The defense sector has been on a tear lately. After the election of Donald Trump and the promise of doing away with the sequestration multiples are expanding and what looked expensive two weeks ago now looks like a bargain. I want to dig deeper into this when I get time, but for now here is a little preview.
Below is a simple table with some basic metrics on Lockheed Martin (NYSE:LMT), Boeing (NYSE:BA), BAE Systems (OTCPK:BAESY), General Dynamics (NYSE:GD), Raytheon (NYSE:RTN), Northrop Grumman (NYSE:NOC), Huntington Ingalls (NYSE:HII), United Technologies (NYSE:UTX).
|P/E||P/CFL||DIV %||5 YR DGR|
|BAESY||17.05||22.75||2.99%||N/A (UK CO)|
So there it is, simple, down and dirty. If I had to make a snap decision I'd land on LMT or BA based on the P/CFL, solid dividends, and above average dividend growth rate. LMT is more of a pure play but Boeing has the commercial jet market where Airbus (OTCPK:EADSY) is pretty much their only competition today, not a bad industry really.
I'll write a more comprehensive article, hopefully this week, but with the industry moving at breakneck speeds (relative to past price movement), I figured a snapshot would be helpful for some.
Anasazi, this one was for you. I appreciate your comments and always driving the conversation.
Disclosure: I am/we are long RTN, BAESY.