Credit: Shutterstock photoA black, white, and grey short-sleeved Columbia button-down, loose-fit khakis, and pair of white Reebok's. I remember my parents telling me they remember exactly where they were, what they were doing, and what they wore when they heard that President Kennedy had been assassinated. It was one of those moments that defines a generation. Up until 9/11, my generation didn't have one of those moments but on that crisp September morning everything changed.
Today, as I wrestled with exactly how to go about writing this, I cued up a video recording showing the moments after the first plane hit the World Trade Center. The video ended with the second plane's impact and the narrators crying, shrieking, leaving their apartment and yelling "I love you" as they ran down stairs. It choked me up, all six feet, three inches, and two-hundred forty pounds of me. I nearly lost in and burst into tears at my desk as I thought back on that day. A black, white, and grey short-sleeved Columbia button-down, loose-fit khakis, and a pair of white Reebok's.
Eerie Similarity
Last night President Obama addressed the current situation on the Syria-Iraq border and the threat of I.S.I.L. The situation feels eerily similar to what our nation faced then. While I watched I couldn't help but think about the war we just fought and how I worried about my friends and family in the military. America is weary, tired, and exhausted from Iraq and Afghanistan. Nobody wants another costly and deadly military invasion and occupation.
But don't think for one second that we can't rise up at the drop of a dime to defend our country. Since 9/11 the U.S. has adapted and become more prepared for future attacks. There are several companies that provide the backbone of the military complex that helps protect our citizens home and abroad. One such company is Lockheed Martin ( LMT ).
Lockheed Martin
Lockheed is a Zacks Rank #2 (Buy) engaged in the research, design, development and manufacture of advanced-technology systems, products and services. The crown jewel of its fleet is the F-35 Lightning II, also known as the Joint Strike Fighter. The F-35 is a state-of-the-art military aircraft with a top speed of Mach 1.6 with a combat radius of over 600 miles and a weapons payload of 18,000 lbs.
Eleven analysts have raised current year earnings estimates over the last 60 days. These revisions have pushed consensus for this year up from $10.98 to $11.23. The bullish stance has helped the stock reach new heights over the last several weeks with the stock hitting a fresh 52-week high at $177.19 on August 27 th . This mild pullback we've seen over the last few days hasn't violated the bullish trend. The stock still trades well above its 40-day moving average, an indicator that provided support during the last big run from late October through April.
General Dynamics
While Lockheed helps the U.S. maintain air superiority, it's General Dynamics ( GD ) that gives us command of the sea. Recently, the company announced a $17.6 billion contract for 10 Virginia-class submarines. These vessels are designed from the keel up for the full range of 21 st century mission requirements including anti-submarine and surface ship warfare and special operations support.
These behemoths displace 7,800 tons and are 377 feet long with a 34 foot diameter. They can dive over 800 feet and carry Mark 48 advanced capability torpedoes and Tomahawk land-attack missiles.
Analysts that were previously bullish on the stock are likely to revise their numbers even higher in light of this news if they hadn't priced it in already. Fifteen analysts have revised their current year numbers for GD in the last sixty days, helping give the stock a Zacks Rank #2 (Buy). These revisions have pushed consensus up from $7.32 all the way to $7.53. Similar revisions have been seen for the current quarter, next quarter and next year.
General Dynamics stock has been breaking out to new highs with even more ferocity than Lockheed. After breaking into triple-digit territory in February of this year, GD has continued to make new highs consistently. The stochastics are showing a bit of an overbought condition right now, but that happens with stocks that are firmly in uptrends like GD.
The last push above the 40-day moving average happened in mid-August with the stock trading in the $117 range. After breaking out above $121, GD has been hitting fresh highs over the last couple of weeks. You may want to wait for a small pullback and a stochastic cross below 50 to initiate a position.
Never Forget
It's important to remember the reasons why America spends so much money on its military. It's not all about lining the pockets of politicians and their friends. America spends money to defend its citizens and remember those we lost. We will never forget what happened that fateful day in September 2001. Hopefully we can avoid something like that every happening again. These are two companies trying to make sure it doesn't.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
