“While the recent geopolitical tussle between the United States and some of its long-standing opponents has been a growth inhibitor for a few American industries, in case of defense stocks, it has acted as a catalyst.”
By Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money!
[This article of edited excerpts* (306 words) from the original article (545 words) by Zack’s Investment Research provides you with a 44% FASTER – and EASIER – read. Please note: This complete paragraph, and a link back to the original article, must be included in any article re-posting to avoid copyright infringement.]
“Solid Q3 Earnings Picture
As of Nov 21, 90.9% of the companies in the Zacks Aerospace sector, which includes defense stocks, reported Q3 results…[of which] 70%…came up with earnings and revenue beats… No doubt, encouraging quarterly results have set the stage for the addition of defense stocks to one’s portfolio…
4 Hot Choices
We have selected 4 defense stocks that have gained more than 8% on a year-to-date basis and are expected to continue performing well…Each of these stocks outperformed the S&P 500 Index…[which] has lost 1.5% year to date. In such circumstances, adding defense stocks to one’s portfolio seems prudent.
These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
- Teledyne Technologies Inc. (TDY) is an industrial conglomerate.
- The current-year earnings growth rate expectation for this Zacks Rank #1 stock is 37%.
- The company surpassed the Zacks Consensus Estimate in the past four quarters with the average surprise being 12.92%.
- Its shares have gained 19.2% year to date.
- Safran SA (SAFRY) is an aircraft-engine maker.
- The long-term earnings growth rate expectation for this Zacks Rank #1 stock is 11%.
- The company boasts a P/E ratio of 22.82, which is cheaper than the industry’s ratio of 39.6%.
- Its shares have gained 19.7% year to date.
- Engility Holdings, Inc. (EGL) is a leading provider of integrated solutions and services.
- The long-term earnings growth rate expectation for this Zacks Rank #2 stock is 5%.
- The company surpassed the Zacks Consensus Estimate in the last four quarters with the average surprise being 19.98%.
- Its shares have gained 9% year to date.
- CAE Inc. (CAE) is a worldwide leader in training for the civil aviation, defense and security, and healthcare markets.
- The fiscal-year earnings growth rate expectation for this Zacks Rank #2 stock is 8%.
- The company surpassed the Zacks Consensus Estimate in the last four quarters with the average surprise being 4.28%.
- Its shares have gained 8.5% year to date.”
(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)
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