A Look at the Defense Sector

The Spade Defense Index (^DXS) had a remarkable run for several years. The index outperformed the S&P 500 every year for nine-straight years from 2000 through 2008.

Lately, however, many defense and aerospace stocks have come under hard times. Just recently, a few defense names have come to life. Over the last three sessions, the DXS is up by 2.36% compared with just 0.10% for the S&P 500.

A couple of stocks like General Dynamics (GD), Lockheed Martin (LMT) and Raytheon (RTN) are beginning to look very attractive. Check out their P/E ratios.

From our Buy List, I like Moog (MOG-A). I’ve also written before that DigitalGlobe (DGI) and GeoEye (GEOY) both look very compelling.

Here’s a look at the stocks in the index along with their dividend yield and forward P/E ratios:

Company Symbol Price Yield Forward P/E
AAR Corp. AIR $27.06 12.6
Applied Signal Technology APSG $37.87 1.32% 29.6
American Science and Engineering ASEI $84.64 1.42% 16.8
Alliant Techsystems ATK $76.84 1.04% 8.9
AeroVironment AVAV $26.70 22.4
Boeing BA $68.76 2.44% 15.2
Ball Corporation BLL $68.73 0.58% 12.8
CACI International CACI $51.33 12.0
Comtech Telecommunications CMTL $27.50 3.64% 19.0
Rockwell Collins COL $59.74 1.61% 13.3
Ceradyne CRDN $35.52 24.2
Computer Sciences CSC $52.06 1.54% 9.2
Cubic Corporation CUB $46.57 0.39% 16.7
Ducommun DCO $21.99 1.36% 10.0
DigitalGlobe DGI $30.31 86.6
EMS Technologies ELMG $19.83 16.5
Esterline Technologies ESL $68.07 13.7
Elbit Systems ESLT $52.79 2.18% 10.8
FLIR Systems FLIR $28.58 16.4
Force Protection FRPT $5.73 15.1
General Dynamics GD $71.17 2.36% 10.0
GeoEye GEOY $39.92 21.2
Goodrich GR $89.15 1.30% 17.0
GenCorp GY $5.14 17.1
Honeywell International HON $53.73 2.25% 14.3
Herley Industries HRLY $16.94 12.1
Harris Corporation HRS $47.01 2.13% 9.6
L-1 Identity Solutions ID $11.89 297.3
Integral Systems ISYS $11.12
ITT Corporation ITT $52.83 1.89% 11.1
Ladish LDSH $48.54 25.5
L-3 Communications LLL $76.38 2.09% 9.2
Lockheed Martin LMT $73.77 4.07% 11.2
ManTech International MANT $39.22 10.7
Moog MOG-A $42.64 13.7
Mercury Computer MRCY $17.82 26.2
NCI, Inc. NCIT $22.11 12.0
Northrop Grumman NOC $67.05 2.80% 9.7
Orbital Sciences ORB $17.42 20.7
OSI Systems OSIS $35.95 16.4
Oshkosh Corporation OSK $37.96 10.1
Precision Castparts PCP $141.24 0.08% 16.5
Raytheon Company RTN $49.69 3.02% 10.2
SAIC Inc SAI $16.00 11.2
SRA International SRX $25.30 16.5
TASER International TASR $4.74 52.7
Teledyne Technologies TDY $43.67 13.6
Triumph Group TGI $93.58 0.17% 12.4
Textron Inc. TXT $24.03 0.33% 18.9
URS Corporation URS $40.27 10.9
United Technologies UTX $78.01 2.18% 14.7
ViaSat VSAT $44.17 29.8
VSE Corporation VSEC $32.42 0.74% 6.5

Posted by on January 10th, 2011 at 11:59 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.