No. 2 - Strong on Defense?

Next week, defense dynamos such as Boeing (BA),General Dynamics (GD) and Lookheed Martin (LMT) are all reporting earnings. Has the additional war spending already been priced into these stocks, or is there room for them to soar?

If you want a tell into what’s going to happen next week, Guy Adami says, Honeywell’s (HON) aerospace unit was up 13.6%.

He loves Boeing, even though he says the stock has gotten a little ahead of itself after beating earnings last quarter.

Lockheed has been going sideways, and Guy thinks they will have a nice quarter but it won’t compare to their last. Either way, that stock is going to $105.

Guy’s trade in the space is somewhat of a surprise: L3 Communications (LLL), a stock he says got hammered months ago. Goldman Sachs says it’s got $110 written all over it, says Guy.

Eric Bolling likes Honeywell in the defense space, and Pete Najarian thinks General Dynamics is going to blow out the quarter.

Questions? Comments?

Trader disclosure:
On APR 20, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Bolling owns (SZE), (VE), Gold, Silver, Corn, Is Short Soybeans
Najarian owns (IBN), (PEP)