More Trouble for Defense Contractors

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In today's edition, industrials editor and analyst Brendan Byrnes discusses some troubling news for defense contractors, including Lockheed Martin and other big names downstream. The Netherlands' parliament will vote to abandon plans to purchase its previously agreed-upon batch of F-35 jets, and other countries may also follow suit. Austerity and higher F-35 costs are forcing many countries to look for cheaper alternatives, and the possibility of upcoming sequestration in the U.S. would sting the entire industry.  

With sequestration looming, Brendan thinks investors should avoid the defense sector for now. But that doesn't mean they should avoid stocks altogether. We've uncovered one company that has so much promise right now that we've dubbed it The Motley Fool's Top Stock for 2012. In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.

At the time this article was published Brendan Byrnes owns shares of United Technologies. The Motley Fool owns shares of General Dynamics and Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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