Around the globe, there was great rejoicing over the demise of Osama bin Laden Sunday -- but for investors in Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT), the news was bittersweet. Just days earlier, Pakistani neighbor and Kashmir contender India -- delivered bad news to both companies: They're out of the running India's $10 billion fighter jet contract.

For four years now, America's two defense juggernauts vied with Sweden's Saab, Russia's UAC, France's Dassault, and Europe's EADS for the right to rebuild India's aging air force. Last week, India's Ministry announced it was short listing Dassault and EADS, and giving Boeing and Lockheed the boot.

It's not all bad news. Boeing, along with partners Northrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN) still has a profitable contract to supply the subcontinent with P-8A Poseidon sub-hunters. Lockheed's still set to sell India a half-dozen odd C130 transports. But today, those contracts look like consolation prizes next to the big, $10 billion grand prize -- which is going to somebody else.

Can Lockheed and Boeing turn investors' frowns upside with new contract wins elsewhere? Bet on it -- and keep track of those wins as they come in. Add either stock (or both!) to your watchlist today.

Who's got the best deals in aerospace stocks? Fool Rising Star Anand Chokkavelu, that's who. Read all about his latest picks here.

The Fool owns shares of Lockheed Martin, Northrop Grumman, and Raytheon, but Fool contributor Rich Smith has no position in any company named above. The Motley Fool has a disclosure policy.

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