How war turned arms companies into stock market stars: Is there a chance to earn now?
An investment of 1000 euros in arms manufacturers five years ago would have grown to 11,000 euros (Rheinmetall) or 9,000 euros (SAAB) by June 30. LSM explores whether it's still a good bet in 2026.
A thousand euros invested five years ago in shares of German Rheinmetall or Swedish SAAB would have turned into 11,000 and 9,000 euros respectively by June 30 this year. These figures, while not record-breaking, illustrate how the war in Ukraine has turned arms manufacturers into stock market favorites.
The question is whether this trend will continue and if investors can still profit from defense stocks. LSM’s analysis also mentions SAF Tehnika, a Latvian communications equipment company that may be linked to the defense sector.
Analysts note that investing in arms production carries risks tied to geopolitical shifts. However, with defense spending on the rise across Europe and globally, demand for these companies’ products might remain strong in the near term.
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