2 Defense Giants Soaring: Chase Gains or Wait for a Dip?

The aerospace and defense industry has been a sustained beacon of strength in an otherwise volatile market. With geopolitical tensions escalating, including the ongoing Russia-Ukraine war and conflicts in the Middle East, the sector has steadily risen with momentum. Two giants in the industry, Lockheed Martin and Raytheon Technologies (NYSE: RTX), have outperformed the broader market, with both stocks trading near their 52-week highs. 

But the critical question remains: Should investors chase these stocks or wait for a pullback?

Lockheed Martin: Analysts Still Bullish Despite Strong Gains

Lockheed Martin, the largest U.S. defense contractor with a market capitalization of $145 billion, continues to impress. Specializing in a wide range of defense and aerospace systems, the company operates across four primary segments: aeronautics, missiles and fire control, rotary and mission systems, and space.

Lockheed has enjoyed a remarkable run in 2024, with its stock up 34% YTD, thanks partly to solid earnings and favorable market sentiment. The company posted an EPS of $7.11 in its last report, easily beating expectations for the third successive quarter, and recorded revenue growth of ...