5 Best Stocks That Will Benefit from Biden’s $6 Trillion Plan

1. Lockheed Martin Corporation (NYSE: LMT)

Number of Hedge Fund Holders: 50

Lockheed Martin Corporation (NYSE: LMT) is a Maryland-based firm that makes and sells weapons, aviation products, and other technologies. It was founded in 1995 and is placed first on our list of 10 best stocks that will benefit from Biden’s $6 trillion plan. The company’s shares have returned more than 15% to investors in the past few months. President Biden has set aside more than $753 billion in defense spending  as part of the $6 trillion plan and Lockheed Martin could be one of the top beneficiaries of this spending.  

On June 4, Lockheed Martin Corporation (NYSE: LMT) announced that it had inked a deal worth over $1 billion with the US government for Space Based Infrared Surveillance contractor logistics support. 

Out of the hedge funds being tracked by Insider Monkey, New York-based firm Arrowstreet Capital is a leading shareholder in Lockheed Martin Corporation (NYSE: LMT) with 1.5 million shares worth more than $590 million. 

In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Lockheed Martin Corporation (NYSE: LMT) was one of them. Here is what the fund said:

“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”

You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.

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