By: Carter Copeland

We see the defense group as ownable based on a positive cyclical growth dynamic fueled by political/public appetite for increased defense spending and an increasingly complex global threat landscape. Sector positioning for those wary of a turn in macroeconomic strength later this year helps too. However, our Neutral sector rating is based on the view that EPS/FCF is structurally overstated and over time will pressure valuations.

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