Tag Archives: LMT

Hot Clean Energy Stocks To Watch For 2021

It’s make-or-break time for the big banks this week as JPMorgan, Citigroup and Wells Fargo gear up for earnings Friday morning.

Financials were staging a comeback Thursday morning, with the XLF ETF rallying more than 1 percent. Despite the surge, the group is still the worst-performing sector in the past month. However, “Options Action” trader Mike Khouw says a recent spike in options activity for the group could suggest the tides are about to change.

“The XLF saw above-average activity this week,” Khouw said Wednesday on CNBC’s Fast Money. “[Thursday] we saw approximately 1.5 times the average daily volume.”

Three of the financial ETF’s top holdings JP Morgan, Citigroup and Wells Fargo are expected to move around 3 percent in either direction when they report this Friday. Of the group, Khouw suggests investors keep a close eye on Wells Fargo.

Hot Clean Energy Stocks To Watch For 2021: Lockheed Martin Corporation(LMT)

Lockheed Martin Corporation, incorporated on August 29, 1994, is a global security and aerospace company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Company operates in five segments: Aeronautics; Information Systems & Global Solutions (IS&GS); Missiles and Fire Control (MFC); Mission Systems and Training (MST), and Space Systems. The Company provides a range of management, engineering, technical, scientific, logistics and information services. The Company’s areas of focus are in defense, space, intelligence, homeland security and information technology, including cyber security. It serves customers, including military services, the United States Navy and various government agencies of the United States and other countries, as well as commercial and other customers.


The Company’s Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. The Company’s Aeronautics segment programs include F-35 Lightning II Joint Strike Fighter, which is an international multi-role, multi-variant, fifth generation stealth fighter; C-130 Hercules, which is an international tactical airlifter; F-16 Fighting Falcon, which is an international multi-role fighter; F-22 Raptor, which is an air dominance and multi-mission fifth generation stealth fighter, and C-5M Super Galaxy, which is an airlifter.

The Company’s F-35 program consists of a development contracts, multiple production contracts and sustainment activities. The Aeronautics segment produces and provides support and sustainment services for the C-130J Super Hercules, as well as upgrades and support services for the legacy C-130 Hercules across the world fleet. The Company produces F-16 aircraft for international ! customers. It also provides service-life extension, modernization and other upgrade programs for its customers’ F-16 aircraft. Its Aeronautics segment provides sustainment services for the existing United States Air Force C-5 Galaxy fleet and modernization activities to convert 49 C-5 Galaxy aircraft to the C-5M Super Galaxy configuration. The Company has delivered over 30 C-5M aircraft under these modernization activities. In addition to the aircraft programs, the Aeronautics segment is involved in advanced development programs incorporating design and rapid prototype applications.

The Company’s Advanced Development Programs (ADP) organization, also known as Skunk Works, is focused on future systems, including unmanned aerial systems and next generation capabilities for advanced strike, intelligence, surveillance, reconnaissance, situational awareness and air mobility. The Company continues to explore technology advancement and insertion in its existing aircraft. It is engaged in numerous network-enabled activities and also continues to invest in new technologies.

Information Systems & Global Solutions

The Company’s Information Systems & Global Solutions segment provides advanced technology systems and integrated information technology solutions, and management services across a range of applications for civil, defense, intelligence and other government customers. The Company’s IS&GS segment supports the needs of customers in data analytics, data center operation and air traffic management. The IS&GS provides network-enabled situational awareness and integrates global systems to help its customers gather, analyze and securely distribute critical data.

The IS&GS segment programs include the Hanford Mission Support contract, which is a program to provide infrastructure and site support services to the department of energy; En Route Automation Modernization (ERAM) contract, which is a program to replace the Federal Aviation Administration’s infrastructur! e with a ! modern automation environment that includes new functions and capabilities; National Science Foundation Antarctic Support program, which manages sites and equipment to enable universities, research institutions and federal agencies to conduct scientific research in the Antarctic, and QTC business, which provides information technology (IT)-enabled case management of outsourced medical evaluations for federal, state and commercial customers. Its Technical Services business provides a portfolio of technical and sustainment services to enhance its customers’ mission success, with core capabilities in engineering services; global aviation solutions; command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) product support; counter threat services, and education and sustainment services.

Missiles and Fire Control

The Company’s Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support and integration services; energy management solutions, and manned and unmanned ground vehicles. The Company’s MFC segment programs include Patriot Advanced Capability-3 (PAC-3); Terminal High Altitude Area Defense (THAAD) air and missile defense programs; Multiple Launch Rocket System (MLRS); Hellfire; Joint Air-to-Surface Standoff Missile (JASSM); Javelin tactical missile programs; Apache; Sniper; Low Altitude Navigation and Targeting Infrared for Night (LANTIRN) fire control systems programs, and Special Operations Forces Contractor Logistics Support Services (SOF CLSS).

The Company’s PAC-3 is a defensive missile for the United States Army and international customers designed to intercept and eliminate incoming airborne threats using kinetic energy. THAAD is a transportable defensive missile system for the United States Government and international customers designed to en! gage targ! ets both within and outside of the earth’s atmosphere. MLRS is a mobile, automatic system that fires surface-to-surface rockets and missiles from the M270 and high mobility artillery rocket system platforms produced for the United States Army and international customers. Hellfire is an air-to-ground missile used on rotary and fixed-wing aircraft, which is produced for the United States Army, Navy, Marine Corps and international customers. JASSM is an air-to-ground missile launched from fixed-wing aircraft, which is produced for the United States Air Force and international customers. Javelin is a shoulder-fired anti-armor rocket system, which is produced for the United States Army, Marine Corps and international customers.

The Company’s Apache fire control system provides weapons targeting capability for the Apache helicopter for the United States Army and international customers. Sniper is a targeting system for several fixed-wing aircraft and LANTIRN is a combined navigation and targeting system for several fixed-wing aircraft. Both Sniper and LANTIRN are produced for the United States Air Force and international customers. The SOF CLSS program provides logistics support services to the operations forces of the United States military.

Mission Systems and Training

The Company’s Mission Systems and Training segment provides design, manufacture, service and support for various military and civil helicopters, ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defense systems; radar systems; the littoral combat ship (LCS); simulation and training services, and unmanned systems and technologies. In addition, MST supports the needs of customers in cybersecurity, and delivers communication and command capabilities through complex mission solutions for defense applications. MST’s programs include Black Hawk and Seahawk helicopters; Aegis Combat System (Aegis); LCS; Space Fence; Advanced! Hawkeye ! Radar System, and TPQ-53 Radar System.

The Company’s Aegis serves as a fleet ballistic missile defense system for the United States Navy and international customers, and is also a sea and land-based element of the United States missile defense system. Its LCS is a surface combatant ship for the United States navy designed to operate in shallow waters and the open ocean. The Company’s MH-60 is a maritime helicopter mission system and sensor, including the digital cockpit and weapons. ItsTPQ-53 Radar System is a sensor that locates and neutralizes mortar and rocket threats, produced for the United States Army and international customers. Its Advanced Hawkeye Radar System is an airborne early warning radar, which is provided by MST for the E2-C/E2-D aircraft produced for the United States Navy and international customers. The Company’s Space Fence system is a ground-based radar system for the United States Air Force designed to track the objects in space and to prevent space-based collisions.

Space Systems

The Company’s Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems, and space transportation systems. The Company’s Space Systems segment programs include Space Based Infrared System (SBIRS), Advanced Extremely High Frequency (AEHF) system, Global Positioning System (GPS) III, Geostationary Operational Environmental Satellite R-Series (GOES-R), Mobile User Objective System (MUOS), Trident II D5 Fleet Ballistic Missile and Orion Multi-Purpose Crew Vehicle (Orion).

The Company’s SBIRS provides the United States Air Force with missile launch detection and tracking capabilities. AEHF system is secure communications satellites for the United States Air Force. GPS III is a program to modernize the GPS satellite system for the United States Air Force. GOES-R is the National Oceanic and Atmospheric Association’s meteorological satellites. MUOS is a narrow-band! satellit! e communication system for the United States Navy. The Trident II D5 Fleet Ballistic Missile is a program with the United States Navy for the only submarine-launched intercontinental ballistic missile in production in the United States. Orion is a spacecraft for the National Aeronautics and Space Administration (NASA) utilizing new technology for human exploration missions beyond low earth orbit.

Advisors’ Opinion:

  • [By Money Morning Staff Reports]

    The VQScore system gives Lockheed Martin Corp. (NYSE: LMT) a perfect score of 4.75. This defense stock is a staple of the U.S. defense industry, and it’s the company behind the F-35 program. Tens of billions of dollars are pouring into fighter jets right now, especially the Lockheed F-35 and Boeing’s F-15EX.

  • [By Rich Smith]

    Today, SpaceX continues to charge the U.S. government significantly less (than United Launch Alliance does) for launch services. However, a pair of recent contracts totaling $739 million in value demonstrates that the U.S. government is in fact willing to pay ULA more than SpaceX for the same work — at least sometimes. But perhaps even more important to the future prospects of ULA and its co-owners Boeing and Lockheed Martin (NYSE:LMT), ULA’s rockets are getting cheaper and moving closer to price parity with SpaceX’s.

  • [By Lou Whiteman]

    Lockheed Martin (NYSE:LMT) has been awarded a nine-figure down payment on a $15 billion missile-defense system for Saudi Arabia, a move that should go a long way toward alleviating concerns that the massive deal could be in jeopardy due to tensions between the Saudis and western governments.

  • [By Lou Whiteman]

    While no one is suggesting the spigot could be turned off on the Pentagon, the amount of funding the department receives will determine how quickly it moves to refresh its warfighting capabilities. A tight budget could materially impact the revenue outlook for Huntington Ingalls (NYSE:HII), for example, if it means slowing the pace of adding to the Navy fleet, or Lockheed Martin (NYSE:LMT) if the Air Force must stagger its future orders of new warplanes.

Hot Clean Energy Stocks To Watch For 2021: Western Union Company (WU)

The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions. The Consumer-to-Consumer segment offers money transfer services. This segment provides various options for sending funds, including walk-in and online money transfer, as well as account based money transfer services through a network of third-party agents using multi-currency and real-time money transfer processing systems. The Consumer-to-Business segment offers options to make one-time or recurring payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers, government agencies, and other businesses. It also provides various products, which provide consumers choices as to the payment channel and method of payment, including Speedpay, Pago F谩cil, and Western Union Payments. This segment offers its services primarily through the phone and Online, as well as through its agent networks and selected company-owned locations. The Business Solutions segment facilitates payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises and other organizations, as well as for individuals. This segment provides its services through the phone, partner channels, and the Internet. As of December 31, 2015, the company had a network of approximately 500,000 agent locations in approximately 200 countries and territories. The Western Union Company was incorporated in 2006 and is headquartered in Englewood, Colorado.

Advisors’ Opinion:

  • [By Stephan Byrd]

    TRADEMARK VIOLATION NOTICE: “The Western Union Company (WU) Position Increased by Van ECK Associates Corp” was first reported by Ticker Report and is the property of of Ticker Report. If you are accessing this piece on another site, it was stolen and republished in violation of U.S. & international trademark and copyright law. The legal version of this piece can be viewed at www.tickerreport.com/banking-finance/4201508/the-western-union-company-wu-position-increased-by-van-eck-associates-corp.html.

  • [By Garrett Baldwin]

    Before the bell, the U.S. Bureau of Economic Analysis reported its second GDP estimate for the fourth quarter. U.S. economic growth came in at 2.6%, a figure that topped consensus expectations. Q2 and Q3 2018 GDP growth came in at fabulous levels – 4.2% and 3.4%, respectively. However, investors predicted the reading would come in lower due to the government shutdown during the fourth quarter. In other economic news, the Department of Labor this morning reported weekly jobless claims at 225,000. That figure is slightly higher than the 220,000 expected by economists. The price of Bitcoin is currently hovering just under $4,000. We’ve been watching a long process of consolidation at these levels for several weeks. Despite short-term pain in the markets, Money Morning’s David Zeiler outlines the bullish case for Bitcoin. How high can the price of Bitcoin go? David makes the bullish case that Bitcoin could hit $250,000 by 2025. For more on how to profit from Bitcoin’s next bull cycle, go here now.
    Stocks to Watch Today: JCP, JWN, ACI, BUD
    Shares of J.C. Penney Co. Inc.(NYSE: JCP) popped more than 16% after the embattled retail giant reported earnings. The company topped Wall Street expectations and announced plans to shutter another 18 department stores this year. The company’s balance sheet temporarily improved after it was able to reduce its massive inventory glut. The firm reported EPS of $0.18, topping forecasts by $0.08. Revenue came in at $3.79 billion. Shares of Anheuser Busch Inbev NV (NYSE: BUD) popped more than 5% after the beer brewing giant crushed Wall Street earnings expectations. The Budweiser and Corona maker announced plans to increase its non-alcoholic and low-alcohol drinks business, two areas that continue to show impressive and rising global demand. The Western Union Co. (NYSE: WU) is generating buzz after it announced a $1 billion stock buyback program. In addition, the payment giant said it would sell its Speedpay bill paying bu

  • [By Jordan Wathen, Matthew Frankel, CFP, and Dan Caplinger]

    Here’s why these Fool.com contributors think PayPal (NASDAQ:PYPL), Western Union (NYSE:WU), and Visa (NYSE:V) are worth adding to your portfolio.

    Don’t let a so-so quarter distract you from this company’s long-term potential

    Matt Frankel, CFP (PayPal): I’m generally a fan of any stock that stands to benefit from the gradual shift toward a cashless society, as I feel that the so-called War on Cash will be one of the greatest investment opportunities over the coming decades.

Hot Clean Energy Stocks To Watch For 2021: Hennessy Capital Acquisition Corp. II(HCACU)

We are a blank check company incorporated in April 2015 as a Delaware corporation formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.

Objective and Business Opportunity

While we may pursue an acquisition opportunity in any business, industry, sector or geographical location, we are focused on industries that complement our management team’s background and capitalize on the ability of our management team to identify and acquire a business, focusing on the industrial manufacturing, distribution or services sector in the United States (which may include a business based in the United States which has operations or opportunities outside of the United States). We are seeking to acquire one or more businesses with an aggregate enterprise value of approximately $500 million to $1 billion.   Advisors’ Opinion:

Hot Clean Energy Stocks To Watch For 2021: PDC Energy, Inc.(PDCE)

PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the United States. The company operates in two segments: Oil and Gas Exploration and Production, and Gas Marketing. The Oil and Gas Exploration and Production segment produces and sells natural gas to midstream service providers, marketers, and utilities; crude oil; and natural gas liquids. The Gas Marketing segment purchases, aggregates, and resells natural gas; and purchases natural gas produced by third party producers for resale. This segment markets natural gas to third-party marketers and natural gas utilities, as well as to industrial and commercial customers. As of December 31, 2014, it had approximately 250 million barrels of crude oil equivalent of proved reserves; and owned an interest in approximately 2,900 gross producing wells. The company was formerly known as Petroleum Development Corporation and changed its name to PDC Energy, Inc. in June 2012. PDC Energy, Inc. was founded in 1969 and is headquartered in Denver, Colorado.

Advisors’ Opinion:

  • [By Stephan Byrd]

    PDC Energy (NASDAQ:PDCE) last announced its earnings results on Wednesday, February 27th. The energy producer reported ($2.22) earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.56 by ($2.78). The firm had revenue of $386.40 million for the quarter, compared to the consensus estimate of $360.91 million. PDC Energy had a positive return on equity of 3.64% and a negative net margin of 10.52%. PDC Energy’s revenue for the quarter was up 39.4% on a year-over-year basis. During the same quarter last year, the business posted $1.17 EPS. Equities research analysts predict that PDC Energy Inc will post 2.36 earnings per share for the current year.

    TRADEMARK VIOLATION WARNING: “Prudential Financial Inc. Purchases 69,270 Shares of PDC Energy Inc (PDCE)” was first published by Ticker Report and is owned by of Ticker Report. If you are accessing this piece of content on another publication, it was stolen and reposted in violation of U.S. & international copyright law. The original version of this piece of content can be accessed at www.tickerreport.com/banking-finance/4215584/prudential-financial-inc-purchases-69270-shares-of-pdc-energy-inc-pdce.html.

    About PDC Energy

  • [By Shane Hupp]

    PDC Energy Inc (NASDAQ:PDCE) – Equities researchers at Seaport Global Securities cut their Q2 2019 earnings estimates for PDC Energy in a research note issued to investors on Wednesday, February 27th. Seaport Global Securities analyst M. Kelly now expects that the energy producer will post earnings of $0.40 per share for the quarter, down from their prior estimate of $0.46. Seaport Global Securities also issued estimates for PDC Energy’s Q3 2019 earnings at $0.49 EPS, Q4 2019 earnings at $0.57 EPS, FY2019 earnings at $2.07 EPS, Q1 2020 earnings at $0.77 EPS, Q2 2020 earnings at $0.66 EPS, Q3 2020 earnings at $0.74 EPS, Q4 2020 earnings at $0.83 EPS and FY2020 earnings at $3.00 EPS.

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on PDC Energy (PDCE)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Hot Clean Energy Stocks To Watch For 2021: Cytosorbents Corporation(CTSO)

CytoSorbents Corporation, a critical care focused immunotherapy company, engages in the research, development, and commercialization of medical devices with its platform blood purification technology incorporating a proprietary adsorbent polymer technology. Its principal product is CytoSorb device, an extracorporeal cytokine filter designed for the adjunctive therapy in the treatment of sepsis; for the adjunctive therapy in other critical care applications; the prevention of post-operative complications of cardiopulmonary bypass surgery and damage to organs donated by brain-dead donors prior to organ harvest; the treatment of cancer cachexia; and the prevention of transfusion reactions caused by contaminants in transfused blood products; and the prevention of contrast induced nephropathy, the treatment of drug overdose, and the treatment of chronic kidney failure. The company is also developing HemoDefend blood purification technology platform to reduce contaminants in the blood supply that can cause transfusion reactions or disease when administering blood and blood products to patients; and ContrastSorb for the removal of IV contrast in blood administered during CT imaging, an angiogram, or during a vascular interventional radiology procedure to reduce the risk of contrast-induced nephropathy. In addition, it is developing BetaSorb device for the prevention and treatment of health complications caused by the accumulation of metabolic toxins in patients with chronic renal failure; and DrugSorb, an extracorporeal hemoperfusion cartridge designed to remove toxic chemicals from the blood. The company was formerly known as MedaSorb Technologies Corporation and changed its name to CytoSorbents Corporation in May 2010. CytoSorbents Corporation was founded in 1997 and is based in Monmouth Junction, New Jersey.

Advisors’ Opinion:

  • [By Motley Fool Transcribers]

    Cytosorbents Corp (NASDAQ:CTSO)Q42018 Earnings Conference CallMarch 07, 2019, 4:45 p.m. ET

    Prepared Remarks Questions and Answers Call Participants
    Prepared Remarks:


  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Cytosorbents (CTSO)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    Cytosorbents Corp (NASDAQ:CTSO) COO Vincent Capponi sold 9,565 shares of the company’s stock in a transaction that occurred on Tuesday, August 28th. The shares were sold at an average price of $13.00, for a total value of $124,345.00. Following the completion of the transaction, the chief operating officer now owns 342,333 shares in the company, valued at approximately $4,450,329. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Hot Clean Energy Stocks To Watch For 2021: DHX Media Ltd.(DHXM)

DHX Media Ltd. develops, produces, distributes, broadcasts, and licenses television and film programs for conventional and specialty terrestrial and cable/satellite television broadcasters worldwide. The company focuses on childrens, youth, and family productions; offers animation programs; and provides production services. It exploits the companys own and third party brands in toys, games, apparel, publishing, and other categories; and holds broadcast licenses for Family Channel, Family Jr., T茅l茅magino, and Family CHRGD. In addition, the company sells initial broadcast rights, packages of programs, and reuse rights to existing series to individual broadcasters, as well as pre-sells series in development. Further, it produces and distributes media products, including approximately 35 owned Websites and approximately 50 online games to broadcast partners; licenses its brands, such as Teletubbies, Yo Gabba Gabba!, Caillou, Inspector Gadget, Johnny Test, Twirlywoos, Doozers, Busytown Mysteries, Degrassi, and Slugterra brands to third party developers for various platforms; and creates content for mobile platforms and publishes the content directly to consumers through paid subscription or download-to-own services. The company was formerly known as The Halifax Film Company Limited and changed its name to DHX Media Ltd. in March 2006. DHX Media Ltd. was incorporated in 2004 and is headquartered in Halifax, Canada.

Advisors’ Opinion:

  • [By Stephan Byrd]

    Dhx Media Com Vtg (OTCMKTS:DMQHF) and DHX Media (NASDAQ:DHXM) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

  • [By Max Byerly]

    Dhx Media Com Vtg (OTCMKTS:DMQHF) and DHX Media (NASDAQ:DHXM) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

  • [By Stephan Byrd]

    Dhx Media Com Vtg (OTCMKTS:DMQHF) and DHX Media (NASDAQ:DHXM) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

  • [By Joseph Griffin]

    Dhx Media Com Vtg (OTCMKTS:DMQHF) and DHX Media (NASDAQ:DHXM) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Best Heal Care Stocks To Invest In Right Now

Investment company P-Solve Investments Ltd buys Vanguard FTSE Developed Markets, Vanguard FTSE Emerging Markets, Schwab U.S. Broad Market, sells Vanguard Small-Cap Value during the 3-months ended 2017-09-30, according to the most recent filings of the investment company, P-Solve Investments Ltd. As of 2017-09-30, P-Solve Investments Ltd owns 12 stocks with a total value of $2.6 billion. These are the details of the buys and sells.

Added Positions: VEA, VOO, VWO, VTI, SCHB, ACWI, Reduced Positions: VBR, SPY, VNQI, VNQ,

For the details of P-Solve Investments Ltd’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=P-Solve+Investments+Ltd

These are the top 5 holdings of P-Solve Investments LtdVanguard S&P 500 (VOO) – 4,400,097 shares, 39.56% of the total portfolio. Shares added by 7.03%Vanguard FTSE Developed Markets (VEA) – 13,317,140 shares, 22.4% of the total portfolio. Shares added by 99.57%iShares Core S&P Small-Cap (IJR) – 6,494,318 shares, 18.51% of the total portfolio. Shares added by 0.65%SPDR S&P 500 (SPY) – 669,450 shares, 6.55% of the total portfolio. Shares reduced by 12%Vanguard Total Stock Market (VTI) – 939,233 shares, 4.73% of the total portfolio. Shares added by 11.34%Added: Vanguard FTSE Developed Markets (VEA)

P-Solve Investments Ltd added to the holdings in Vanguard FTSE Developed Markets by 99.57%. The purchase prices were between $41.01 and $43.57, with an estimated average price of $42.41. The stock is now traded at around $44.77. The impact to the portfolio due to this purchase was 11.18%. The holdings were 13,317,140 shares as of 2017-09-30.

Best Heal Care Stocks To Invest In Right Now: Lockheed Martin Corporation(LMT)

Advisors’ Opinion:

  • [By Rich Smith]

    So long, United Space Alliance (and your one-shot rockets), we hardly knew ye. Today, it’s SpaceX’s reusable Falcon 9 that’s all the rage in space — cheaper than the rockets designed by Lockheed Martin (NYSE:LMT) and Boeing (NYSE:BA) for their United Launch Alliance, flying more missions, and now “flight-proven” to boot.

  • [By Money Morning News Team]

    Lockheed Martin Corp. (NYSE: LMT) is the largest defense company on the planet as measured in market capitalization. It’s our No. 1 pick out of our top picks for several reasons. One is the breadth of its products and reach. It develops and manufactures security, defense, and technology products worldwide.

  • [By A.J. Bursick]

    Rather, investors should buy “good, quality companies – companies where the fundamental business case for owning them is unaffected by what the stock market happens to be doing. Lockheed Martin Corp. (NYSE: LMT), for instance, is one of my very favorites.”

  • [By Benzinga News Desk]

    The Pentagon is poised to review — and probably approve — a new helicopter from Lockheed Martin Corporation (NYSE: LMT) to transport heavy cargo for the Marine Corps in a program valued at as much as $29 billion: Link

Best Heal Care Stocks To Invest In Right Now: Lam Research Corporation(LRCX)

Advisors’ Opinion:


    The same case is made for Action Alerts PLUS holding Alphabet (GOOGL) and for Lam Research (LRCX) and Broadcom (AVGO) and Growth Seeker holding Amazon (AMZN) –and a host of other high-growth companies.

  • [By Ben Levisohn]

    Lam Research (LRCX) soared to the top of the S&P 500 today after beating earnings forecasts and raising its fourth-quarter guidance.

    Getty Images

    Lam Researchgained 6.9% to $136.17 today, while the S&P 500 declined 0.2% to 2,338.17.

    Credit Suisse analysts Farhan Ahmad and John Pitzer and argues that Lam Research’s “new trough is higher than [its] old peak.” They explain:

    We expect that bears will continue to argue that CY17 is a “Peak” year; however we think that investors are missing that it now costs >2x more to get incremental bit growth than three years ago. It is noteworthy that despite ~$17bn of memory WFE in 2016 both NAND and DRAM markets went from oversupply to undersupply – implying that new trough for memory investments is even higher than old peak (2010 memory peak had WFE of $12.6bn). We view Semi Growth, rising capital intensity, and growing China CapEx as secular multiyear themes, which could continue to provide growth in coming years. In addition, in case of tax reform there could be potential to return >$50 per share to shareholders by 2020…Increase TP to $160 (from $143), based on 12x of CY18 EPS plus net cash adj for taxes.

    Lam Research’s market capitalization rose to $22.2 billion today from $20.8 billion yesterday.

  • [By Dan Caplinger]

    Wednesday was a mixed day for the stock market, as the Dow Jones Industrials dropped by triple digits but other major benchmarks fared much better. Crude oil prices fell nearly $2 per barrel to $50.50, and that hurt energy companies, along with a poor earnings report from technology giant IBM. Yet the broader market held up better, and the Nasdaq Composite actually gained ground. In particular, some good news from a few individual companies helped hold the markets up, and CalAmp (NASDAQ:CAMP), Lithia Motors (NYSE:LAD), and Lam Research (NASDAQ:LRCX) were among the best performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so well.


    Lam Research (LRCX) has consistently outgrown the overall semiconductor-equipment market due to its high exposure to 3D NAND flash memory.

    Demand for wafer-fabrication equipment is notoriously volatile. However, over the last 90 days, the consensus profit estimate for this year jumped 17%, with 95% of analysts raising their targets.

Best Heal Care Stocks To Invest In Right Now: Adaptimmune Therapeutics plc(ADAP)

Advisors’ Opinion:

  • [By Jon C. Ogg]

    Adaptimmune Therapeutics PLC (NASDAQ: ADAP) was started with a Market Perform at Wells Fargo.

    Aqua America Inc. (NYSE: WTR) was raised to Overweight from Equal Weight and the price target was raised to $36 from $33 (versus a $31.19 close) at Barclays.

Best Heal Care Stocks To Invest In Right Now: Computer Sciences Corporation(CSC)

Advisors’ Opinion:

  • [By Monica Gerson] Related CSC Earnings Scheduled For May 24, 2016 8 Stocks You Should Be Watching Today Computer Sciences' (CSC) CEO Mike Lawrie on Q4 2016 Results – Earnings Call Transcript (Seeking Alpha)
    Related Earnings Scheduled For May 24, 2016 8 Stocks You Should Be Watching Today Hewlett Packard Enterprise Announces Plans for Tax-Free Spin-Off and Merger of Enterprise … (GuruFocus)

    Some of the stocks that may grab investor focus today are:

  • [By R. Chandrasekaran]

    Some of the outperforming stocks:

    NVDIA Corp (NASDAQ: NVDA) trading up about 5.7 percent with a range between $69.50 and $71.72.
    Amazon.com, Inc. (NASDAQ: AMZN) is gaining about 4 percent. The stock ranged between $770.94 and $787.73.
    Computer Sciences Corporation (NYSE: CSC) is gaining about 3.3 percent with the stock trading between $56.10 and $58.01.
    Microsoft Corporation (NASDAQ: MSFT) is adding about 3 percent with the stock ranging $59.78-$60.52.
    Alphabet Inc (NASDAQ: GOOGL) is gaining about 2.9 percent with the stock trading between $792.90 and $805.
    Intel Corporation (NASDAQ: INTC) is adding approximately 2.9 percent with shares trading in the range of $34.15-$34.60.
    Cisco Systems, Inc. (NASDAQ: CSCO) is gaining about 2.8 percent as the stock traded between $30.61 and $31.05.
    Salesforce.com, inc. (NYSE: CRM) is adding about 2.8 percent with the shares traded in the range of $75.41-$77.00

Best Heal Care Stocks To Invest In Right Now: Syngenta AG(SYT)

Advisors’ Opinion:


    Syngenta AG (SYT) CEO Erik Fyrwald said Wednesday that he was “entirely confident” the company’s $43 billion takeover by China National Chemical Corp. would close in the second quarter of this year and dismissed suggestions it would be disrupted by a third party.

  • [By Shanthi Rexaline]

    Agri-Input Companies — Seeds/ Fertilizers/Pesticides Manufacturers

    Monsanto Company (NYSE: MON): +68.82 percent since 2011. Syngenta AG (ADR) (NYSE: SYT): +56.26 percent since 2011. Mosaic Co (NYSE: MOS): -63.1 percent since 2011. Potash Corporation of Saskatchewan (USA) (NYSE: POT): -67.8 percent since 2011. CF Industries Holdings, Inc. (NYSE: CF): +5.04 percent since 2011. Agrium Inc. (USA) (NYSE: AGU): +1.10 percent since 2011.

    Agri-Finance Companies

Hot Medical Stocks To Buy Right Now

Quick Take

iRhythm Technologies (Pending:IRTC) intends to raise up to $86.25 million in
its IPO.

The company has a differentiated, long-term cardiac monitoring device that transmits data on patient heart activity.

While the company has not disclosed valuation, assuming it is in the neighborhood of $250 million, I would be in favor of the IPO stock.

To listen to this article, click the graphic below:


San Francisco-based iRhythm sells a medical device and related service that collects data on patient heart arrhythmias for clinical treatment purposes.

Hot Medical Stocks To Buy Right Now: Inovio Pharmaceuticals, Inc.(INO)

Advisors’ Opinion:

  • [By Lisa Levin]

    Inovio Pharmaceuticals Inc (NASDAQ: INO) shares were also up, gaining 24 percent to $8.84 following announcement of a clinical study for a HIV vaccine that had nearly 100 percent immune response.

  • [By William Patalon III]

    In a Private Briefing report in late July, we told you that tiny biotech Inovio Pharmaceuticals Inc. (Nasdaq: INO) had dosed its first patient in a Phase I clinical study to evaluate its synthetic vaccine for the Zika virus.

  • [By Keith Speights]

    A quick analysis of Inovio Pharmaceuticals’ (NASDAQ:INO) stock performance history shows plenty of twists and turns — from the company’s early biomedical days to its recent advances in developing a Zika virus vaccine. But this chart shows the story hasn’t been great for investors.

Hot Medical Stocks To Buy Right Now: Logitech International S.A.(LOGI)

Advisors’ Opinion:


    For his “Executive Decision” segment, Cramer once again sat down with Bracken Darrell, president and CEO of Logitech (LOGI) , the computer accessory maker with shares that are up 27% since Cramer last checked in back in November.

  • [By Lisa Levin]

    Mad Catz Interactive, Inc. (USA) (NYSE: MCZ) shares were also up, gaining 35 percent to $0.260 as the company disclosed that it has sold its Saitek simulation product line to Logitech International SA (USA) (NASDAQ: LOGI) for $13 million in cash.

Hot Medical Stocks To Buy Right Now: Lockheed Martin Corporation(LMT)

Advisors’ Opinion:

  • [By Money Morning Staff Reports]

    He recommends Lockheed Martin Corp. (NYSE: LMT), for example. On Tuesday, March 29, missile defense experts at Lockheed were officially tasked with building between 18 and 40 missile rocket interceptors to protect against incoming ballistic missile threats. That contract was worth $273.5 million.

  • [By Jim Cramer]

    LMT’s revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue appears to have trickled down to the company’s bottom line, improving the earnings per share.


  • [By Laurie Kulikowski]

    We rate LOCKHEED MARTIN CORP as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company’s strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. 

  • [By Money Morning News Team]

    Lockheed Martin Corp. (NYSE: LMT) is the largest defense company on the planet as measured in market capitalization. It’s our No. 1 pick out of our top picks for several reasons. One is the breadth of its products and reach. It develops and manufactures security, defense, and technology products worldwide.

Hot Medical Stocks To Buy Right Now: International Speedway Corporation(ISCA)

Advisors’ Opinion:

  • [By Monica Gerson]

    International Speedway Corp (NASDAQ: ISCA) is projected to report its quarterly earnings at $0.41 per share on revenue of $146.09 million. International Speedway shares declined 1.65 percent to close at $36.26 yesterday.

  • [By Monica Gerson]

    International Speedway Corp (NASDAQ: ISCA) is estimated to report its quarterly earnings at $0.41 per share on revenue of $146.09 million.

    Mitcham Industries, Inc. (NASDAQ: MIND) is projected to post a quarterly loss at $0.36 per share on revenue of $10.99 million.

Hot Medical Stocks To Buy Right Now: Syngenta AG(SYT)

Advisors’ Opinion:

  • [By Shanthi Rexaline]

    Agri-Input Companies — Seeds/ Fertilizers/Pesticides Manufacturers

    Monsanto Company (NYSE: MON): +68.82 percent since 2011. Syngenta AG (ADR) (NYSE: SYT): +56.26 percent since 2011. Mosaic Co (NYSE: MOS): -63.1 percent since 2011. Potash Corporation of Saskatchewan (USA) (NYSE: POT): -67.8 percent since 2011. CF Industries Holdings, Inc. (NYSE: CF): +5.04 percent since 2011. Agrium Inc. (USA) (NYSE: AGU): +1.10 percent since 2011.

    Agri-Finance Companies


    Syngenta AG (SYT) CEO Erik Fyrwald said Wednesday that he was “entirely confident” the company’s $43 billion takeover by China National Chemical Corp. would close in the second quarter of this year and dismissed suggestions it would be disrupted by a third party.

The 5 Best Stocks for Retirees to Buy Before 2018

Adding extra income to your nest egg can be the difference between a comfortable retirement and living the retirement of your dreams. That’s why we’ve put together a list of the five beststocks for retireesto buy today…

Now, owning stocks involves a certain level of risk. That’s especially true for retirees who don’t have decades to recover losses. But if you’re a retiree with some extra money set aside, owning stable, high-dividend-paying stocks can provide extra, valuable income in your golden years.

Money MorningChief Investment Strategist Keith Fitz-Gerald says owning dividend stocks like these can be likeearning a “second salary.”

“Dividends can work like magic when it comes to reaching your financial goals and a safe retirement,” says Fitz-Gerald.

In fact, one of theretirement stockswe’ll show you below yields more than 17% on its dividend. That means a $10,000 investment would accrue $1,700 a year from dividends alone.

And that outpaces other options for retirement income, like annuities or mutual funds…

top stocksmoneymorning.com/wp-content/blogs.dir/1/files/2017/12/top-stocks-300×220.jpg 300w, moneymorning.com/wp-content/blogs.dir/1/files/2017/12/top-stocks-178×130.jpg 178w, moneymorning.com/wp-content/blogs.dir/1/files/2017/12/top-stocks-75×55.jpg 75w” sizes=”(max-width: 480px) 100vw, 480px” title=”top stocks” />

An annuity can guarantee a steady rate of return – around 3% for a fixed annuity – but once purchased, you can’t withdraw your money without paying extra. With a stock, you can sell shares when you need to free up the money. Plus, you’ll profit if the share price rises.

Additionally, fees from annuities and mutual funds chip away at your money, countering the added income.

Managed fund fees can run over 2%. Annuities also come with complex fees. Fidelity lists 11 different fee possibilities depending on which annuity you purchase.

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Again, nothing beats a complete retirement plan when it comes to reaching your retirement goals. That’s whyFitz-Gerald has put together an action plan to help you get there, too.

Stocks for retirees moneymorning.com/wp-content/blogs.dir/1/files/2017/12/dividend-jar-75×50.jpg 75w” sizes=”(max-width: 300px) 100vw, 300px” title=”Stocks for retirees ” />But if you’re looking to add a little extra income to your retirement with stable,high-dividend stocks, we’ve got you covered.

Not only do these stocks pay high dividends – some yield above 15% – but these are well-run, profitable companies. That’s essential for income investors, because the company needs to keep generating profits to keep paying a dividend.

Fitz-Gerald says, “a company’s ability to keep paying and increasing its dividend is just as important in the long term” as high yields are.

That’s why we’ve found five stocks with high dividends and excellent business models to keep the payouts coming…

The Best Stocks for Retirees, No. 5: Ticc Capital Corp.

Ticc CapitalCorp. (Nasdaq:TICC)is a corporation chartered under a unique tax structure that allows it to send more of its profits back to investors. Business Development Corps. (BDCs) were designed to allow average investors – not the hedge fund giants on Wall Street – to fund private startups.

And that’s the structure utilized by Ticc Capital Corp. Because Ticc is a BDC, it’s required to distribute at least 90% of its income back to its investors.

That’s how Ticc pays its investors a quarterly dividend of $0.20 a share. With a share price of $6.55, the dividend yields 12.23% on your investment. That can add up to some serious income.

The average working person between ages 56 and 61 has $163,577 in savings. According to Fitz-Gerald, “TICC’s 12.23% yield would mean a $20,000 income stream a year – which amounts to $1,667/month of taxable income.”

While we don’t recommend putting your savings into one stock, the example shows just how powerful of an income generator Ticc can be for your extra money.

And Ticc is a well-run company. It has an operating cash flow of $315.16 million and a profit margin of nearly 10%. That ensures Ticc will be able to keep paying its huge dividend and can even raise it over the coming years.

The Best Stocks for Retirees, No. 4: New Residential Investment Corp.

New Residential Investment Corp.(NYSE:NRZ) is the most unique pick on our list, since it’s a real estate investment trust (REIT). NRZ manages a portfolio of real estate holdings and mortgages, which gives its investors exposure to the real estate market.

While REITs can be used to diversify a typical stock portfolio, they also bring their investors serious income.

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NRZ has over $70 billion in assets under management, and those assets bring NRZ a quarterly income of $356.79 million. And nearly all of that income gets passed on to NRZ’s investors since it’s a REIT.

“New Residential is required by the SEC to return 90% of taxable income to shareholders annually,” says Fitz-Gerald. “That means money in your pocket, if you’re one of ’em.”

NRZ pays a dividend of $0.50 a share, and with a share price of $16.95, its dividend yields 11.8% on your investment.

The Best Stocks for Retirees, No. 3: Lockheed Martin Corp.

Lockheed MartinCorp. (NYSE:LMT) is one of the best defense contractors in the world, and it’s hugely profitable.

With a profit margin of 10.37% and total revenue of $47.2 billion annually, the company is raking in a profit of nearly $5 billion a year. And in 2017, the company announced it was increasing its yearly profit projections by 5%.

You see, LMT is an exceptionally well-managed company with billions in government contracts across the world. But it’s also plugged in to the Unstoppable Trend of war, terrorism & ugliness.

The key to making huge profits is to find “must-have” companies that fall into what Fitz-Gerald calls the six “Unstoppable Trends”: medicine, technology, demographics, scarcity & allocation, energy, and war, terrorism and ugliness (also known as “defense”). The Unstoppable Trends are backed by trillions of dollars that Washington cannot derail, the Fed cannot meddle with, and Wall Street cannot hijack.

That means LMT is always going to be in demand, no matter what else is going on in the broader market. That lets LMT pay its investors a massive $2.00 dividend per share. That’s right, the company will pay you $2 a quarter just for owning its stock.

And it’s likely you’ll be growing your money by doing that, too. LMT is up 32% over the last year, jumping from $237.39 a share to $312.67 a share today. Analysts are projecting it could hit $340 a share.

That’s a nice profit opportunity for ahigh-dividend income stock.

And we’ve saved the best for last. Our last two income stocks for retirement are our top picks, including one paying a dividend that yields over 17%…

The Best Stocks for Retirees, No. 2: Arlington Asset Investment Corp.

Arlington Asset Investment Corp.(NYSE:AI) is another BDC, but this one focuses on owning government debt.

That may sound like a dull business model, but rest assured, it’s a lucrative one. AI has nearly $5 billion in its portfolio and is massively profitable.

With a profit margin of 38.8%, AI is able to funnel more than three times the profit of any stock on this list back to its investors.

That’s how it manages a dividend yield of a whopping 17.17%, the biggest dividend on our list. And the best part is AI is likely to continue growing its dividend.

Fitz-Gerald especially likes AI because of its long-term stability, which is essential for it to keep paying such a spectacular dividend.

“This stability is exactly what you’d expect from a business gathering income through U.S. government-backed mortgages,” Fitz-Gerald said. “It may not be the most exciting field, but it sure pays the bills, as you’ll see from this company’s quarterly dividend income stream.”

In fact, AI has upped its dividend 92% since 2010.

The Best Stocks for Retirees, No. 1: ABB Ltd.

ABB Ltd.(NYSE ADR:ABB) is a Swiss company specializing in electrification, but that’s just the tip of the iceberg with this company.

Fitz-Gerald says the company is actually billing itself as a “technology leader,” and that’s important for its future.

“Not many investors realize this, but more than 55% of ABB’s sales are already from software and digitally enabled devices,” according to Fitz-Gerald.

That means ABB’s future is looking bright, but its income potential is what attracts us to it here.

ABB pays a dividend of $0.76 a share. With a share price of just $25.18, investors get access to that payout for a fraction of the cost of a stock like Johnson & Johnson (NYSE:JNJ), which pays a dividend of $0.84 per $132.77 a share.

You see, Fitz-Gerald is a believer in the maxim that “price is what you pay, but value is what you get,” and ABB delivers value.

Plus it fits all three of Fitz-Gerald’s criteria for finding value in stocks, which is essential to maintaining income.

“My goal is to find a high-quality business with a proven track record, savvy management, and plenty of profit potential,” says Fitz-Gerald. And ABB stacks up with all of them.

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FollowMoney Morningon Twitter@moneymorning,Facebook, andLinkedIn.

Join the conversation. Click here to jump to comments…

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‘Dividend Aristocrat’ General Dynamics Has Big Risks in 2018

General Dynamics Corporation (NYSE:GD) is a one of The Dividend Aristocrats, a group of 51 companies in the S&P 500 Index, with 25+ consecutive years of dividend increases. Aerospace and defense company General Dynamics is the newest member of the Dividend Aristocrats, having joined the list in 2017.

Not only has the company increased its dividend for 25 consecutive years, but the stock has rewarded investors with huge share price gains. General Dynamics stock has tripled in the past five years.

General Dynamics stock has potential for 10% annual dividend growth. However, the valuation of GD could be a risk factor moving forward.

Business Overview For GD Stock

General Dynamics currently generates annual sales above $30 billion. It has a large aerospace segment which is the core of the business.

General Dynamics was incorporated in 1952, through the combination of the Electric Boat Company, Canadair, and several others.

The company has evolved over the years, to enter new businesses of the future. The biggest transformation came in the 1990’s, when General Dynamics started buying technology-oriented companies.

For example, General Dynamics acquired Defense Systems from the Lockheed Martin Corporation (NYSE:LMT), Advanced Technology Systems, and Computing Devices International. In 1999, it acquired GTE Government Systems.

All these acquisitions established the foundation of the company’s Information Systems and Technology group.

Today, General Dynamics has a diversified business model. Its most profitable segment is Aerospace, which primarily manufactures business jets, under the Gulfstream brand.

Source: 2016 Annual Report, page 2

Its products and services include aviation, combat vehicles, weapons systems, and munitions.

Other reporting segments include Combat Systems, Information Systems & Technology and Marine Systems.

The Combat Systems business manufactures combat vehicles, and related weapons systems and munitions.

The Information Systems and Technology business sells technologies to the military and for civilian, state and commercial purposes.

Lastly, the Marine Systems group builds nuclear-powered submarines and surface combatants for the U.S. Navy, and also Jones Act vessels.

Growth Prospects for General Dynamics

General Dynamics stock has produced strong earnings growth in recent years, and the trend should continue moving forward.

Total revenue declined 0.4% in 2016, due to the strong U.S. dollar, which negatively impacted the company’s international business. In addition, aerospace revenue declined 5% because of falling Gulfstream jet orders.

Fortunately, growth in other businesses helped offset these declines.

For example, revenue increased 2% in the Information Systems & Technology and Marine Systems segments.

And, General Dynamics cut costs to boost margins. Operating margin of 13.7% in 2016 was up 40 basis points from the previous year.

Overall, General Dynamics stock’s earnings-per-share increased 8.7% in 2016. The company generated a strong 18% return on invested capital. Operating earnings, ROIC, and dividends have all increased steadily in the past few years.

Source: 2016 Annual Report, page 10

General Dynamics is off to a good start in 2017. Earnings-per-share from continuing operations increased 6.8% over the first three quarters, driven by operating profit growth of 13% and 11% in combat systems and aerospace, respectively.

Moving forward, General Dynamics will benefit from growth in defense spending, both in the U.S. and the international markets.

Furthermore, President Trump has advocated for higher levels of defense spending in the U.S., which would be a tailwind for General Dynamics.

In addition, international markets are likely to continue raising defense spending as well. Geopolitical risk remains elevated across many parts of the world.

Demand for General Dynamics’ products and services remains strong, evidenced by a total project backlog of $63.9 billion last quarter, which was up 9% from the previous quarter.

Competitive Advantages & Recession Performance

General Dynamics has several competitive advantages. First, it operates in defense, which has high barriers to entry. Defense companies rely on contracts from the U.S. and foreign governments. A small competitor would have difficulty entering the defense industry and trying to take share.

In addition, General Dynamics has industry-leading brands, such as Gulfstream and Stryker. It has built these brands with significant research and development spending:

2014 research-and-development expense of $358 million 2015 research-and-development expense of $395 million 2016 research-and-development expense of $418 million

This R&D helps the company secure its position among its competitors.

General Dynamics is built to last. The company performed very well during the last recession:

2007 earnings-per-share of $5.10 2008 earnings-per-share of $6.13 (20% increase) 2009 earnings-per-share of $6.20 (1.1% increase) 2010 earnings-per-share of $6.82 (10% increase)

As you can see, the company grew earnings in each year of the recession, including two years of double-digit growth. It would not be easy to find many companies that grew earnings-per-share by 20% in 2008, but General Dynamics did it.

One major reason for the company’s excellent recession performance, is because it sees steady demand for its products and services each year. The world has many dangerous places. Global conflicts are not likely to cease any time soon, regardless of the economic climate.

And, General Dynamics’ revenue is secured by long-term contracts with its customers. This also keeps earnings intact during recessions.

Valuation & Expected Returns

General Dynamics stock has a price-to-earnings ratio of 20.2. This is significantly above its 10-year average price-to-earnings ratio of 12.5.

Source: Value Line

At its current price-to-earnings ratio, General Dynamics is trading at a roughly 62% premium to its 10-year average. As a result, if the stock were to revert to its average valuation, it would cause a significant loss.

We believe fair value for General Dynamics to be a price-to-earnings ratio of approximately 17-18. This is closer to the average valuation in the years since the Great Recession, which includes a more normal economic environment.

Using a fair price-to-earnings ratio of 17-18, and the company’s expected 2017 adjusted earnings of $9.70, yields a fair value estimate of $165 to $175.

Aside from changes in the valuation multiple, future returns will be comprised of earnings growth and dividends. In the past 10 years, the company increased earnings-per-share by approximately 7% per year. This seems to be a reasonable set of expectations for future growth.

As a result, potential returns could be as follows:

3%-4% revenue growth 5% margin expansion 2%-3% share repurchases 6% dividend yield

In this forecast, total returns would reach approximately 7%-9% per year, including dividends. However, a contracting price-to-earnings ratio would reduce total returns.

Final Thoughts on General Dynamics Stock

General Dynamics is a high-quality business, with a long history of growth. Geopolitical risk remains a constant, which gives the company a long runway of growth going forward.

General Dynamics is a shareholder-friendly company, and should continue returning significant cash to shareholders through buybacks and dividends.

At this time, General Dynamics appears overvalued. It may be sensible for investors to wait for the price-to-earnings ratio to decline into the teens, with a 2% dividend yield or higher before buying.

Please send any feedback, corrections, or questions to ben@suredividend.com.

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