Why These Defense Stocks Are Declining This Week

Page 9 of 9

1. KWESST Micro Systems Inc. (NASDAQ:KWE)

Weekly Decline: -19.76%

KWESST Micro Systems Inc. (NASDAQ:KWE) is engaged in the development of tactical systems and ammunition for military and security forces.

The company’s share price is down by nearly 50% year-to-date, as it runs against time to regain compliance with NASDAQ’s minimum bid price requirement. In November 2024, the stock exchange extended KWESST Micro Systems Inc. (NASDAQ:KWE)’s listing for another 180 days, giving the company until May 12, 2025, to regain compliance with the minimum $1 bid price per share requirement.

KWESST Micro Systems Inc. (NASDAQ:KWE) was trading at just $0.3611 per share at the close of business on Friday, March 14, after shares dropped 19.76% during the past week.

Overall, KWE ranks first among the 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 KWE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires 

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9