Defense Stocks

2015 Top Stock Picks Show Market Bullish on KTOS

2015 top stock picks

Our Money Morning 2015 top stock picks show that the sentiment for one of the lesser-known defense stocks is really ramping up.

Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) may not be gunning for the huge contracts like Lockheed Martin Corp. (NYSE: LMT) or Raytheon Co. (NYSE: RTN), but it's mopping up this year.

Here's why it's up more than 30% this year and still has upside.

How One Massive Defense Program Will Drive the Lockheed Martin Stock Price


The Lockheed Martin stock price (NYSE: LMT) this year has been sensitive to developments in the Joint Strike Fighter program.

Investors can expect this LMT stock price driver to be around for some time.

That's enough to sour some investors on Lockheed Martin stock. Don't let it deter you...

Kratos (Nasdaq: KTOS) Stock a Buy with 70% Upside in 2015

KTOS stock

Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) stock is coming into 2015 hot.

It's turned an unlucky slip in late 2014 into a 19% gain in 2015.

And the stock is still undervalued. Here's why Kratos stock has a chance to move yet another 70% by year's end...

How the Terrorism "Trend" Is Moving Your Money Today

terrorism trend

The terrorism "trend" is moving your money today. When it comes to the proliferation of one of the six primary trillion-dollar trends - War, Terrorism, and Ugliness - there's no ignoring the truth.

But while conventional wisdom is that terrorism has a negative impact on your money, in reality, the effect is quite the opposite.

That's because in one of the great ironies of the financial world, terrorism actually creates far more opportunity than it destroys...

Three Defense Stocks to Buy in 2015

defense stocks to buy in 2015

The list of good defense stocks to buy in 2015 is growing.

You have a number of legacy names delivering on a crucial need to fight "War, Terrorism, and Ugliness," along with little-known niche players filling roles in the market not addressed by the big boys.

Here are the three defense stocks that will have a good 2015...

One of the Best Defense Stocks for 2015 Is This Small-Cap

best defense stocks for 2015

Of the best defense stocks for 2015, the one poised for the biggest gains may well be this small-cap.

Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) isn't another Raytheon or Lockheed.

And that's why one of our experts loves it...

This Little-Known Defense Stock Is a Hidden Gem

defense stocks

Defense stocks are a great portfolio builder.

They are a "need-to-have" investment backed by companies with solid balance sheets and provide important security needs in an uncertain geopolitical environment.

And while some names may come to mind in the defense sector, here's one you may not have heard of...

Top Defense Stocks' Potential Goes Far Beyond U.S. Military Spending

defense stocks

It's been wrongly assumed that defense stocks are a bad investment because of budget cuts.

But on the contrary, growing conflicts in the Middle East only further prove their value.

And even if you're not sold on the military angle, defense stocks are also a good buy because these companies are upping their presence in the civilian market.

Here are the big names, and what they're doing...

How to Find the Best Defense Stocks to Buy

defense stocks

Defense stocks are becoming more important with the U.S.-led fight against the Islamic State.

And with earnings for the major defense companies being released this week, the mixed earnings picture could obscure the good investments.

Truth be told, the sector is a "must-have," and here's how you can decide which defense stock is the best...

This 100-Year Old Military Technology Makes Raytheon (NYSE: RTN) Stock Today's Best Defense Buy

RTN stock

War-weary investors may shudder at the thought of buying Raytheon Co. (NYSE: RTN) stock, but the practical investor will see a great opportunity.

The growing threat of militant groups, accentuated by the Islamic State of Iraq and al-Sham (ISIS), currently infecting large swaths of land across Syria and Iraq prove that the defense sector is not only a good investment but a necessary one.

Here's why RTN plays an important role in this fight...

What President Obama's 2015 Budget Means for These Stocks


U.S. President Barack Obama's 2015 budget, officially set for release today (Tuesday), looks good for defense stocks -- for the most part.

Based on preliminary details that members of the Obama administration began discussing last week, defense contractors won't be touched by most of the planned spending reductions.

To continue reading, please click here...

This Profit Play Builds "Hunter" Drones To Counter the Chinese Sub Threat

With the Pentagon, this company is pioneering unmanned underwater drones to detect a new generation of ultra-quiet diesel-electric submarines that threaten U.S. security. And it looks like a profit machine.

Investing in Defense Stocks: Why Lockheed Martin (LMT) Is Too Big to Fail

Last year when Congress formed its much-lauded "Supercommittee" to sort out America's debt crisis, there was a lot of handwringing about draconian budget cuts.

But true to form, on the eve of an election year, our politicians did nothing and the sequestration clock began to tick.

In essence, they made the bold move to kick the can down the road.

The problem is if the clock is allowed to keep ticking, those same draconian cuts will happen anyway.

No industry is more aware of this than the defense sector.

For them it is literally like turning a battleship - the major players need a lot of lead time to readjust their bearings.

So it's no surprise that the defense sector, which has a budget bigger than the combined defense budgets of at least the next 30 countries in the world, is worried more than most about significant cuts.

And when corporate execs worry, so does Wall Street.

But somehow, I think the military industrial complex will survive. For investors, it will be all about picking the right players.

Investing in Defense Stocks: Lockheed Martin's Big Advantage

One of them is Lockheed Martin (NYSE: LMT).

As the great military strategist Sun Tzu once said, "Opportunities multiply as they are seized."

Today, there is no company better at seizing opportunities than Lockheed Martin.

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Defense Stocks Under Fire From Super Committee Budget Cuts

Defense stocks have become collateral damage in the battle raging in Congress over how to reduce the deficit by $1.2 trillion over the next decade.

Any mix of cuts and tax increases will certainly include significant reductions in defense spending. And if the Congressional "super committee" fails to come up with a plan, an automatic "sequestration" will kick in, which calls for half of the money -- $600 billion - to come out of defense.

That will come on top of $350 billion in defense spending cuts (also stretched out over the next decade) that were part of this past summer's agreement to raise the debt ceiling.

No wonder the major defense contractors are concerned.

"The defense market is shrouded by the uncertainty," Jay Johnson, Chairman and CEO of General Dynamics Corporation (NYSE: GD) told Politico. "We continue to have no special insight as [to] what the super committee will determine ... or what will happen to defense budgets beyond 2012."

While the deadline for the 12-member bipartisan super committee to vote on a plan is Wednesday, it must submit that plan to the Congressional Budget Office today (Monday).

Talk on Capitol Hill last week was anything but optimistic.

Super committee member Sen. Max Baucus, D-MT, was among those expressing dismay at the lack of progress.

"We're at a time in American history where everybody's afraid - afraid of losing their job - to move toward the center. A deadline is insufficient," Baucus told The Washington Post. "You've got to have people who are willing to move."

The urgency of doing something about the federal deficit was underscored last week when it officially passed the $15 trillion mark.

With defense spending already on the decline as a result of the withdrawal of U.S. military forces from Iraq by year's end and the continuing drawdown of forces from Afghanistan, the defense industry has already started to feel the pain.

Lockheed Martin Corp. (NYSE: LMT) laid off 6,500 workers over the summer; its stock is down more than 5% in the last six months. Northrop Grumman Corp. (NYSE: NOC) let 800 people go just last month, and its stock has fallen nearly 12% in the past six months.

Profits at Risk

An adjustment was coming even without a debt problem. While the United States was embroiled in two major overseas conflicts, the defense industry got fat - profits grew from $6.7 billion in 2001 to $24.8 billion in 2010.

Government spending on defense has nowhere to go but down -- the only question is by how much.

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