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U.S. House Passes 2020 Defense Bill: 4 Stocks to Buy
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The U.S. House of Representatives recently passed a $733 billion defense policy bill, $17 billion short of the proposed Republican-led Senate bill.
The proposal to allocate $17 billion for building a wall on the border with Mexico was voted against by the Democrat-held House, which instead stressed on deploying troops to the border.
Highlights of the Budget Plan
Of the total, $718.3 billion is being kept as funding for the Pentagon, reflecting 4.7% real growth over the initial fiscal 2019 President’s budget. The budget proposal includes critical funding for Overseas Contingency Operations (OCO) and an emergency budget request, totaling $173.8 billion.
It emphasizes on increasing the end strength for the U.S. Army, Navy and Air Force to 33,600, 29.7% over the fiscal 2019 budget. Here, 30,300 are being kept as active components with the largest increase in the Air Force domain, and 3,300 for reserve components, with the highest increase in the Army Guard and Reserve.
Interestingly, the proposed budget reflects increased spending plans of a whopping $57.7 billion on Aircraft, 166% higher than the previous year’s budget. Notably, $34.7 billion has been allotted to Shipbuilding, showcasing an 89.6% surge over the prior fiscal year.
Similarly, spending plans on other domains have seen a rise that includes a higher allotment of $31 billion for multi-domain and nuclear triad, $14.6 billion for Ground Systems, $14.1 for space and $9.6 billion for cyber.
Defense Stocks Likely to Benefit
The expansionary budgetary policy reform, likely to be adopted by the U.S. administration, should encourage investors to add top-performing defense stocks. In line with this, we have shortlisted four defense stocks that have outperformed the Zacks Aerospace sector year to date, possess a Zacks Rank #1 (Strong Buy) or 2 (Buy) and compelling earnings growth expectations. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #1 stock, has gained 36.4% year to date compared to the sector's growth of 25.8%. It has an estimated long-term earnings growth rate of 7%.
Northrop Grumman Corp. (NOC - Free Report) , a Zacks Rank #2 stock, has rallied 31.6% year to date. It has an estimated long-term earnings growth rate of 12.8%.
Heico Corp. (HEI - Free Report) , a Zacks Rank #1 stock, has gained 77% year to date. It has an estimated long-term earnings growth rate of 13.9%.
Wesco Aircraft Holdings , a Zacks Rank #2, has gained 36.7% year to date. It has an estimated long-term earnings growth rate of 12%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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U.S. House Passes 2020 Defense Bill: 4 Stocks to Buy
The U.S. House of Representatives recently passed a $733 billion defense policy bill, $17 billion short of the proposed Republican-led Senate bill.
The proposal to allocate $17 billion for building a wall on the border with Mexico was voted against by the Democrat-held House, which instead stressed on deploying troops to the border.
Highlights of the Budget Plan
Of the total, $718.3 billion is being kept as funding for the Pentagon, reflecting 4.7% real growth over the initial fiscal 2019 President’s budget. The budget proposal includes critical funding for Overseas Contingency Operations (OCO) and an emergency budget request, totaling $173.8 billion.
It emphasizes on increasing the end strength for the U.S. Army, Navy and Air Force to 33,600, 29.7% over the fiscal 2019 budget. Here, 30,300 are being kept as active components with the largest increase in the Air Force domain, and 3,300 for reserve components, with the highest increase in the Army Guard and Reserve.
Interestingly, the proposed budget reflects increased spending plans of a whopping $57.7 billion on Aircraft, 166% higher than the previous year’s budget. Notably, $34.7 billion has been allotted to Shipbuilding, showcasing an 89.6% surge over the prior fiscal year.
Similarly, spending plans on other domains have seen a rise that includes a higher allotment of $31 billion for multi-domain and nuclear triad, $14.6 billion for Ground Systems, $14.1 for space and $9.6 billion for cyber.
Defense Stocks Likely to Benefit
The expansionary budgetary policy reform, likely to be adopted by the U.S. administration, should encourage investors to add top-performing defense stocks. In line with this, we have shortlisted four defense stocks that have outperformed the Zacks Aerospace sector year to date, possess a Zacks Rank #1 (Strong Buy) or 2 (Buy) and compelling earnings growth expectations. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #1 stock, has gained 36.4% year to date compared to the sector's growth of 25.8%. It has an estimated long-term earnings growth rate of 7%.
Northrop Grumman Corp. (NOC - Free Report) , a Zacks Rank #2 stock, has rallied 31.6% year to date. It has an estimated long-term earnings growth rate of 12.8%.
Heico Corp. (HEI - Free Report) , a Zacks Rank #1 stock, has gained 77% year to date. It has an estimated long-term earnings growth rate of 13.9%.
Wesco Aircraft Holdings , a Zacks Rank #2, has gained 36.7% year to date. It has an estimated long-term earnings growth rate of 12%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>