The Boeing Company (BA), Northrop Grumman Corporation (NOC), Raytheon Company (RTN): Is Obama to Blame for Recent Missile Failures?

Plus, following the unsuccessful missile test, it’s become clear that more needs to be done to make sure that the U.S. has affective ballistics missile interceptors. That’s great news for defense contractors. Northrop Grumman Corporation (NYSE:NOC), for one, is the prime contractor on the Missile Defense Agency’s Joint National Integration Center, a simulating and war-gaming center that provides answers for America’s missile defense capabilities. The Boeing Company (NYSE:BA) makes ground-based interceptors. And Raytheon Company (NYSE:RTN) builds the SM-3, a defense weapon used to destroy incoming ballistic missiles.

What about spending cuts?
Sequestration and spending cuts are a reality thanks to the inability of lawmakers on both sides to figure out a viable budget solution. However, thanks to continuing threats from abroad, and the recent missile failure, it seems highly likely that lawmakers will find a way to fund further MDA initiatives. In fact, House Armed Services Committee Ranking Member Rep. Adam Smith, D-Wash., is downright bullish on missile defense. “I don’t think we need to put the brakes on anything,” he says. “We need a missile defense system. Rogue actors, from North Korea to Iran, are developing missiles. We need to improve our missile technology.”

Hindsight is 20/20
While some may disagree with the push toward disarmament, while others still fully support it, it’s become clear to the Obama administration, and lawmakers on both sides of the aisle, that the need to improve the United States’ missile defense capabilities isn’t going away — it’s increasing. How this will play out over the next few months is uncertain, but it’s likely that this revelation will help defense contractors that specialize in this area.

The article Is Obama to Blame for Recent Missile Failures? originally appeared on Fool.com and is written by Katie Spence.

Fool contributor Katie Spence owns shares of Northrop Grumman. Follow her on Twitter: @TMFKSpence. The Motley Fool owns shares of Lockheed Martin, Northrop Grumman, and Raytheon.

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