Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.
Lockheed Martin (NYSE: LMT), the world's largest military weapons manufacturer, is the favorite conservative stock of Rich Moroney, editor of Dow Theory Forecasts. The advisor notes,"Lockheed generates about 80% of sales to the U.S. government. Lockheed is the prime contractor for the F-35 Joint Strike Fighter, a large and well-funded defense program -- and one of the company's most significant development projects.
"Lockheed has been working to diversify its defense and intelligence work, as well as non-defense government work. Its information-systems and technology-services businesses have been growing nicely, as the government is increasingly outsourcing.
"In August, Lockheed was chosen as the prime contractor for NASA's successor to the space shuttle -- an award with an initial contract value of $4.2 billion.
"At 16 times estimated year-ahead earnings of $5.55 per share, the stock trades at a discount to its five-year average forward P/E of 17 and its peer-group average of 21. Lockheed is a Focus List Buy and a Long-Term Buy."
To see Rich's favorite speculative idea for 2007, click here.
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Reader Comments (Page 1 of 1)
1-06-2007 @ 10:31AM
BILL HARDY said...
Sir, you couldn't have picked a better stock, up over 50 dollars a share THIS YEAR. What a winner!
As a 30+ year employee of Lockheed at the Kennedy Space Center I am proud of our company. A little
"insider info" LMT will split very soon and it will be a great investment stock. Get Yours Then! Remember this... as long as there are wars and rumors of war... LMT will keep growing! Lockheed will be the company to produce the tools we need to keep good ole USA strong and secure!