Defense Stocks to Buy: Lockheed Martin (LMT)
Lockheed Martin (LMT) is in pretty much the same position as Northrop Grumman.
Many of its products and services are mission critical in nature and will not see steep cuts in demand from military budget cuts. Although the Pentagon is expected to cut its orders for the new F-35 fighters down by 33 over the 5-year period starting in 2015.
However, the program is still going to produce almost $400 billion of revenue for LMT by the time it is all done and that doesn’t include orders from partner nations likethe UK, Italy, Norwayand Canada.
Thanks to the still bright prospects and strong fundamentals LMT is also a strong buy at the current price.
The headlines often tell one story while an in-depth investigation reveals another. The pending budget cuts may look bad on the surface but a deeper look shows that they may actually be great news for many defense contractors.
Louis Navellier is the editor of Blue Chip Growth.