Bull Of The Day: Northrop Grumman

With an annual budget north of $4.4 trillion, The U.S. is the largest single consumer of virtually everything it purchases. The defense portion of U.S. expenditures naturally rises in time or war, but with conflict in Iraq and Afghanistan greatly reduced, had settled into a range between $560 and $600 billion annually during the second term of the Obama administration.

As of 2016, the United States accounted for more than a third of global defense spending and it’s been on the rise since then.

President Trump campaigned on a promise to “rebuild our depleted military” and in office, he’s living up to that promise.

Trump signed into law the 2019 National Defense Authorization Act, committing $716 billion to defense spending during the fiscal year. Even when other budget consideration remain unresolved, Congress and the President have an easy time agreeing on defense spending.

Texas Republican Rep. Mac Thornberry, chairman of the House Armed Services Committee suggested that even higher defense budgets are on the horizon, saying of the 2019 allocation, “The first job of the federal government is to defend the country. We’re doing that on about 15% of the federal budget, but we’ve cut too much in the past eight years and we have to make up for some of the ground that’s been lost.”

Northrop Grumman Corporation (NOC - Free Reportsupplies a wide range of Military systems to the U.S and also other countries. The business is broken down into four main categories – Aerospace Systems, Mission Systems, Technology Services and the newly acquired Innovation Systems.

In the Aerospace division, Northrop produces aircraft, spacecraft, high-energy systems and microelectronics. Mission Systems makes military radar, sensors and related products. Technology Services works on the entire lifecycle of civil and defense platforms through a wide range of services, including logistics, security, network operations and integrated air and missile defense serving not only the U.S government and other Sovereign nations, but also municipalities like the state of Virginia. Finally, Innovation Systems was borne from the acquisition of Orbital ATK and is a leader in space, defense and flight systems.

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