SPR - What Is The Better Buy? A Defense Sector ETF Or Lockheed Martin?
Synopsis
During 2018, the ishares Dow Jones US Defense and Aerospace ETF (ITA) has outperformed Lockheed Martin's stock (LMT) by nearly 8%. The defense industry is benefiting from an expanding defense budget (~$717 billion for 2019) and increasing foreign military sales. After Lockheed Martin's 2nd quarter earnings call, ITA's performance began to diverge from Lockheed Martin stock. The ETF has gained 11.9% on the year compared to 2.7% for Lockheed. The unique portfolio composition combined with near term uncertainties in Lockheed Martin business make ITA a better buy for the rest