Sparton Corporation (SPA) is another company that does a lot of business with the defense industry, and it’s not feeling the pain of cutbacks. The company operates makes everything from flight controls and nuclear detection to anti-submarine sono-buoys used by the Navy. Sparton also has a Medical Device segment that develops complex and sophisticated electromechanical devices for the medical markets.
The company has posted positive earnings surprises in three of the past four quarters, and analysts have recently raised their estimates for both 2014 and 2015. The stock was upgraded to “A” back in June and Portfolio Grader still ranks the stock as a “strong buy” today.