Top 5 Defense Stocks To Own For 2015


CHICAGO (TheStreet) — Even as Lufthansa became the launch customer for Boeing’s (BA) new 777-9X, the airplane maker also apparently was sealing the fate of the three-decades-old C-17 cargo aircraft.

Lufthansa said Thursday it would be the launch customer for 34 of the Boeing 777-9x, a new 400-seat plane that will be delivered around the end of the decade. Lufthansa’s announced 59-jet order also will include 25 Airbus A350-900 jets. On Wednesday, Boeing said it would discontinue C-17 production and close its Long Beach plant in 2015, potentially idling 3,000 workers. [Read: US Airways/American Workers’ Merger Blitz Is Unique, Expert Says]


Richard Aboulafia, a aviation consultant with the Teal Group, said that in sum the two announcements indicate that “the defense market is heading down and the civil aviation market is heading up.”

Top 5 Defense Stocks To Own For 2015: Lockheed Martin Corporation(LMT)

Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.


Advisors’ Opinion:

  • [By Rich Smith]

    “Get those birds airborne”? How do you say that in Italian?
    Meanwhile, Boeing-rival Lockheed Martin (NYSE: LMT  ) won a warplane contract of its own. Thursday saw the Pentagon authorize $70.4 million in “long-lead” purchases by Lockheed, preparatory to that company’s building seven conventional take-off and landing F-35A fighter jets, and one short take-off, vertical landing variant F-35B fighter. All eight planes are on order by the Italian Air Force under a foreign military sales contract.

  • [By Lee Jackson]

    Lockheed Martin Corp. (NYSE: LMT) was downgraded to Sector Perform from Outperform at RBC Capital Markets.

    Lululemon Athletica Inc. (NASDAQ: LULU) was reiterated as Neutral but the price target was raised to $78 from $73 (versus $70.10 close) at Credit Suisse.

  • [By Rich Smith]

    Lockheed Martin (NYSE: LMT  ) landed two contracts in Tuesday’s list of new Pentagon spending awards — one large, one not so much.

    The bigger of Lockheed’s two contract wins was actually a modification to an existing contract. Lockheed will receive $101.6 million to pay for “re-phasing” a Spacecraft Integration and Test contract to put it in line with new launch dates for a pair of Defense Meteorological Satellite Program, or DMSP, launches, specifically Flight 19 and Flight 20.

Top 5 Defense Stocks To Own For 2015: Raytheon Company(RTN)


Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.


Advisors’ Opinion:

  • [By Rich Smith]

    A maker of advanced components and composite assemblies for commercial aviation, defense, and space companies, Reinhold is 85 years old and counts among its customers everyone from makers of commercial airline seats to Raytheon (NYSE: RTN  ) , which uses the company’s components in the manufacture of Patriot-2 and Standard Missiles. In announcing the deal, HEICO called Reinhold’s “significant presence on key missile defense programs … very attractive.”

  • [By Rich Smith]

    The Department of Defense issued $312.5 million worth of new contract awards