How to play aerospace and defense stocks now

Defense stocks have come under pressure as US lawmakers put spending under the microscope.

The Gabelli Commercial Aerospace and Defense ETF Portfolio Manager Tony Bancroft and Baird Senior Analyst Peter Arment join Market Domination to discuss how to play the aerospace and defense sectors now.

Bancroft says that "US defense spending is below historic averages," but President Biden's latest budget request has a notable increase in defense spending.

Arment notes the US is trying to "recapitalize our entire military... that takes well over a decade to do." He says that part of that focus is new technology, meaning there are "a lot of opportunities for new companies to be brought into the industry," including Silicon Valley companies and those that are funded through private equity and venture capitalists.

Both men note L3Harris Technologies (LHX), a company Arment says has a "multiyear growth story." They both like Boeing (BA), saying the company "makes safe planes."

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This post was written by Stephanie Mikulich.