The bull run in defense stocks is expected to continue, despite lingering concerns about federal spending.
Earnings season has been a positive for some big names, including United Technologies and General Dynamics, and analysts look forward to reports from Boeing, Northrop Grumman and Raytheon in the coming week.
Even though earnings disappointed, Lockheed Martin gave overall confidence a boost Thursday when Chief Financial Officer Bruce Tanner said he was hopeful that 2014 would mark a trough in defense spending and that it would increase in future budgets.
The maker of F-35 jets forecast higher profits this year, with recent budget agreements creating what's being viewed as a more stable path.
With the threat of sequestration, or automatic spending cuts, subdued by Congress' budget agreement, many Wall Street analysts are also optimistic on the profit outlook for defense contractors in 2014.