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The Zacks Analyst Blog Highlights: Lockheed, Northrop Grumman, Heico and Wesco

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For Immediate Release

Chicago, IL –July 23, 2019 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) , Heico Corp. (HEI - Free Report) and Wesco Aircraft Holdings .

Here are highlights from Monday’s Analyst Blog:

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., 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., 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., 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%.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

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Northrop Grumman Corporation (NOC) - free report >>

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Heico Corporation (HEI) - free report >>

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