Summary
Though not commonly thought of as a defense play, General Electric has a niche business that caters specifically to the US military.
This falls under the firm's large, fast-growing, and very profitable Aviation segment and it stands to benefit from a ramp-up in military spending.
This should deliver attractive value to the conglomerate's shareholders for at least the next few years, but likely long term.
If there's one guarantee about the current White House Administration, it's that it's dedicated to ramping up US military spending. Despite the fact that the Obama Administration spent more on the military than any prior administration before it, it's likely that the current Administration will surpass it on a per-year basis. Regardless of the pros and cons and irrespective of whether this is warranted, it creates an attractive opportunity for investors who are already attracted to multi-national conglomerate General Electric(GE). With its hands in the military space, the business could see a nice bit of growth in the years to come.
