Have we forgotten how good Rolls-Royce, Babcock and BAE Systems shares are?

The article argues that investors may have grown too cautious toward three FTSE 100 defense-linked stocks: BAE Systems, Babcock International and Rolls-Royce. While all three were strong performers over five years—BAE up 236%, Babcock up 190% and Rolls-Royce up 900%—momentum has faded recently. BAE peaked at 2,270p on 12 August and has since fallen 15%. Babcock is down more than 20% and Rolls-Royce down 14% over the same span. The piece points to previously high valuations, with BAE and Babcock trading near 30 times earnings and Rolls-Royce near 50, as rates rise and investors worry about stretched valuations.