In the 21st century, the U.S. is in the thick of a new arms battle in the Middle East, as increased sectarian fighting and proxy wars in Yemen, Syria and Iraq create new demand for advanced weapons and weapon systems. As we go through these unending global military commitments, we know who loses. Memorial Day reminds us of all the lost lives. This is a day for remembering and honoring military personnel who have laid down their lives to defend our nation.

In this context, the importance of the aerospace & defense industry stems from the strategic role it plays in the country’s security. This is particularly important in the current backdrop with threats turning into new shapes involving asymmetric, air-sea power, cyber, urban, non-state organizations, and many more. The elevated geopolitical risk appears to be fueling support in Washington for an increase in fiscal 2016 defense spending above sequestration caps.

The U.S. defense industry has performed remarkably well in spite of the U.S. budget sequester slashing the Department of Defense’s budget by billions of dollars. Year to date, the Dow Jones U.S. Aerospace and Defense Total Stock Market Index increased 6.03%, outperforming the S&P 500 index (SPY) of 3.25%.

3 Defense Stocks to Look For

Memorial Day offers the perfect opportunity to remember the sacrifices the U.S. armed forces have made, and are continuing to make, in the service of the country. And what better way would it be to celebrate this day than buy some American defense sector stocks considering their development in technological capabilities and equipment over the years. This has ensured many a victory for our nation’s military operations.

In that spirit, let’s take a look at these three domestic defense stocks that hold solid ranks and have impressive long-term earnings growth expectations.

Orbital ATK Inc. (OA - Analyst Report)

Dulles, VA-based aerospace and defense firm was formed by the merger between Orbital Sciences Corporation and the Aerospace and Defense Groups of Alliant Techsystems Inc. Orbital ATK’s efforts to boost new products and services backed by the expertise of its parent companies will enable it to boost contract inflow. With a forward PE of 13.95x and long-term earnings growth expectation of 15.65%, this Zacks Rank #1 (Strong Buy) stock is a solid pick.

Orbital ATK belongs to the Aerospace/Defense Equipment Industry and carries a Zacks Industry Rank #60 taking it to the top 23%. As a guideline, the outlook for industries with Zacks Industry Rank #88 and lower is 'Positive’, between #89 and #176 is 'Neutral' and #177 and higher is 'Negative’.

TransDigm Group Incorporated (TDG - Analyst Report)

TransDigm is a leading global designer, producer and supplier of highly engineered aircraft components that are used in in-service commercial and military aircraft. A diversified revenue base reduces this Zacks Rank #1 stock’s dependence on any particular product, platform or market channel and plays a significant role in maintaining its financial performance.

TransDigm has long-term earnings growth expectation of 13.79% and is currently trading at a forward PE of 27.33x.

Rockwell Collins Inc. (COL - Analyst Report)

This Cedar Rapids, IA-based company designs, manufactures and supports software and hardware solutions for aircraft communication, navigation, signals intelligence and weapons systems as well as surveillance systems for government, military and commercial applications. The company’s balanced exposure to both types of customers allows it to use government funding to develop products for the dual-end market and protects it from risks of reduced orders from either customer class. Its inorganic growth strategy along with an unwavering focus on research and development (R&D) enables this Zacks Rank #2 (Buy) stock to clinch lucrative deals.

With a forward PE of 18.62x and long-term earnings growth expectation of 12.21%, Rockwell Collins appears to be a valued catch.

To Sum Up

In the words of Defense Secretary Ash Carter ““This year -- as we mark the 150th anniversary of the end of the Civil War, the 70th anniversary of the end of World War II, the 65th anniversary of the start of the Korean War, the 40th anniversary of our departure from Vietnam, and the 25th anniversary of Operation Desert Shield in the lead-up to the Gulf War -- we honor and remember those who perished in those wars, just as we recall the more than 6,800 American service members who gave their lives since September 11, 2001.” These have been hard-won victories and the defense companies have done their bit to secure the safety of the homeland. Is there a better way to pay tribute this day than to own a few of these stocks?