Given the uncertain global geopolitical environment—with emerging threats from countries such as China and Russia—the Biden administration plans to invest more in advanced military hardware. This should be good news for Airbus (EADSY), and Boeing (BA). Which stock is better to buy right now? You can read more about Airbus SE (OTC) in Leiden. The company designs, produces, and distributes international aerospace products and services. Airbus SE (OTC:) operates in three divisions: Airbus Helicopters, Airbus Defense and Space and Airbus Helicopters. The Boeing Company (NYSE 🙂 is a Chicago-based company that designs, produces, markets, supports, services and supports military and commercial aircraft and satellites worldwide. The company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital.

Although the defense sector isn’t known for its high growth potential, it shares can provide stability because of their long-term deals with governments. Senate appropriators recently unveiled plans for approximately $24 billion in extra military spending—above the president’s $715 billion budget request—for the Fed’s fiscal year 2022. Furthermore, the government’s planned procurement of advanced military equipment to replace aging equipment currently in service, along with technological advances, are expected to accelerate the growth of the defense sector. Both EADSY as BA will benefit.

EADSY prices have increased by 16.6% during the past nine month, while BA returns 8%. Also, EADSY’s 20.4% gains year-to-date are significantly higher than BA’s 4.9% returns. Moreover, EADSY is the clear winner with 14.4% gains versus BA’s negative returns in terms of the past six months’ performance.

Continue reading on StockNews