President Barack Obama announced plans to send 30,000 more U.S. troops to Afghanistan in an accelerated deployment aimed at a quicker U.S. exit. Which stocks may see a rise as a result?
Howard Rubel, aerospace and defense analyst at Jefferies & Co., and Alex Hamilton, senior analyst at Jesup & Lamont, shared their views. (See their stock picks, below.)
“World peace is not here and that’s pretty clear,” Hamilton told CNBC.
“Even though it’s an exit strategy, we don’t know what the timeline is and it’s going to require a surge.”
Hamilton said he likes the support and the force-multiplier names.
In the meantime, Reubel said spending for increased training of the Afghan army may boost four key contractors (see below).
“It’s not too late" to get into the defense stocks, he said. "The reality is that the defense budget is going to be flat, which is better than expectations from 6 months ago,” Reubel concluded.
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In September 2009, Jefferies acted as a Financial Advisor to Axsys Technologies in connection with acquisition by General Dynamics.
Within the past 12 months, Jefferies and/or its affiliates received non-investment banking, securities related compensation for client services provided to General Dynamics, Lockheed Martin and Alliant.