🔥Rheinmetall on ATH: Europe is considering massive armament! 💣

Shares of Rheinmetall AG $RHM.DE, Germany's leading defense equipment maker, shot up yesterday by more than 13 %, their biggest daily gain in two years. The price hit €968 per share, an all-time high. The rise is part of a wider trend where European arms firms are experiencing a boom in response to geopolitical uncertainties and increased government investment in defence.

📌 Why are stocks rising?

European governments are ramping up defence spending in response to threats associated with Russia and uncertainty over future policy US towards NATO.

A possible new defence package EU, that would fund not only military aid Ukraine, but also the strengthening of European armies.

Rheinmetall is in talks with Ukraine for the local production of ammunition of calibre 155 mm, which would reduce dependence Kiev on external supplies.

Strong growth in military orders - the company's revenues have more than doubled in the past year.

Europe prepares for a change in security strategy

Trump's stance on NATO and a possible retreat USA from traditional security guarantees is forcing European states to step up their arms race.

The planned defence package EU, which is expected to be announced after the German elections 23 Februarycould mean record investment in armaments.

Meeting Rheinmetall CEO with the Ukrainian president Zelensky suggests deepening cooperation, including the production of heavy munitions directly on Ukraine.

📊Other interesting companies in the arms industry.

🚀 Hensoldt AG $HAG.DE (+14%) - a specialist in military electronics.

🚀 Thyssenkrupp AG $TKA.DE (+18%) - a key supplier to the German Navy.

🚀 BAE Systems $BAESF (UK), Leonardo $LDO.MI (IT) and Saab $SAABY (SWE) - all European arms companies saw growth.

💡 Rheinmetall and the future of the defence sector
Rheinmetall has been expanding massively in recent years. The company is expanding production of Leopard 2 tanks , armoured vehicles and ammunition, while investing in advanced weapons technology, including air defence systems.

Growth in orders: Germany and other European countries are massively increasing their defence budgets, ensuring stable revenues for years to come.

New markets: Rheinmetall seeks a greater presence in Ukraine, which could open the door to billions of dollars in contracts to rebuild the Ukrainian army.

Long-term demand: Given the growing threat of geopolitical conflict, demand for military equipment will remain high.

Unfortunately, I missed this company's stock, so I'm just watching, but I'll consider buying on a dip!

What is your opinion on this company?