We recently published a list of the 10 Worst Performing Defense Stocks So Far in 2025. In this article, we will take a look at where Byrna Technologies Inc. (NASDAQ:BYRN) stands against other worst performing stocks this year.
US defense stocks have wobbled this year, amid concerns about government budget cuts. In February, President Trump hinted at significantly reducing future military spending if things settle down with China and Russia. The creation of DOGE has also reshaped investors’ views of the industry.
READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 13 Best Defense Stocks to Buy According to Billionaires.
Elsewhere, particularly in Europe, stocks have soared this year, with governments unlocking billions to supercharge their militaries. EU leaders met in Brussels in March to discuss the ‘ReArm Europe Plan’, which will allow the bloc to mobilize funds up to $860 million through bonds and relaxed rules on borrowing and spending.
Despite a shaky start to 2025, analysts at UBS are hopeful about America’s defense sector and believe the downside is shrinking and the FY26 budget request would present a better visibility into long-term expenditure plans. Here is what the firm recently stated:
“Consensus estimates have moved higher since the election despite the 40% sell-off. The downside potential seems increasingly smaller. We believe that the current environment is markedly different from Sequestration and do not believe a similar outcome is likely.”
Citi analyst Jason Gursky is also urging investors that this is the right time to buy American defense stocks.
“We recognize the world order is evolving under the current President, perhaps to a multi-polar one in which three countries control spheres of influence over the Americas, Europe and Asia. However, we don’t view that world to be any less dangerous or one that decreases the need to acquire the tools of deterrence.”
Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector.
Gursky argues that as long as the global threat environment remains and the United States maintains its leadership role, regardless of whether it is as a sole superpower or as a power in a multipolar world order, defense spending is expected to remain robust, which would benefit stocks in the sector.
A military personnel in gear next to a shoulder-fired launcher, representing the company’s less-lethal defense technology.
Methodology
For this article, we went through screeners to identify stocks in the aerospace and defense industry. From there, we picked the top 10 stocks with the worst year-to-date negative returns in share price, as of the close of business on March 26, 2025. Pure-play aerospace stocks that do not deal in defense contracts have been excluded from the list. The stocks are ranked according to their share price decline.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Byrna Technologies Inc. (NASDAQ:BYRN)
YTD Decline in Share Price: -38.22%
Byrna Technologies Inc. (NASDAQ:BYRN) manufactures less-lethal equipment and munitions for personal security, private security firms, military, and law enforcement agencies.
The company enjoys high brand visibility through increased media exposure, which is helping in boosting consumer and law enforcement demand for its products. During the Q4 2024 earnings call on February 7, Byrna Technologies Inc. (NASDAQ:BYRN) reported a 101% increase in net revenue for the fiscal year. Net income also improved to $12.8 million from a net loss of $8.2 million in fiscal 2023.
In March this year, Byrna Technologies Inc. (NASDAQ:BYRN) announced that its first ammunition production facility in the United States was now operational in Fort Wayne, Indiana, with a capacity to produce 8 million rounds of its proprietary less-lethal ammunition per annum.
Despite these recent positive developments, Byrna Technologies Inc. (NASDAQ:BYRN)’s share price has tumbled this year, with a sharp 33% decline over the past month. While there is no conclusive reason behind the slump, its high P/E ratio may have sparked overvaluation concerns among investors.
With shares plunging by over 38% this year, Byrna Technologies Inc. (NASDAQ:BYRN) is one of the worst performing stocks in 2025.
Overall, BYRN ranks 6th among the worst performing defense stocks so far in 2025. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BYRN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
