Penny Stocks in Defense: Arotech Could Rally

Penny stocks

Penny stocks in defense could be a portfolio maker. The reason?

America. It loves its defense (and I’m not just talking about football here). To give you an idea, military spending in the US is expected to account for over 55% of all federal discretionary spending in 2018.

And how much does that total? A massive $639.1 billion USD. Yes, America loves its defense. Almost as much as it loves its attacking.

So penny stocks in defense may be very cheap, but they may have a bright future ahead. One such example is Arotech (NASDAQ:ARTX).

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Penny Stocks in Defense

Currently selling for $2.74 USD, this penny stock is going through somewhat of a downward spiral; six months ago, the ARTX penny stock was trading at around $4.

And looking back at the company’s profits in recent years, well, there hasn’t been much.

But the penny stock company also didn’t have Donald Trump in its corner. And moving into 2019, Arotech has some pretty interesting fundamentals and a US President obsessed with defense and a drive that is sending this sector skyward.

>> Tech Stocks to Watch in 2019: Patriot One Technologies

The US has upped its budget on military, and when countries do this, defense contractors tend to win big. Boeing (NYSE:BA) is one such example of a winner.

Arotech Could Win

Arotech has yet to catch wind of this success. And because of this, there is no denying that there is a risk with this penny stock. 

But here’s the good news, the company’s profits are stabilizing. Coming from a place of negative profits, this is a good sign. The next logical step in the ladder is, of course, to go from stabilizing to growth. If Arotech can do this, then its stock should mimic the growth and go up.

So the question is, is Arotech late to the defense party but about to make the biggest entrance? At a low price of $2.74, some could say it’s a good time to check the stock out, as the defense sector continues to increase. The ARTX penny stock might rally soon.

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