Best Stocks to Buy Under Trump: Lockheed Martin (LMT)
Lockheed Martin Corporation (NYSE:LMT) might seem a little counterintuitive, given that President-elect Trump just called out the defense contractor — again — about the pricing of LMT’s F-35 program.
Still, Trump also has called out the aging fleet of ships and aircraft within our military’s arsenal, and has pledged to reinvest in our defense system. That means a boon for defense contractors, and yes, that includes Lockheed Martin.
In fact, Lockheed is a win-win because in addition to retooling conventional military gear, it is a leader in 21st century warfare technology including drones and “smart” bombs.
The threat of war and military action is a constant under any president, but geopolitical concerns are on the rise all over the world right now and harsher language towards nations like China and Russia makes the need for military upgrades particularly urgent.
Beyond the 2017 outlook under Trump, you might think LMT stock suffered under President Obama and military cutbacks, but that’s simply not true. Right now, Lockheed is riding six consecutive quarters of year-over-year revenue expansion and saw its shares rise 20% across January through November 2016 before the vote was tallied.
This track record of success coupled with a more favorable environment in Washington bodes very well for LMT stock in the New Year. And in case you’re still worried about that Trump comment? Wall Street shook that off within hours.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not hold a position in any of the aforementioned securities.