3 Stocks to Buy Still Benefiting From Military Spending

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The expectation was that, as the wars in Afghanistan and Iraq wound down over the past few years, military and defense spending around the world would decline. The Pentagon announced budget cuts and defense contractors prepared for some serious belt-tightening.

U.S._Military_Deploys_Apache_Helicopters_in_Fight_Against_ISIS.jpgHowever, the reality has not actually played out that way as global hot spots continue to pop up around the world, and particularly in the Middle East, U.S.-involvement appears to be on the verge of ramping up once again.

In addition, a lot conventional weapons systems and equipment are becoming outdated, and we may well see an upgrade and replacement cycle soon.

If we look at the defense industry with Portfolio Grader, we find that many of these stocks should be considered for our portfolio today.

Lockheed Martin (LMT)

Lockheed Martin LMTLockheed Martin (LMT) is the largest defense contractor and weapons manufacturer in the world. While sales are down slightly year rover year, Lockheed Martin has improved margins and earnings are still increasing nicely for the industry leader. Wall Street continually underestimates Lockheed Martin’s ability to grow, and Lockheed Martin has posted five consecutive earnings surprises.

During the last month, analysts have been raising their estimates for Lockheed Martin, and LMT shares are still attracting buying interest from the large institutions that want exposure to the defense industry. Lockheed Martin stock is currently ranked “A” by Portfolio Grader and is a “strong buy.”

General Dynamics (GD)

General Dynamics NYSE:GDGeneral Dynamics (GD) is another large defense company that is continually surpassing Wall Street’s expectations. General Dynamics is the fourth-largest defense contractor in the world and is involved in several aspects of the defense industry.

General Dynamics makes electronics and IT systems for weapons systems, combat systems and vehicles, and General Dynamics are also the second-largest military ship builder. General Dynamics also has a strong commercial aircraft division that makes the Gulf Stream series of jet aircraft.

General Dynamics stock has been ranked “A” since January, and investors who paid attention to General Dynamics’ upgrade by Portfolio Grader have enjoyed very nice gains in 2014. There are more profits to come as General Dynamics stock is still a “strong buy.”

Astronics (ATRO)

astronics-atro-stock-logo-185Astronics (ATRO) makes products of the aerospace and defense industry and business has been fantastic. Astronics makes aircraft lighting and safety systems, aircraft structures and avionics for military and commercial aircraft manufactures. The test systems division of Astronics helps develop and test communication and weapons testing systems and simulators.

In the most recent quarter, Astronics’ earnings grew by 138% year over year as series of acquisitions began to pay off. Astronics stock is ranked “B” by Portfolio Grader and is a “buy” at the current price.

The defense industry is unfortunately probably going to continue to be a growth sector for many years to come. Investors can benefit by using Portfolio Grader to find the very best defense stocks to include in their portfolio.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip GrowthEmerging GrowthUltimate GrowthFamily Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2014/11/3-military-spending-lockheed-martin-lmt-general-dynamics-gd-astronics-atro/.

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