Why These Defense Stocks Are Declining This Week

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1. Redwire Corporation (NYSE:RDW)

Weekly Decline: -23.19%

Redwire Corporation (NYSE:RDW) is a global space company, providing critical space infrastructure for government and commercial users.

The company’s shares have crashed by 46% this year amid weak financial performance in the recently-concluded quarter and ongoing investigations around the fairness of the Edge Autonomy acquisition to shareholders. The slump continued this week, with a 23.19% decline.

During its Q4 2024 earnings call on March 10, Redwire Corporation (NYSE:RDW)’s reported net loss was $59 million higher compared to the prior year’s period. Its free cash flow for the quarter was also down to $3 million from $12.6 million in Q4 2023. Full year loss was recorded at $114.3 million, worsening substantially from a loss of $27.3 million in FY23.

Overall, Redwire Corporation (NYSE:RDW) 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 RDW 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 

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