"The recent market volatility has shaken more than a few traders, leaving them wondering where they should turn next to protect themselves," notes Jocelynn Drake.

But one sector, she notes, that has performed well and should continue to do so, is the defense sector. In particular, the analyst with Schaeffer's Investment Research considers L-3 Communications (NYSE: LLL) and FLIR Systems (NASDAQ: FLIR) as "shining gems."

Drake notes, "Topping the list is L-3 Communications, which makes secure and specialized systems for satellite, avionics, and marine communications such as flight recorders (black boxes), display systems, and wireless telecom gear."

On July 26, she notes, the company reported a second-quarter profit of $1.49 per share, beating the consensus estimate by a nickel. Revenue for the quarter jumped 11% to 3.41 billion. Adding to its good news, she notes, was that L-3 boosted its 2007 earnings outlook.

Continue reading L-3 (LLL) and Flir (FLIR): 'Shining stars' in defense

L-3 (LLL) and Flir (FLIR): 'Shining stars' in defense originally appeared on BloggingStocks on Thu, 09 Aug 2007 10:15:00 EST. Please see our terms for use of feeds.