This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Defense Gets Defensive

"Looking ahead, we're closely monitoring the industry for acquisition candidates that may become available and, as always, we're mindful for price," L-3 chairman and CEO Michael Strianese said during his company's earnings call. Multiple defense sources said they believe that if one company announces a substantial deal, it could prompt others to quickly get serious about M&A.

When the ice does thaw, look for security -- both physical and cyber -- to be an area of particular focus. Analysts expect spending on software that can lock down networks, spy on rivals and assess threats and high-tech sensors that can peer around corners or provide clearer views from the air to grow faster than spending on big-ticket items such as new jets and warships.

"Technology is the new arms race, and some of the best research is being done in small to midsized firms," one defense banker said. "Prime contractors traditionally have been more than willing to invest to bring new intelligence in-house."

Rogers of Harris Williams said he expects to see a lot of portfolio reshaping. He sees a trend toward large contractors, many of whom are under new leadership in the past 12 to 18 months, moving away from previous efforts to be a one-stop shop in favor of more specialization, and he expects to see some large-scale divestitures as a result.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
LLL $114.52 0.00%
LMT $189.00 0.00%
NOC $156.01 0.00%
RTN $105.08 0.00%
AAPL $128.95 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs