[Policy] More Budget on Defense

New Budget Today President Bush is sending Congress $2.7 trillion budget which gives huge boost in defense and homeland security spending. If the new budget plan does pass through then we should see many defense stocks benefiting from it.

Let's take a look at some of the major company in the the defense industry:

• General Dynamics(GD): the Falls Church, VA based company makes combat system for army and marine. President Bush on Monday asked Congress for $3.36 billion for new destroyers built by Northrop Grumman and General Dyamics, $840.4 million for two Littoral Combat ships and $2.62 billion for one nuclear attack submarine. The stock is currently trading at P/E ratio of 16.22, lowest among its major competitors and the stock price is trading near 52 week high of $117.1 per share.
• Northrop Grumman Corp. (NOC): the Los Angeles, CA based company makes air defense, and navy ships such as aircraft carriers. The new Bush administration's budget proposal includes destroyers and submarine from the company and General Dynamics. The stock is trading around 52 week high of $63.24 per share and has been on a rally since November last year from below $55 per share.
• Boeing Co. (BA): the Chiccago, IL based company develops commercial and millitary aircrafts. The new propsed budget plan includes $3.5 billion for 42 advanced F/A-18 fighter jets build by the company. The stock is currently trading near 52 week high of $71.14 per share at P/E ratio of 22.21.