Please ensure Javascript is enabled for purposes of website accessibility

Is the Sequester Beginning to Bite?

By Rich Smith – Apr 15, 2013 at 2:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors in defense companies want to know.

After bulling through March with strong spending despite the sequester, Pentagon contract awards fell off a cliff in early April. And what little money there was to spread around was often showered upon non-traditional recipients such as Madison Avenue advertising firm Interpublic Group (IPG 0.27%).

So what's really going on over there in Washington today? Is defense spending stalled, or will it rise again? And what does this mean for ultra-low-P/E-bearing stocks like Boeing (BA 1.64%), Lockheed Martin (LMT 0.38%), Northrop Grumman (NOC -0.03%), and General Dynamics (GD 0.35%).

Motley Fool contributor Rich Smith let's you know the score...

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics, Lockheed Martin, and Northrop Grumman. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.