Actionable news
All posts from Actionable news
Actionable news in LMT: LOCKHEED MARTIN Corp,

It's a scary world...except for defense companies

Truck rams crowd in Nice, France

Defense contractors are cashing in on today's scary world.

Lockheed Martin (LMT), the global leader in making weapons, reported a jump in profits on Tuesday and ramped up its outlook for the rest of the year amid strong defense spending by major governments.

The U.S. defense contractor's stock climbed 2% to another record high, up an impressive 20% this year alone. Rival defense stocks Northrop Grumman (NOC) and Raytheon (RTN) also rose to fresh all-time highs and continued to outpace the broader markets.

Clearly, it's a great time to be in the war business. There is no shortage of conflicts around the world to support sophisticated weapons like Lockheed's Hellfire missiles and F-35 fighter jets. The future is also looking bright for defense spending under either Hillary Clinton or Donald Trump.

That's why Richard Safran, an analyst who covers Lockheed, said he's "really bullish" on defense stocks and believes the industry is in the early days of a new 20-year spending cycle.

"You're looking at substantial and consistent increases in defense spending," said Safran, director of equity research...