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Buy Defense Stocks Because Military Spending Is on the Rise, Analysts Say

TedTed
edited March 2019 in Fund Discussions
FYI: There is some very good news for defense contractors.

The Department of Defense recently released its fiscal year 2020 budget, and spending is expected to hit $718 billion, about 6% higher than last year.

The increased spending supports sales growth targets for sector, and Wall Street has taken notice. Analysts like the entire sector. About 65% of the ratings on defense companies, such as Lockheed Martin (ticker: LMT), are “buys.” That is about 10 percentage points higher than the average for stocks in the Dow Jones Industrial Index.

The message is clear: buy defense. In particular, Lockheed, Raytheon (RTN), and Northrop Grumman (NOC) are three large contractors with strong support from the Street.
Regards,
Ted

M* Snapshot FSDAX:
http://performance.morningstar.com/fund/performance-return.action?t=FSDAX&region=usa&culture=en_US

Areospace & Defense ETFs:
https://www.thebalance.com/invest-in-the-aerospace-and-defense-industry-with-etfs-1215179

Comments

  • rforno
    I own FSDAX - a great defense fund that's constructed far differently than the other defense/aero ETFs out there, which is nice.

    Also own a large large slug of BA. :)
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