The Three Best Stocks to Buy Today

I don't usually do this.

Members of my premium services - Energy Advantage, Energy Inner Circle, and Micro Energy Trader - get all my investment picks first.

But given the huge increase in geopolitical crises and their impact on the availability, security, and price of energy...

It's crucial that you know exactly how to make money in today's energy market.

The way to do that is to invest in companies that bridge energy and defense.

So today, I'm releasing the names of the three best investment plays - all from my premium services - that do just that...

And will set you up for huge profits.

These Are Plays on the Three Most Pressing Global Hot Spots

The companies you're about to see run from very large providers of military and defense contracts in energy hot spots to very small firms with an inside track on niche areas.

They come from my premium services, where members have already captured double-digit gains on all of them.

And today, it's your turn.

All of these plays share a connection between weapons systems or readiness on the one hand, and the defense of energy hot spots globally.

They cover three of the most pressing military needs to deter foreign adversaries' attempted advances on strategic global energy resources and flash points. Each one provides a unique and essential solution to a crucial security concern.

Let me show you...

Energy and Defense Play No. 1: Northrop Grumman Corp.

Our first pick today is major defense contractor Northrop Grumman Corp. (NYSE: NOC). Northrup is well-known for highly visible, revolutionary technology, such as the Apollo Lunar Module and the B-2 stealth bomber.

But I recommended Northrop to my premium Energy Advantage subscribers for a different reason...

For a breakthrough that may be the most important piece of military technology in years.

GPS systems have been the mainstay of the American ability to direct military assets wherever they're needed, track deployments by others, and direct strikes when warranted.

It has also had a fundamental spillover effect in the civilian sector, as almost anyone who uses a car nowadays can tell you.

Unfortunately, GPS has a weakness - it relies on satellites to operate. Those satellite networks are now vulnerable to compromise by Chinese, Russian, and other technology.

The risk here is significant, running the possibility of blinding entire defense systems and stopping America from striking back at enemies.

Especially if tensions with China in the energy-rich South China Sea come to a head...

That's where Northrop Grumman comes in. Its breakthrough, called the "Atomic Navigator" chip, is about as large as an apple seed.

It allows continuous direction and navigation without the need of GPS or satellites. Northrup controls both the patents and defense contracts for the chip.

As the danger of America's reliance on satellites becomes clearer, Northrup's shares will ride the way up.

Now, satellites are not the only thing the U.S. military and economy relies on. Computers and the Internet have made life much easier and our military much stronger...

But they are also vulnerabilities - at least right now...

Energy and Defense Play No. 2: Raytheon Co.

Our second company is another large defense contractor - Raytheon Co. (NYSE: RTN). Over the last several years, Raytheon has spent more than $3.5 billion acquiring 17 of the most innovative cyber firms on the market and currently holds almost 400 cyber security patents.

With roughly $2.5 billion in its war chest, it can pursue pretty much any cyber venture that looks promising.

The result is an amazing project labeled "Plan X," which was born from joint efforts by Raytheon and the Pentagon's legendary advanced research agency, DARPA.

"Plan X" is a direct response to Chinese attempts to cripple U.S. military computer systems, but it also has some very clear advantages to a wide range of American businesses as well...

Including energy companies, which were recently warned by the Department of Homeland Security and the FBI that they were being targeted in an elaborate hacking campaign.

Just imagine what a hostile country could do if it managed to hack into an American nuclear reactor and decided to use it for nefarious ends...

That means Raytheon stands to acquire the lion's share of some $65.5 billion in federal contracts on cybersecurity between now and 2020.

Of course, if you've been following the news, you'll know that one of the most pressing threats out there today is North Korea's missiles...

But you may not know the Chinese have a similar card up their sleeve. In fact, "dozens" of their horrific new superweapons were recently aimed at the U.S.S. Ronald Reagan on patrol in the South China Sea...

Our next play is the key to defending against these threats.

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Energy and Defense Play No. 3: Aerojet Rocketdyne Holdings Inc.

Finally, Aerojet Rocketdyne Holdings Inc. (NYSE: AJRD) is a smaller $2.2 billion market cap contractor occupying what may be the most important defense niche today.

Aerojet offers aerospace and defense products and systems for the U.S. government, including the Department of Defense, the National Aeronautics and Space Administration (NASA), and aerospace and defense contractors, as well as for the commercial sector.

The company also provides propulsion systems of different kinds for missile defense systems, in-space use, precision tactical systems, and much more - as well as for civil and commercial uses.

Now, I've been tracking defense-related companies for some time, owing to the direct connection between U.S. military positions and global energy resources.

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This has especially been the case in Asia, where energy and security are tightly linked (just look at the rising tensions in the South China Sea, which is rich in energy resources in its own right, as well as being a key shipping lane for oil and natural gas).

As I have noted on several occasions, energy interests are progressively focusing on Asia. That process will continue at least for the next three decades, as the primary increase in global energy demand will be coming from there.

That has catapulted the disagreement over offshore South China Sea oil and natural gas reserves into a major source of friction with China.

Fortunately, the United States has a stunning checkmate move that could stop Chinese aggression dead in its tracks. You have to see it to believe it.

Just further up the coast, the North Korean crisis threatens to destabilize the entire region. Recent developments in North Korea's missile capability mean that flash point could now affect the United States directly.

Enter the THAAD (Terminal High Altitude Area Defense) missile intercept program, designed to shoot down long-range ICBMs (intercontinental ballistic missiles).

Now, THAAD has 14 consecutive successful tests under its belt and has just been installed in South Korea to deter and defend against North Korean attacks.

And Aerojet is the primary contractor for the THAAD engine and propulsion systems, along with related missile defense systems designed to intercept shorter-range missiles.

Now, huge defense provider Lockheed Martin Corp. (NYSE: LMT) is the principal THAAD provider. But the much smaller Aerojet holds the key by providing the crucial engine systems.

With missile threats becoming more and more pressing, Aerojet will be a main beneficiary of the renewed national defense posture moving forward - and due to its smaller size, Aerojet is positioned to move up much faster than a giant like Lockheed Martin.

Now, since I recommended them to my premium subscribers, Northrop Grumman is up more than 30%, Raytheon is up almost 30%, and Aerojet is up more than 56%.

But these are only the first steps in what will be some very major gains moving forward.

P.S. To get many more energy and defense picks like these - all with the potential to give you double- and triple-digit gains - join my premium research service, Energy Advantage, today. You'll also find out the name and ticker symbol of the tiny company that I expect could foil China's new superweapon.

The post The Three Best Stocks to Buy Today appeared first on Oil & Energy Investor.

About the Author

Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.

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