Which stock is your favorite? 🛡️✈️

The sector remains extremely in focus due to the ongoing geopolitical dynamics and rising European defense budgets. But where do you currently see the best risk/reward ratio?

$RHM (-0,45 %)

$HAG (-1,26 %)

$LDO (-1,85 %)

#armament #rheinmetall #hensoldt #leonardo #shares #invest #portfolio

Today we are not going to look at a single share, but take a look in a completely different direction. Into the defense sector.

Of course, the most well-known Etf in this sector, the VanEck Defense UCITS Etf, has caught my eye. Its annual performance is around 50%, and it has already posted a return of around 15% this year.

So today we want to take a closer look at what it really contains and whether an investment would be worthwhile, purely on the basis of the fundamental data.

$DFEN (-0,5 %)

The fund volume currently amounts to €7.278 billion with annual costs of 0.55%. The Etf is an accumulating fund.

Company distribution:

Palantir Technologies 8% $PLTR (-0,78 %)

RTX Corporation 8% $RTX (-0,07 %)

Thales 7% $HO (-0,84 %)

Leonardo- Finmeccania 7% $LDO (-1,85 %)

Hanwha Aerospace Co Ltd ORD 6% $012450

Elbit Systems 6% $ESLT (+1,49 %)

Saab 6% $SAAB B (-0,59 %)

Curtiss Wright 5% $CW (-1,75 %)

Leidos 4% $LDOS (+0,14 %)

=57%

The remaining 43% is distributed in smaller shares among other companies, such as Planet Labs $PL (-9,45 %) (approx. 2%) or Ondas $ONDS (-6,01 %) (1%).

Country distribution:

USA 49%

South Korea 11%

Europe 30%

Israel 7%

Singapore 3%

1 Palantir Technologies (USA)

Conclusion: Palantir is not a normal stock

Palantir has developed impressively from a speculative bet to a fundamental force in the S&P 500. The company is more profitable than ever before: massive profit and sales growth meets software margins that are unparalleled in the industry.

But quality has its price on the stock market: this success has already been fully recognized and priced in by the market. With a current P/E ratio of almost 300, the share is extremely expensive and leaves little room for disappointment. Palantir is therefore a highly profitable, exceptional company, but its valuation already anticipates the perfection of the coming years.

This can also be clearly seen in the analysts' estimates: some say there is still plenty of room for improvement with a price target that is almost twice as high, while others say the fair value is half the current price.

That's why I personally can't really get on board with Palantir. The share as a whole is not a buy for me at the moment.

2. RTX corporation(USA)

Conclusion: RTX - The operational bulwark

RTX (formerly Raytheon) is the definition of stability and predictability in April 2026. With a gigantic order backlog of USD 268 billion, the business is secured for years to come. The company has solved the technical problems of the past and is now converting its dominant position in aerospace and defense into record-breaking cash flows.

While Palantir thrives on the AI fantasy, RTX delivers the physical reality: a moderate P/E ratio of around 36 compared to Palantir, rising dividends and a fundamental safety that is rare in the current market environment. It is not a speculative high-flyer, but a highly profitable basic investment for the security age.

However, perfection is priced in here with very high valuation premiums, so I am also skeptical.

3. thales (France)

Conclusion: Thales - the European "all-rounder"

Thales established itself as the technological backbone of European defense and digital infrastructure in April 2026. With a record order backlog of over EUR 53 billion, the company offers "visibility" for production that extends well beyond 2028.

- Financial performance: 2025 closed with sales of EUR 22.1 billion (+9% organic) and record cash flow. The target for 2026 is clearly defined: A jump in sales to up to EUR 23.6 billion with an improved EBIT margin of around 12.7 %.

- Strategic breadth: Unlike pure defense companies, Thales benefits from three engines simultaneously:

Defense: massive growth through the modernization of European armies.

Aerospace: The recovery in civil aviation is driving demand for avionics.

Cyber & Digital: Through the integration of Imperva, Thales is now one of the world's largest players in the field of data security - a market that is growing completely independently of military budgets.

With a Kgv of 29, we find the most favorably valued company to date.

4 Leonardo Finmenncania (Italy)

Conclusion: Leonardo - the efficiency champion

Leonardo is the "value tip" among the large defense stocks in April 2026. While competitors such as Rheinmetall or Palantir often struggle with extremely high valuations, Leonardo has done its homework in terms of profitability and is now benefiting massively from the European arms race.

- Financial turnaround: Leonardo has beaten all expectations with its figures for 2025. Sales rose to EUR 19.5 billion (+11%), while operating profit (EBITA) increased by a strong 18%. Particularly impressive: net debt was almost halved, giving the Group massive scope for new investments.

- Strategic focus: Under the new industrial plan (2026-2030), Leonardo is fully committed to digitalization and cyber security. With the "Michelangelo" project (an AI-supported air defense system), Leonardo occupies a lucrative niche in the NATO security architecture.

- Valuation as a trump card: Despite a share price rally of almost 190% since 2024, the share is still "reasonably" valued compared to the sector with a forward P/E ratio of around 27. It is significantly cheaper than many US rivals, although Leonardo has similar growth rates for incoming orders (+15%).

We have now briefly analyzed the 4 largest companies in this ETF, which account for around 30%.

How do you rate these companies? Please take a look at the other companies that have not been presented here.

And of course, are you invested in the etf or do you intend to be?

Would it be an investment case for you or do you think the defense sector is largely overvalued?

@Raketentoni
@Tenbagger2024
@Get_Rich_or_Die_Tryin
@Multibagger etc. ....

The EU wants to support its member states with arms loans. Poland's nationalist President Karol Nawrocki sees this as a threat to Poland's sovereignty.

The law in question had previously been passed by Prime Minister Donald Tusk's centre-left coalition and was intended to allow Poland to take out loans of 44 billion euros from the EU to modernize and arm its military.

As part of the so-called Safe Program (Security Action for Europe), the EU is offering low-cost loans totalling 150 billion euros to its member states to help them finance increased arms spending in order to arm themselves against a more aggressive Russia.

The SAFE program in Poland becomes a symbol of the conflict between the government camp and the president.

What does this mean for the arms industry?

$RHM (-0,45 %)

$HAG (-1,26 %)

$DE000TKMS001 (-0,37 %)

$HO (-0,84 %)

$LDO (-1,85 %)

How do you see the veto?

So long

The military escalation between the USA, Israel and Iran is causing strong market movements worldwide. Investors are shifting out of cyclical sectors and into security, energy and defense.

_________________________

Bitcoin $BTC (-0,37 %) shows surprising stability

• 📈 In the meantime +8,1 %
• 💰 Just over 70,000 dollars
• Stabilization at around 69,000 dollars

Despite geopolitical risks, Bitcoin is apparently being used as a liquidity parking lot in the short term. At the same time, volatility remains high - further escalations could trigger new spikes.

_________________________

🛢 Oil prices up significantly

• Brent: + just under 6 %
• WTI: + a good 5 %
• In the meantime even +13 %

According to the report, the USA is currently no release from the strategic oil reserve. The market is still considered to be supplied, but the situation remains tense.

_________________________

🏦 Banks under pressure

The European banking index loses around 3,5 % - sharpest decline since April 2025.

Particularly affected:

• HSBC - $HSBA (+0,17 %)
• Barclays - $BARC (-0,44 %)
• Standard Chartered - $STAN (-0,75 %)
• Deutsche Bank - $DBK (-0,69 %)
• BNP Paribas - $BNP (-0,64 %)
• BBVA - $BBVA (+0,72 %)
• Commerzbank - $CBK (-0,01 %)

In the USA also weaker until the US opening:

• Bank of America - $BAC (+0,63 %)
• Citigroup - $C (-0,68 %)

Reason: Strong Middle East business of many institutions and general risk aversion of investors.

_________________________

✈️ Travel industry collapses

High oil prices and uncertainty weigh heavily on tourism stocks:

• TUI - $TUI1 (+0,08 %) (-11 %)
• Lufthansa - $LHA (-0,6 %) (-11 %)

Flights to the region are canceled, travel offers suspended. Investors fear rising costs and falling booking figures.

_________________________

💎 Luxury stocks clearly in the red

The European luxury index loses almost 4 %.

Strongly affected:

• Richemont - $CFR (+0,5 %)
• Swatch - $UHR (-2,26 %)
• LVMH - $MC (+1,51 %)
• Hermès - $RMS (+1,16 %)
• Kering - $KER (+0,55 %)
• Brunello Cucinelli - $BC (-0,64 %)
• Moncler - $MONC (+1,99 %)
• Ferragamo - $SFER (+1,16 %)

Background:

Luxury is heavily dependent on global travel. Capital flows out of cyclical stocks.

_________________________

🛡 Defense stocks as clear winners

Geopolitical tensions drive up defense stocks:

• BAE Systems - $BA. (+0,23 %)
• Lockheed Martin - $LMT (+1,17 %)
• RTX - $RTX (-0,07 %)
• Kratos - $KTOS (-4,17 %)
• Hensoldt - $HAG (-1,26 %)
• Leonardo - $LDO (-1,85 %)
• Renk - $R3NK (-2,26 %)
• Rheinmetall - $RHM (-0,45 %)

Partial price increases of 3-6 %.

The focus is particularly on missile defense systems and possible increases in defense budgets.

_________________________

🚢 Shipping companies benefit

Transport values increase due to detour (avoidance of Hormuz, Suez Canal & Bab al-Mandab):

• Maersk - $MAERSK A (+0,23 %)
• Hapag-Lloyd - $HLAG (+0,16 %)
• Torm - $TRMD A (+1,24 %)
• Frontline - $FRO (-0,3 %)
• Hoegh Autoliners $HAUTO (+0,56 %)

Reason: Shortage of transport capacity and speculation on rising freight rates.

_________________________

🥇 Gold in demand

• Gold price: +2,5 %

Profiteers in mining stocks:

• Evolution Mining - $EVN (-6,81 %)
• Northern Star - $NST (-2,04 %)

The sector has been showing relative strength for several days.

$4GLD (-1,66 %)
$GOLD
$GOLD (-3,45 %)

_________________________

📊 Market logic clearly recognizable

Winner:

🛡 Armaments

🚢 Shipping companies

🥇 Gold

₿ Bitcoin (short-term)

Losers:

🏦 Banks

✈️ Travel

💎 Luxury

_________________________

🔎 Conclusion

The market reaction follows the classic pattern of geopolitical crises:

• Risk is reduced
• Capital seeks security
• Energy prices rise
• Defense stocks benefit

The decisive factor remains whether the situation eases diplomatically - or escalates further.

_________________________

Source:

Reuters: Anleger greifen bei Bitcoin als "Fluchtvehikel" zu (Via TradingView)

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