Aerospace defense industry

The Republican-dominated Congress will stem the decline in defense spending, boosting the fortunes of aerospace and defense companies. Other developments favorable to the industry include a $1.5 billion UK contract for Lockheed's C-130J cargo-carrier and renewed Air Force support for McDonnell-Douglas' C-17. The depressed airliner market will soon benefit from large Chinese and Saudi Arabian orders. Still, only stocks bearing Value Line rankings of 1 or 2 are recommended.