The Best Defense Stock to Buy in October

The defense sector is always in demand, and if you're looking for the best defense stock to buy in October, we've got you covered.

The reality is we'll always have a demand for defense and security, and the companies that provide will reward shareholders.

best defense stock to buy in OctoberWe have historical records of military battles going back 34 centuries to the Battle of Megiddo, but the need for defense is surely much older than this.

While modern defense and security has evolved beyond the use of chariots, horses, and bronze weapons, it's as important today as ever.

And when security threats and conflicts arise, defense firms provide vital services.

You've almost certainly heard of some of the biggest defense stocks on the market, like Lockheed Martin Corp. (NYSE: LMT) or Boeing Co. (NYSE: BA). While we like these companies too, we've found a smaller, lesser-known defense stock that could soar.

Here's why we're so excited about it...

Why Defense Remains a Booming Sector

It's understandable if you're averse to anything having to do with war or conflict, but that doesn't erase the fact that the defense sector is a necessity.

Going beyond the need to have a deterrent for conflict, there are also many technologies used in peacetime that have emerged from this industry. This is also an industry that supports a large part of the economy by providing thousands of people with jobs.

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So, even if you abhor war and everything it represents, there's good reason to remain bullish on the defense sector.

And because security is so important, the United States is committing billions of dollars to improving its security. In 2017, global spending on defense reached $1.7 trillion.

Plus, Congress just passed a new funding bill approving nearly $700 billion in new defense spending.

There's no end in sight for the amount of money pouring into the industry.

And you can capture a slice of it with one of the best defense stocks on the market...

One of the Best Defense Stocks You Can Buy

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Vectrus Inc. (NYSE: VEC) is based in Colorado Springs and supplies facilities and logistics services to this country's military.

Today, Vectrus has over 6,700 current employees, over one-third of which are former military.

Its facilities and logistics services include civil engineering, emergency services, communications, ammunition management, airfield management, security, public works, life support activities, warehouse management and distribution, transportation operations, and equipment maintenance and repair services. It does this on behalf of the U.S. Army, Navy, Air Force, and Marines.

Vectrus still provides network communication and information technology services, including cybersecurity and network security, communication systems management and service, system-of-systems software development and engineering, systems installation, mission support, and full lifecycle IT systems for the Department of Defense.

Not only does Vectrus provide an impressive list of logistics services, but it is also growing its business by a rapid clip.

Its first-quarter revenue was up over 10%, and the company's backlogs jumped more than 13% to $3.3 billion. The company has new contracts in its backlog to provide base support and maintenance services at Texas' Sheppard Air Force Base and to provide maintenance services when the U.S. Army Garrison in Stuttgart, Germany is installed.

At the end of Q1, Vectrus had $1.4 billion in pending potential contracts based on submitted proposals, and its managers have identified another $8 billion in projects that would become targets.

The simple fact is that the armed forces can't function without external support, and this company has the expertise to run a base and manage supplies acquisitions.

The company can also assist the military in protecting and using its technology more efficiently. These services are a catalyst for more revenue, higher profits, and greater returns to investors.

Wall Street analysts give Vectrus a price target of $40 a share, a 43% jump from today's price of $27.94 a share.

But that might be too conservative.

Vectrus has a perfect Money Morning Stock VQScore™ of 4, making it a breakout candidate and one of the best stocks you can buy.

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