The U.S. Navy needs more firepower.
At the start of last year, it only had 296 battle-force ships. But by 2031, it wants a 450-ship fleet... made up of 299 warships, 68 auxiliary ships, and 83 unmanned vessels.
The pressure is on the U.S. to grow its naval fleet. Not only is its current force stretched too thin, but it's also now behind China in number of battle-force ships.
As competition with China intensifies, America will need more ships to deter conflict in the Indo-Pacific region, particularly around Taiwan and the South China Sea.
Part of the Navy's expansion plan is to order 15 nuclear-powered battleships from U.S. shipyards by 2055.
Nuclear-powered ships are much more efficient than standard ships. A tiny amount of nuclear fuel provides massive amounts of energy compared with heavy fuels like oil or diesel. And nuclear reactors can operate for 25 to 30 years – or even longer – without needing to refuel.
Billions of dollars are going to be spent each year to build a bigger, better naval fleet... That should get investors excited.
Most folks will probably look to invest in traditional shipbuilders. But building a warship is a brutal, low-margin grind. Labor shortages, fixed-price contract overruns, and supply-chain delays can wipe out profits before a ship even hits the water.
There's a better play...
You don't need to gamble on which shipbuilder will win the next contract. Instead, you can own the mandatory "tollbooth" that every single nuclear ship must clear before it reaches the ocean.
That tollbooth is BWX Technologies (BWXT).
BWX is the sole manufacturer of nuclear reactors for the U.S. Navy's nuclear-powered fleet, including Nimitz- and Ford-class carriers and Virginia-class submarines. The company makes nuclear reactors, heat exchangers, and steam generators.
The Navy is a huge customer in BWX's government-operations segment. It has been for more than 70 years. Today, about two-thirds of sales come from its naval nuclear-propulsion segment.
The U.S. Navy cannot build a single nuclear warship without BWX. Period.
That moat delivers unprecedented financial visibility for shareholders. BWX's multiyear backlog recently surged past $8.6 billion, locking in guaranteed revenue as the Navy ramps up its order book.
Supported by steady defense spending and expanding commercial nuclear operations, there are countless reasons to be bullish on BWX.
If you're a serious, long-term-focused investor, you should consider adding BWX to your portfolio.
Of course, the question is... When should you buy?
BWX is up nearly 200% over the past five years. Shares trade at a premium valuation, which makes sense because of the company's backlog.
However, the stock has been in a steady downtrend since mid-April, falling about 28%.
Will the stock bounce back soon and continue its longer-term trend higher... or will it keep moving lower?
For the answer, we can turn to my new StockTracker tool.
In general, the market moves in cycles. Sectors and stocks come into favor for a time and outpace the market, then fall back a bit as others catch up. As a result, stocks rotate in a predictable fashion, round and round again, in a pattern that looks a lot like this...
My StockTracker tool shows where a stock or sector is on this graph. And my research has pinpointed exactly where you want stocks to be on this chart. We call it the "Buy Zone," which is represented by the green circle in the chart below.
You'll want to avoid buying stocks that are turning lower in the "Topping" quadrant or are in the "Bearish" quadrant.
Let's look at where BWX is today...
As you can see, BWX isn't in the Buy Zone just yet... but it's close. (Each dot represents a week.)
When BWX does move into the Buy Zone, then we'll know the bottom is in. And from that point on, the stock should start to outperform the S&P 500 Index.
So you shouldn't rush to buy BWX today. Instead, you should keep an eye on our StockTracker to see when it's time to pull the trigger.
The StockTracker is a powerful tool. No matter what stock or fund you're interested in buying, you should check where it's positioned on my chart. That way, you can make sure you're buying it at the right time.
To learn more about my easy-to-use system and how it can help you maximize your gains, click here.
What We're Reading...
- Something different: An entire theater was evacuated during a Spider-Man: Brand-New Day screening due to a moviegoer's uncontrollable bout of "rotten" flatulence.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
August 5, 2026