Buy Defense Stocks As World defe

Northrop Grumman Corp. (NYSE: NOC) Target $233 Strong Buy

Several weeks ago, we recommended picking up shares of NOC on the dual trend of increasing global tensions and rapidly expanding world defense budgets. The stock and industry is in a major uptrend

Those shares have already run up 22% in the past 12 months. That would be an impressive feat for a small cap, but we're talking about one of the five biggest defense and aerospace firms on the planet.

These kinds of gains really prove our thesis about investing to capitalize on truly powerful trends.

There is so much money pouring into the defense sector right now – more than $1.75 trillion by 2020 – that it makes sound investment sense to open up our exposure a bit and capture even more of the gains this growth sector is offering. Strong Buy

Lockheed Martin Corp. (NYSE: LMT) Target Price $252 Strong Buy

Lockheed Martin Corp. is set to be one of the best defense plays of the decade.Before Northrop Grumman's record-breaking deal for the USAF's new B-21 Long Range Strike Bomber, Lockheed held the biggest aircraft award when it landed the F-35 "Lightning II" Joint Strike Fighter.The plane has a few detractors, but the experts who matter, which is to say the elite flyers sitting at the controls, are giving the machine rave reviews.

The Lightning II will be a boost to shareholders for years to come. It's set to be the U.S. Air Force's fifth-generation fighter of choice, and the Navy and Marine Corps will use it, too, but plenty of allied countries are either set to fly it or are testing it now, including:The United Kingdom's Royal Air Force and Royal Navy, plus the Commonwealth's Royal Canadian and Royal Australian Air Forces… the Israel Air Force… the Republic of Korea Air Force… the Italian Air Force… the Turkish Air Force… the Japan Air Self-Defense Force, along with the air forces of the Kingdoms of Denmark, Norway, and the Netherlands.
So it truly is a joint strike fighter with a robust client list. And those clients will be buying replacement parts and airframes for the foreseeable future.The company is typically the first stop when buyers from the Pentagon, Whitehall, and defense establishments the world over want to "kick the tires" on major new projects on land, sea, and/or air.

This sector doesn't go anywhere unless Lockheed is involved. That means it's an industry bellwether… And that bell is ringing now. Strong Buy