Ever since spinning off its massive shipbuilding operation as an independent entity in 2011, Northrop Grumman has increasingly focused on the skies. In the United States, defense contracting has taken an increasingly larger role. Cumulative Growth of a $10,000 Investment in Stock Advisor, Defense Primes 10-Year Total Return vs. S&P 500, largest military procurement in world history, planned combination with the aerospace arm, designed to fly alongside piloted aircraft, to build an autonomous submarine for the Navy, Copyright, Trademark and Patent Information. It also makes important subsystems for a number of other aircraft platforms. Charles W. Mahoney Department of Political Science, California State University, Long Beach, CA, USA Correspondence Charles.Mahoney@csulb.edu. If the Navy wants an aircraft carrier, it only has one place to turn. Image source: Huntington Ingalls. This is a list of all Aerospace & Defense ETFs traded in the USA which are currently tagged by ETF Database. The company has spent most of the decade in the shadows of Leidos and Booz Allen, but with the Engility deal, it is attempting to break out and establish itself as more of a peer. In FY 2019, the DoD awarded a total of $382.6 billion in defense contracts up 6.7% from $358.5 billion in FY 2018. But in an industry that requires massive specialized manufacturing skills, access to clearances, and strong relationships with government buyers, size does matter. It’s shares are actively traded on Australian Securities Exchange (ASX). Defense stocks tend not to be highfliers like tech stocks, but they do offer predictable and stable returns and tend to move based on what is going on in Washington rather than on the cyclical movement of the economy. [1] The surge in spending on defense services contractors that began in 2001 came to a halt in 2009, leading to the Better Buying Power initiative of 2010.[2][3]. The following is a list of the Top-100 U.S. Department of Defense (DoD) Prime Contractors in Fiscal Year (FY) 2019 ranked by total contract funds awarded. It is a major producer of missiles and missile defense systems, has a dominant helicopter franchise, and has a broad catalog of space and airplane products. The Engility deal expanded its workforce with security clearance by about 50% and gave it expertise and access to a range of new intelligence and space opportunities. In fiscal year 2005, the federal government aimed to source 23% of all subcontracts from small businesses with guidance from the Small Business Administration. Subsector Recently Listed; Company Name Stock Symbol Board Listing Date Offer Price Offer Shares Offer Amount Prospectus; Converge Information and Communications Technology Solutions, Inc. … Fintel currently tracks over 9500 funds and over 63,000 securities traded worldwide. Stock Advisor launched in February of 2002. INN takes a look at the year-to-date gains of the 10 largest US defense contractors on the NYSE based on defense revenues. That's unlikely to change, since the company tries to position itself as a hybrid consulting/IT business able to extract higher margins on work because of its ability to offer greater technical analysis than its rivals. If you believe there are investment opportunities in the aerospace and defense sectors, instead of looking at individual stocks, consider investing in defense and aerospace sector ETFs.Such vehicles offer a widely diverse exposure to these companies, where none of … The largest defense contractor by revenue is Lockheed Martin, with more than $56 billion in annual sales. These corporations offer services ovelapping private security and private military service provision. But the Navy has big growth plans, and Huntington Ingalls should be one of the primary beneficiaries of any effort to expand the fleet. Acquire or Expire: Publicly Traded Defense Contractors, Financial Markets, and Consolidation in the U.S. Defense Industry. Booz Allen has had a rocky history, including being the employer of NSA leaker Edward Snowden and of Harold Thomas Martin III, who was accused in 2016 of theft of government property and the removal of classified documents. Raytheon doesn't have a massive signature program like a bomber or a warship, but it makes the electronics and high-tech sensors that go into many of those systems. It also owns shipyards on the U.S. Gulf Coast that make surface combatants, amphibious assault ships, and U.S. Coast Guard national security cutters. Leidos is the largest pure-play government services firm, formed out of a spinoff from SAIC in 2012 and expanded via a 2016 purchase of Lockheed Martin's IT business. Sector. There is some overlap, but following a period of intense consolidation during the 1990s, most of the large contractors are a blend of diversity and specialization. Before we take a detailed look at specific companies, it's important for investors to know a few basics about the defense industry. General Dynamics has an impressive portfolio of defense products: It serves as the U.S.'s primary supplier of tanks and heavy land vehicles and also owns a number of shipyards where destroyers and nuclear-powered submarines are manufactured. Let's conquer your financial goals together...faster. The information is based on a list published by the Stockholm International Peace Research Institute for 2018. The U.S. trend toward lower taxes over the last few decades is putting pressure on agencies to be more efficient, in turn creating new outsourcing opportunities from departments ranging from Agriculture to Veterans Affairs. 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