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Top 6 Stocks to Buy for October

These stocks represent good values and could make major moves higher this month

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Top Stock to Buy #5 – Lockheed Martin Corp. (LMT)

Lockheed Martin Corp. (NYSE:LMT) was the largest beneficiary of U.S. defense department contracts in 2010, so when the government announced plans to cut military spending, analysts predicted a drop in LMT’s 2012 earnings. In April-May, this resulted in a fall from $92 to $80.

However, new contracts, especially in intelligence, surveillance and reconnaissance (ISR), unmanned systems, force protection, cyber security and missile defense flooded the company with new orders.

It recently raised its quarterly dividend by 15% to $1.15 a share for a 5% yield. This is its 10th consecutive annual double-digit dividend increase. In 2012, it is estimated to earn $8.10 per share, and $8.37 in 2013. It has surpassed earnings estimates in each of the past four quarters.

Technically LMT has formed a huge cup-and-handle with a breakout target of $102. Note the stochastic buy and increase in upside volume.

LMT Chart
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Article printed from InvestorPlace Media,

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