citi Research expresses optimism about defense stocks, claiming they are undervalued despite recent market downturns linked to uncertainty over defense spending and politics. Analyst jason gursky emphasizes the potential growth in the sector amid rising international military budgets and specific U.S. defense plans.

citi Research thinks the market is failing to correctly price aerospace and defense stocks.

citi Research analyst jason gursky remains bullish on the sector.

Lockheed shares, on the other hand, have dragged this year after the weapons manufacturer issued disappointing forward guidance.

Northrop has similarly jumped more than 2% this week on the renewed sentiment.

rtx is the outlier in its year-to-date performance, having gained 11.2%.