Defense stocks have come under pressure as US lawmakers put spending under the microscope.
The Gabelli Commercial Aerospace and Defense ETF Portfolio Manager Tony Bancroft and Baird Senior Analyst Peter Arment join Market Domination to discuss how to play the aerospace and defense sectors now.
Bancroft says that “US defense spending is below historic averages,” but President Biden’s latest budget request has a notable increase in defense spending.
Arment notes the US is trying to “recapitalize our entire military… that takes well over a decade to do.” He says that part of that focus is new technology, meaning there are “a lot of opportunities for new companies to be brought into the industry,” including Silicon Valley companies and those that are funded through private equity and venture capitalists.
Both men note L3Harris Technologies (LHX), a company Arment says has a “multiyear growth story.” They both like Boeing (BA), saying the company “makes safe planes.”
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No its not.
Aa long as things stop falling off its plane mid flight
consrtist trumo wanted to putin and russia up and usa dwn tatbiswhi he oulled out of afgahan and oter countries and make s=dicators froend of imself
boeing jets need to be grounded worldwide, they are not safe
Boeing has lost the Chinese and Russian markets; they have huge QA issues and the global awareness of that. Chinese new airliners will be taking the So American and So Africa markets. This is just another finance media segment trying to pump up big stocks that are falling on their knees. Investing in defense spending is no longer a good move. The USA is financially broke; just military spending won’t save Boeing as military spending eventually will be slashed. There are so many other investments one can make why risk invest in Boeing? These people will say anything.
Value trap…..may as well buy 3M and Walgreens along with it because a DCF model is telling you you’ve got a margin of safety lol