Buy Lockheed Martin Corporation Stock for Long-Term Portfolio Defense

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Lockheed Martin Corporation (NYSE: LMT ) is the largest defense contractor in the world. It dwarfs the competition in both revenue and as a pure defense play. And of the Top 10 global defense firms, LMT stock had the biggest revenue growth of all of them in 2016.

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That trend is not likely to change moving forward.

Four other nations have defense contractors in the world's top 10, but that means 60% of the top 10 U.S.-based companies. That doesn't mean these firms are getting all their business from the U.S. defense community. Most have contracts with allies around the world for not only new equipment, but for training, maintenance and upgrades.

This is where the big money is in defense and why LMT stock should be on your radar. Not unlike car dealerships, while sales make headlines, the big money is in the repair shops. You will see a headline when Lockheed announces a deal worth $37 billion for 440 F-35s to 11 nations, which happened in June.

The Key to LMT Stock

But the fact is, once they get these planes, they need to be trained in flying them, maintaining them and upgrading them for years, even decades, to come.

And so it is with all this major equipment. If you're spending $84 million on a plane or billions on a ship, keeping it in top shape is essential. And who better to do that then the company that built them?

Lockheed is No. 1 because it sticks to what it does well - defense. LMT stock has significant assets on air, land and sea to back it up. And the company is always looking to innovate.

Most recently, LMT has begun moving forward with laser weapons to replace traditional munitions-based weapons. And given the advances made in laser weapons, they can now fit on helicopters and fighter aircraft. That means less volatile munitions and more firepower for aircraft that couldn't carry similar tactical weaponry previously.

And given the state of the world right now, defense is also - for good or bad - a growth industry. Between North Korea and Iran there are certain challenges. But add to that a more expansive China and Russia, as well as increasing terror threats, and the need to build out a 21st Century defense force is a national priority.

Any growth in this sector means growth for LMT stock.

LMT stock has outperformed all the U.S. major averages year-to-date. That means, as you read the headlines of how well the Dow Jones Industrial Average or S&P 500 is doing, Lockheed is doing better.

What's more, LMT stock's near-2.6% dividend is much bigger than the dividend for the average S&P 500 stock.

In an increasingly dangerous world, the best offense is a good defense stock.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth , Emerging Growth, Ultimate Growth , Family Trust and Platinum Growth . His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com . Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.

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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.

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