Our Favorite Defense Stock to Buy Has Transitioned into a Tech Juggernaut

If you’ve been following our recommendations over the years, you should beam over The Boeing Co. (NYSE: BA) stock. Since the election in November 2016, shares of this defense stock are up 158%, absolutely crushing the market.

Here’s an eye-opener for you – Amazon.com Inc. (Nasdaq: AMZN) is up “only” 126% over that same span. Over the past five years, Boeing stock is up a whopping 248%.

Of course, Boeing’s reputation took a big hit in April when a passenger was tragically killed in one of its airplanes. An engine failed on a Southwest Airlines Co. (NYSE: LUV) flight, leading to the horrific accident.

Predictably, investors reacted in a negative way. But Money Morning Defense and Tech Specialist Michael A. Robinson said that turning away from Boeing would be a big mistake.

In his recent report, he made it clear the accident was a wake-up call for airlines and the manufacturers. Indeed, passengers who typically dismiss the safety warnings given before takeoff started to pay closer attention. A photo taken by a passenger on that doomed flight showed other passengers using their safety masks incorrectly. (Money Morning Executive Editor Bill Patalon also addressed this tragedy here.)

However, everyone should take note that flying in the United States is still one of the safest ways to travel. The U.S. Department of Transportation’s Bureau of Transportation Statistics reported that domestic passenger traffic reached 741.6 million in 2017. As tragic as it is to lose one life – the first one since 2009 – the safety record here is still excellent.

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Boeing itself felt the pressure from the accident, as well as news of a possible trade war with China. But within days, the company reported record earnings from aviation and growth in defense spending.

In the last month alone, this defense stock is up another 5.8%.

And demand remains incredibly strong. The company said it needs to build over 41,000 planes over the next two decades to keep up with that demand. That’s a bonanza of over $6.1 trillion.

A lot of that will be fueled by growth in Asia, thanks to a booming middle class.

But that’s not the only catalyst for Boeing stock. You see, this aerospace and defense company has transitioned itself into a full-fledged tech juggernaut…

This Defense Stock Has Become the Best Kept Secret in Tech

While everyone knows Boeing is one of the top producers of airplanes in the world, they may not fully understand that it’s also one of the top suppliers to the Pentagon. That puts it in the sweet spot as Washington looks to beef up the military.

The Boeing DefenseSpace & Security division is a leading provider of jet fighters, helicopters, and, more recently, airborne drones. This division has brought in $70 billion in sales over the past five years.

Boeing’s AH-64 Apache, for example, is the world’s most advanced multirole combat helicopter.

You’ve also probably heard of the B-52 bomber and F/A 18 Super Hornet fighter. Yep, both Boeing’s.

And not to be left out, the company bolstered its drone effort with the October 2107 purchase of Aurora Flights Sciences Corp.

But the more mundane is not forgotten, either. The company is pushing into cargo air vehicles and even aircraft servicing.

If you thought tech stocks only came from Silicon Valley, think again. With its efforts in aviation, military, drones, passenger travel, cargo delivery, and even troop travel, you can bet Boeing will be on top for decades to come.

And if that were not cool enough, Boeing was NASA’s primary contractor to develop and build the International Space Station (ISS). Even today, its space division continues to provide engineering and management under extended contracts. Why is this important? Because Washington is also thinking about privatizing the operations of the ISS.

Boeing’s financials aren’t bad, either. After leading the Dow Jones Industrial Average higher last year, Wall Street thinks there is plenty left to go. For example, Cowen and Co. has a $430 price target on the stock (it closed at $360.10 Tuesday), calling it undervalued.

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