So, a recent article on Investopedia starts off warning of a possible bubble in defense stocks (eg. LMT, RTN, etc). Throws out some scary lines about the dot-com bubble, etc. (different industry, right?). But strangely, ends the article with 3 points about how investors should react, with 2 of those 3 points being bullish in nature, not bearish. So is the headline just click-bate or confusion? (I am actually being a bit cheeky– I like the article; it does us a favor by giving some counter points to the main argument).
The three points:
It’s bubble time, take profits (well, ok, that’s helpful). I am not in agreement.
Refers to Zacks Research being bullish:
“…with the United States being the largest [worldwide] supplier of defense equipment, it is undoubtedly a golden era for U.S. aerospace and defense stocks.” 
Again refers to Zacks being bullish:
“…Widespread geopolitical tensions that are prompting nations, both developed as well as developing, to rapidly expand their arsenal should keep the outlook for the U.S. aerospace and defense stocks favorable.” 
Earlier this year when POTUS formally announced he wanted to have Congress purse creating a whole new military branch called the United States Space Force (USSF), an easy and very obvious call was that Lockheed Martin (LMT) would benefit.
Confirmation of said money train has shown up in a recent article by CNBC which reports that an internal US Air Force document from Sept. 14 (CNBC says obtained by Associated Press) indicates an initial Space Force budget of $12.9B during it’s first five years.
“The estimate is made in a memo written by Air Force Secretary Heather Wilson.” 
LMT is all over the board when it comes to space tech and space-related government contracts, with fingers in many pies. Intuitively, we all know government estimates can generally be way off, so the $12.9B looks like seed money to me… there will be lots more coming from that money-tree if/when Congress approves the new branch.
It seems like Lockheed Martin (LMT) just keeps winning big contracts, the latest– $7.2 billion from the U.S. Air Force to produce up to 22 “Global Positioning System III” satellites (currently fixed price for 2, total of 32, up to 22 for this specific deal; I know… that’s a little confusing, but it all equals big bucks $$$). When you are pulling in business orders in the billions range, stockholders are gonna be happy happy happy. I know I am.
“Lockheed was the sole source because Boeing Co. and Northrop Grumman Corp. decided against bidding when the Air Force — openly unhappy about Lockheed’s four years of delivery delays for the initial satellites — decided to open for competition the next group of satellites.” 
Looks like LMT had this one in the bag and the other biggies just threw in the towel.
Of note, some background:
“The new GPS satellites promise increased accuracy for navigation, a signal compatible with similar European satellites and improved security against cyberattacks”