion. And Robinson believes that another $34 billion will be added for weapons exports, making defense “as strong and steady as any business could hope for.”
According to Forbes, Trump’s plans to increase Air Force fighters, missile systems, and soldiers could cost $500 billion to $1 trillion.
Not to mention that the wall itself is estimated to cost between $12 billion to $25 billion.
The best stock to buy now that Robinson recommends is relied upon heavily by the military for its services. And it’s up 15% since Robinson recommended it back in April.
Now that military spending will increase, this stock should continue to climb. This is one of the best stocks to buy now before Trump is sworn in on Jan. 20, 2017…
One of the Best Stocks to Buy Now Under President Trump
One of the best stocks to buy before Trump becomes president is Northrop Grumman Corp. (NYSE: NOC).
“Now that Trump is president, his border wall will be built by companies like Northrop Grumman who can deploy all the various resources to secure the border and secure the communications,” Robinson said.
Northrop Grumman can provide border protection through its Electronic Systems division. This division provides…
- Radar systems
- Navigation sensors
- Secondary surveillance systems
- Electronic warfare systems
- Air defense systems
- Precision weapons
Northrop Grumman can also provide cybersecurity to make sure important border patrol information remains safe.
And the demand for Northrop Grumman’s services doesn’t stop with border patrol…
In October 2015, the defense contractor received the largest contract (estimated at $55 billion to $80 billion) in history for its B-21 Raider.
The long-range bomber will replace the current B-52 and B-2 bombers used by the Air Force, which have been used since the Cold War. Just one B-21 Raider costs $500 million, and the DoD ordered between 80 to 100.
Even though the defense budget has been cut from $681 billion in 2012 to $637 billion in 2015 — a 6.4% decrease — the Northrop Grumman stock price has still climbed.
Over the last 12 months, the NOC stock price is up 40.90%. In comparison, the S&P 500 is up just 6.62%.
With President-elect Trump focused on increasing military spending, Robinson said that this recommendation is “already off to the races.”
The Bottom Line: One of the best stocks to buy now before President-elect Trump is sworn in is Northrop Grumman. To keep borders secure, Trump will need to invest in radar, navigation surveillance, and cybersecurity systems. Robinson believes the U.S. military will record one of its biggest growth periods in decades, which could send the NOC stock price skyrocketing in the next few years.