The company's most promising lines, he suggests, are electronic upgrades and training for aircraft and helicopters systems and unmanned aerial vehicles (UAVs).

He explains, "Command, Control, and Communication is one of the fastest-growing sectors in defense, and one of the hottest items is UAVs. All major defense companies sell them, but few can keep up with Elbit."

A third, and highly speculative play in the defense sector, is iRobot (NASDAQ: IRBT), which the advisors points out is best known for its consumer products such as vacuums.

Wall Street, suggests Early, has misunderstood the real business opportunity with iRobot-defense. He explains, "The company has a line of portable robots called PacBots that help soldiers look for improvised explosive devices (IEDs) and booby traps."

Early continues, "On its most-current model, IEDs and ordnance can even be handled or disposed of. iRobot builds a device that actively seeks its own destruction. It's a win-win. More soldiers come home safely, and the company sells PacBots to replace those that have performed their services."

Overall, he concludes, "This is a huge potential market, and iRobot dominates the space. That means either huge growth that will fund a consumer division or an eventual takeover -- or both."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.