Defense Stocks General Dynamics and Northrop Grumman Are Attractive

With a new administration ready to take office in the U.S., many big decisions will need to be made regarding homeland defense and the defense budget. These decisions will have a great effect on defense stocks. Some believe Obama will cut the defense budget by 10-25% which may be detrimental to the sector. Another take is that the Military will become more evolved with better technology greatly benefitting a firm like Aerovironment who build high tech unmanned aircrafts that have sophisticated cameras to help give the military an advantage without putting any human lives at risk and to be more reliant on technology rather than recruiting.


If you have a bullish outlook on defense spending increasing due to conflicts going on in the Middle East, Russia, Israel etc. you may want to go on the offensive with defense stocks. Here is a list of defense stocks that are favored by Zachary Scheidt on SeekingAlpha.com and others that believe defense spending will increase, and our outlook on these firms. Companies listed are ranked by valuation attractiveness.


Defense Stocks and their Sales Expectations & Valuation Attractiveness
defense%202.jpg



*denotes less than 5 years historical sales numbers available



VE Sales Growth calculated for these firms on 1-11-09


By Research Team

Value Expectations

www.valueexpectations.com