US Defense Stocks in 2017: A Comprehensive Analysis

In 2017, the defense industry in the United States experienced significant growth and investment opportunities. As the world's largest defense spender, the U.S. has a robust defense sector that offers investors a wide array of options. This article provides a comprehensive analysis of the top defense stocks in 2017, highlighting their performance, market trends, and future prospects.

Lockheed Martin Corporation (LMT)

Lockheed Martin Corporation, the world's largest defense contractor, topped the list of defense stocks in 2017. The company, known for its production of fighter jets, missiles, and spacecraft, reported a revenue of $93.8 billion. Lockheed Martin's strong performance can be attributed to its diverse portfolio and long-standing contracts with the U.S. Department of Defense.

Raytheon Technologies Corporation (RTX)

Raytheon Technologies Corporation, another leading defense contractor, ranked second in 2017. The company specializes in aerospace, defense, and information technology, with a focus on producing advanced missiles, radar systems, and cybersecurity solutions. Raytheon's robust revenue growth and strategic partnerships with international customers contributed to its impressive performance.

Boeing Company (BA)

Boeing Company, the world's largest aerospace and defense contractor, ranked third in 2017. The company is known for its production of commercial and military aircraft, including the F-15 Eagle and F/A-18 Super Hornet. Boeing's strong order book and increasing exports of its fighter jets helped drive its revenue growth.

Northrop Grumman Corporation (NOC)

Northrop Grumman Corporation, a leading global security company, ranked fourth in 2017. The company specializes in producing military aircraft, missiles, and cybersecurity solutions. Northrop Grumman's focus on innovation and its strategic partnerships with international customers contributed to its impressive performance.

General Dynamics Corporation (GD)

General Dynamics Corporation, a leading global aerospace and defense company, ranked fifth in 2017. The company specializes in producing military vehicles, armored vehicles, and maritime systems. General Dynamics' strong performance can be attributed to its diverse portfolio and long-standing contracts with the U.S. Department of Defense.

Market Trends and Future Prospects

In 2017, the defense industry in the United States experienced several key trends that influenced the performance of defense stocks. These trends include:

• Increased Defense Spending: The U.S. government allocated $610 billion for defense spending in 2017, a significant increase from previous years.
• Focus on Innovation: Defense companies continued to invest in research and development to produce advanced technologies and solutions.




• Globalization: The defense industry became increasingly global, with companies expanding their operations and partnerships in international markets.

Looking ahead, the defense industry is expected to continue growing, driven by factors such as:

• Increased Global Security Threats: The rise of terrorism and other security threats around the world are expected to drive demand for defense products and services.
• Emerging Markets: Defense companies are increasingly focusing on emerging markets, such as Asia and the Middle East, where there is a growing demand for military equipment.
• Technological Advancements: The development of new technologies, such as artificial intelligence and robotics, is expected to revolutionize the defense industry.

In conclusion, 2017 was a strong year for defense stocks in the United States. As the world's largest defense spender, the U.S. has a robust defense sector that offers investors a wide array of opportunities. By focusing on companies with strong market positions, innovative products, and strategic partnerships, investors can capitalize on the growing defense industry.