Global Aerospace & Defense

We are overweight defense, with a positive spending outlook in the US, Asia and Europe, and defensive characteristics. Although multiples have expanded, we still see some value opportunities. We are market weight aerospace, but more positive than early last year—the upcycle is getting long in the tooth, but some underlying indicators (traffic, load factors) remain positive. Valuations have expanded, and are now at the upper end of the up-cycle range. 

Top Picks:

  • Airbus (AIR-PAR)
  • Harris (HRS)
  • Leidos Holdings, Inc (LDOS)