Shift in modern warfare turns defense firms into growth stocks

A French soldier uses a drone during a training exercise at a military field near Abu Dhabi on Saturday. Time was, military contractors appealed to equity investors for their stodginess -- predictable revenue, solid profit margins and reliable dividends. While weaponry behemoths like fighter-jet maker Lockheed Martin and missile producer RTX 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. The newcomers at the top of the rankings -- in share price appreciation, if not yet market value -- include drone-maker Kratos Defense & Security Solutions, satellite intelligence outfit Planet Labs PBC and data analytics company Palantir Technologies. Each has seen its stock at least double this year.