The Aerospace & Defense industry appears in good shape as evident by the Zacks Industry Rank which is in the top 12% segment. Aerospace gets a minuscule weight of 1.7% in the S&P 500. Earnings for the segment are expected to jump 7.1% in Q4 on 1.4% higher revenues as per the Earnings Trends issued on January 18, 2017.
With this, investors must be interested in knowing how the sector might be performing throughout the reporting cycle, so that decide on how to play the sector. This is especially true given the sector is torn between Trump effects.
On the one hand, Trump boosted the prospect of a new US missile defense system, on the other hand, he intends to save “billions” on military purchases. Overall, Trump seeks to put an end to the defense sequester and instead raise the number of US Navy ships and expand the Air Force.
In such a scenario, earnings can be a good guideline to understand the future course of the sector. We have thus highlighted our earnings prediction of some of the aerospace and defense companies.