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Although the defense sector is expected to recover faster than the commercial segment, it should take a while for the industry to return to its pre-pandemic highs. Given the uncertainties and challenges surrounding the industry, prominent defense stocks Lockheed Martin Corporation (NYSE:LMT) and Mercury Systems, Inc. (MRCY) are best avoided now because of their weak fundamentals.
These stocks have been recently downgraded by Goldman Sachs (GS) from Buy to Neutral.
