The Surprisingly High Yields of Defense Contractors: Lockheed Martin Corporation (LMT) and More

The recent stock declines provide an opportune time to enter the stocks. With the earnings estimates increasing, it suggests the market is very disconnected from the facts. Revenues might be declining, but the companies have been able to reduce costs at a faster pace again highlighting how the general market mistakenly focuses on the top line instead of the more important bottom line.

The sequester remains a risk that is clearly built into these stocks already. The next few weeks will no doubt be turbulent for defense stocks. In the end, politicians will likely find a solution that doesn’t involve dramatic cuts to defense spending thereby rewarding patient investors.

The article The Surprisingly High Yields of Defense Contractors originally appeared on Fool.com and is written by Mark Holder.

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