Shift in Modern Warfare Turns Defense Firms Into Growth Stocks

Time was, military contractors appealed to equity investors for their stodginess — predictable revenue, solid profit margins and reliable dividends. Times change.

While weaponry behemoths like fighter-jet maker Lockheed Martin Corp. and missile producer RTX Corp. still occupy a key corner of most stock portfolios, they’ve gotten some company of late — nimble upstarts more akin to technology firms with lofty valuations and the promise of rapid profit growth.