Why These Defense Stocks Are Declining This Week

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1. ParaZero Technologies Ltd. (NASDAQ:PRZO)

Weekly Decline: -29.05%

ParaZero Technologies Ltd. (NASDAQ:PRZO) is an Israel-based aerospace company that provides safety systems for defense Counter UAS systems and commercial unmanned aircraft.

In December, the company regained NASDAQ compliance for the minimum bid price requirement for listing on the stock exchange. However, its share price has again dropped below the $1 mark.

On February 11, ParaZero Technologies Ltd. (NASDAQ:PRZO) declared preliminary unaudited results for fiscal 2024. While it expects revenue to increase 45% year-over-year to $900,000, the company’s liquidity position appears to be weakening. As of December 31, 2024, PRZO had cash and cash equivalents of $4.2 million, compared to $7.4 million at the close of 2023.

ParaZero Technologies Ltd. (NASDAQ:PRZO) has fallen by 51% over the past month, with its share price dropping by more than 29% last week. As a result, it tops our list of defense stocks that are declining this week.

Overall, ParaZero Technologies Ltd. (NASDAQ:PRZO) 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 timeframe. If you are looking for an AI stock that is more promising than PRZO 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap

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