How to Invest in Defense Stocks

There's no doubt about it: Defense stocks are not cheap. Over the past year, shares of America's five biggest defense companies have shot up more than 37% in price. One military stock in particular -- Raytheon (NYSE: RTN) -- now costs more than twice the one-times-trailing-annual sales valuation traditional among defense contractors, while the average big military stock costs more than 180% of annual sales.

Military stock

TTM Stock Performance

Source: Fool.com