Taking a look at the defense industry today, I am focusing on Lockheed Martin. You know this company from their aerospace and defense contracts with the US Government.

Most recently Lockheed Martin was awarded a direct commercial sale contract by Eurocopter. The contract is to integrate the Hellfire II(TM) missle onto the Helicoptere d’Appui Destruction (HAD) Tiger attack helicopter. This is definitely good news for the company as the wars in Iraq and Afghanistan continue.

If we take a look at the financials, they have 5% growth based on next year’s numbers and currently trade at 16 times earnings. Currently the stock is below the 52 week high and if you look at the chart it’s pretty much a roller coaster. The good news here is there isn’t much insider selling, the fundamentals look great and the short interest is next to nothing so you have a stable stock here in the 90s.

I’d like to see it come down a little more before I bought it, but based on the recent charts, the lowest you are likely to see it right now is about 94 with a high at 100.

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