"Partial insulation from the economic slowdown, coupled with new military-aircraft programs, give Lockheed Martin (NYSE: LMT) attractive capital-gains potential over the next several years," says Richard Moroney.

In his blue chip oriented Dow Theory Forecasts, the advisor explains, "A diversified business mix provides investors a measure of safety in a dif?cult economic climate. The stock is a Focus List Buy."

"Lockheed seems well-positioned with regards to the U.S. defense budget, with very little exposure to Iraq. The company is capable of growing pro? ts even if the new U.S. president pulls troops out of the country.

"While defense-spending growth is likely to slow in coming years, ongoing security threats and the need to replace aging equipment should keep the baseline defense budget, which excludes war-related costs, growing through at least 2012.

"A diversified business mix provides investors a measure of safety in a dif?cult economic climate. After the Air Force, Lockheed's next-largest end market is civil government and homeland security, accounting for 26% of revenue.

"The U.S. Navy accounts for 20% of sales and the Army 10%. About 13% of sales are international, and the U.S. communications industry accounts for 3%.

Swing trading is a strategy in which stocks are bought for expected gains in a period of weeks to months, and a leader in this area is Melvin Pasternak.

The editor of Swing Trader says that in the current market environment, his intention is to "go long on stock with positive earnings surprises and strong technicals." One candidate that meets this criteria is Boeing Co. (NYSE: BA).

The advisor explains, "Wall Street had estimated BA would earn $1.16 per share on $16.2 billion in sales. Instead, the aircraft giant made $1.35 per share on $17 billion in revenues. When results were announced, the shares were trading near $104; they subsequently gapped up to near $108."

Pasternak continues, "Although BA was not able to hold its gain given the massive overall market selling pressure, it finished virtually unchanged during last week's decline. In so doing, its relative strength soared. When the market stabilizes, it should be one of the leaders of a recovery rally."

Technically, he states, "BA remains well above its 10-week moving average. It is also above the upward-sloping 30-week, the signature of a stage II advance. Technically, the ADX and MACD remain on strong buy signals."

The technician concludes. "Although the stock has been overbought on measures such as stochastics and RSI for some time, it has been able to continue its advance. I think BA can trade much higher and have set a target of $119.95. I would exit the position if it breaks a mid-June low of $93.58."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

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.