We recently published a list of Why These Defense Stocks Are Declining This Week. In this article, we are going to take a look at where Byrna Technologies Inc. (NASDAQ:BYRN) stands against other defense stocks that are declining this week.
European defense stocks have rallied this year as governments faced pressures to increase military spending. During the week of March 3, several stocks registered double-digit growth, with some even recording all-time highs. Investor sentiment picked up after the European Summit in London, where leaders from the EU and NATO met to express their support for Ukraine.
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The United States has repeatedly called for Europe to spend more on defense, stressing it could no longer foot the bill. EU leaders met in Brussels on Thursday 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.
Countries are also ramping up defense expenditure on an individual-level. A conservative victory in Germany is also adding to the momentum. Parties in talks to form the nation’s next government are already considering setting up a defense fund. Friedrich Merz, Germany’s next chancellor-in-waiting, has also vowed to relax the country’s strict borrowing rules.
In contrast, the defense sector in the US has been shaky since Trump’s return to the White House, amid mixed statements on military expenditure throughout his campaign and the early days of his second stint. The creation of DOGE is also reshaping investors’ views of the industry.
Defense stocks wobbled over the past week after a contentious meeting at the Oval Office between Trump and Ukrainian leader, Volodymyr Zelensky, as investors hoped for the US-Ukraine minerals deal to be signed. Shares also fell sharply in February after the US President suggested the country could rapidly cut military spending in the future.
Byron Callan, managing partner at Capital Alpha Partners, believes there is a high level of uncertainty in the U.S. defense sector related to current and future programs and the likelihood of severe cuts to government workforces.
According to a report in the Financial Times on February 24, shares of the six largest American defense companies have fallen 4% under Trump’s second term. Whereas, Europe’s top defense groups have returned gains of around 40% during the same period.
Several Korean companies have also emerged as winners as they tapped into Europe’s defense expenditure surge. While the performance of the U.S. defense sector was lagging behind Europe and Asia well before the presidential elections, the gap has widened after Trump’s victory.
Let’s now head over to the list of defense stocks that are declining this week. Please note that the stocks listed are based on one week’s performance. Our analysis does not reflect the prospects of the company. Their share price could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.
Methodology
For this article, we went through screeners to see how stocks in the aerospace and defense industry performed over the past week (March 3-7). From there, we picked the top 10 stocks with the highest percentage decline in share price during this period. All data is as of the close of business on Friday, March 7, 2025.
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A military personnel in gear next to a shoulder-fired launcher, representing the company’s less-lethal defense technology.
Byrna Technologies Inc. (NASDAQ:BYRN)
Weekly Decline: -12.63%
Byrna Technologies Inc. (NASDAQ:BYRN) manufactures less-lethal equipment and munitions for personal security, private security firms, military, and law enforcement agencies.
On March 5, the company declared preliminary results for the first quarter of fiscal 2025. Byrna Technologies Inc. (NASDAQ:BYRN) is expecting a revenue of $26.2 million, which will represent a 57% year-over-year growth, and is attributed to successful marketing strategies and increased production levels at the Fort Wayne factory.
While the announcement should have bolstered investor interest in the company, Byrna Technologies Inc. (NASDAQ:BYRN)’s share price continued to fall. The stock has plunged 12.63% over the past week, adding to the 9.75% decline during the week of February 24. Overvaluation concerns among investors, given its high P/E ratio, is a likely driver behind the dip.
Overall, BYRN ranks 7th on our list of defense stocks that are declining this week. 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.