A trillion-dollar defense budget in sight, Guggenheim strongly recommends defense stocks, with L3Harris Technologies (LHX.US) as the top large-cap pick.

Jitou Finance APP has learned that Guggenheim Securities recently initiated coverage on 22 aerospace and defense companies, with an overall tone of: bullish on defense contractors and aircraft manufacturers, but cautious toward commercial aviation aftermarket suppliers. The firm pointed out that against the backdrop of weakening passenger demand and airlines facing higher fuel costs, the outlook for the aftermarket sector is deteriorating.