After what can only be described as an incredibly wild and wooly year for investors, many across Wall Street are cautiously optimistic for 2021, as most equity strategists see the country returning to a more normal state of affairs. The rollout of the vaccines and a reopening of the economy could very well jump-start growth, and one sector that is a very solid idea for growth stock investors is defense.

A new Goldman Sachs research report includes the firm’s top defense picks for 2021, though oddly most of the “big name” defense players are not rated Buy. The analysts noted this:

US Defense investment authorization has now grown 50% off its 2013 trough, making comparisons difficult, while political priorities may shift and the US now faces a total government budget challenge following substantial stimulus spending. This makes defense budget growth look unlikely in the medium-term. However, the geopolitical threat environment also makes sizable reductions in the budget look unlikely, while the defense contractor business model remains particularly favorable through the various budget cycle backdrops. The relative valuation de-rating of 2020 also prices budget concerns in, to a degree.

This helps to explain their somewhat cautious stance, and despite the massive government spending in 2020, as they noted, the world is still a very dangerous place. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Kratos Defense and Security Solutions

While hardly a well-known name, this company offers investors an interesting silo. Kratos Defense and Security Solutions Inc. (NASDAQ: KTOS) provides mission critical products, solutions and services in the United States and internationally.

The Kratos Government Solutions segment offers microwave electronic products; space, training and cybersecurity products; C5ISR/modular systems; turbine technologies; and defense and rocket support services.

The company is also involved in engineering, developing and testing of gas turbines, propulsion components, engines and other systems for military and commercial applications, as well as focusing on development and production of jet engines for tactical weapon systems and jet unmanned aerial systems. Its Unmanned Systems segment provides unmanned aerial systems and unmanned ground and seaborne systems.