In times of global trouble, investors can turn to shares of defense company Lockheed Martin and find “a nice safe dividend paying stock that the conservative investor can hold and sleep well at night,” Seeking Alpha suggests.
New developments in the world of cyber security present an opportunity for growth in the Bethesda, Maryland company, Greg Vanderford writes for Seeking Alpha.
“Lockheed Martin (NYSE:LMT) has been making advanced weapons for the military for decades and advanced aircraft for over a hundred years. So the company knows a thing or two about its industry. But what many investors may not know is that LMT also writes the software that goes into the many highly advanced weapon systems that it sells to the military,” he wrote.
“More specifically, LMT writes encrypted software that makes it next to impossible for a hacker to gain access to the weapons systems that are ultimately used to defend the country against both traditional military rivals as well as the modern threat of terrorism. This is a market that has major growth potential for LMT, especially in the current environment of global fear of terrorism.”
To be sure, the war against global terrorism is expect to boost shares of other defense companies as well.
Raytheon Co. and Northrop Grumman Corp. are among companies poised to benefit the most, analysts said.
"These stocks offer investors a positive exposure to geopolitical risks where the so-called threat environment keeps increasing and that's only going to benefit the defense contractors," David Klink, senior equity analyst at Huntington National Bank, told Reuters.
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