Global Aerospace & Defense

We are overweight defense, with a positive spending outlook in the US, Asia and Europe, and defensive characteristics. And with multiples having moderated, valuations are now more attractive. We are currently positive on aerospace, but selective—the upcycle is getting long in the tooth, but most underlying indicators (traffic, load factors) remain positive. Valuations remain in the up-cycle range.

Top Picks:

  • Airbus (AIR-FR)
  • Harris (HRS)
  • CACI International (CACI)