Global Pairs Broker Says If You Are Worried About The Stock Market, Look For Companies With Strong Fundamentals

London, UK, 5th Feb 2022, ZEXPRWIRE, Have you been feeling down in the dumps because of what’s going on with stocks lately? I know says the Global Pairs broker, it feels like every time we turn around something big happens that send prices tumbling. Well don’t worry! It might be rough right now but there is still opportunity out here for investors who know how to find them – companies that have strong fundamentals and will likely do well even if our economy does decline more drastically than expected over time.

One such company is Lockheed Martin (NYSE: LMT).

First, let’s talk about what has been happening to the economy. As many investors know, the U.S. economy is not in great shape right now. The housing market was terrible for years and just recently started recovering, but there are still problems that have yet to be addressed within that market specifically as well as the broader housing industry. Unemployment climbed higher than expected last month which isn’t too encouraging for workers or businesses looking to expand their workforce further down the road, especially since it looks like slow GDP growth will continue over the next few months at least. These are important areas where believe LMT will operate quite well.

LMT is in the business of selling military equipment. That may sound risky, but with the U.S. federal government continuing to fund more defense projects even when other areas are being left short-changed that’s unlikely to happen right now or in the next few years at least. Plus, there are still plenty of opportunities with domestic agencies within the country too, which will offset some of this risk by itself since LMT has a strong track record when it comes to winning contracts for both kinds of deals. As long as they have the latest technology available, I expect them to keep coming out on top when they can. At last check shares were trading around $115 per share and yielding near 2%, which isn’t anything amazing but is still pretty good in this current market environment.

LMT is very diversified when it comes to the kind of contracts they are awarded with, which helps reduce risk even further. A majority of their revenue comes from direct government military sales (58% last quarter), followed by commercial and then international defense projects. They also have an extensive track record for winning new contracts, so far having won $68 billion worth of them over the last year. That’s not even including some new awards announced recently either like a potential 10-year contract with Australia that could be worth $7.5 billion over time. When you look at that along with all their other major projects on the go right now, there is very little reason to think that LMT will not continue building off this momentum and increasing their bottom line as a result.

LMT has several other weapons that could also be further added to place even more protections on the company and allow it to compete with its peers and rivals too. For example, they have been working on a missile defense system known as ADAM (AEGIS Deployed ABM Modification) which is already in full swing now. Between testing for this alone there should be plenty of opportunities to expand sales which will provide LMT with an edge over competitors such as Boeing (NYSE: BA) and Northrup Grumman (NYSE: NOC). Plus, they are still producing F-16’s despite having long passed the production date for them – but that doesn’t mean that there is no life left in the jets. They can still sell these planes to other countries for example and make a tidy profit doing so.

All-in-all I like LMT’s prospects here, particularly with their yield coming in at 2%. With the economy looking worse every day and defense spending continuing to increase over time, it will be hard for companies such as this one not to continue making money if they play their cards right. That is always easier said than done of course but LMT seems confident about their future outlook, and they should be given all the facts. If you’re looking for a safe dividend stock then Lockheed Martin could very easily fit the bill, but please do your own additional research before investing any further than that.

One of the best investments out there right now has to be dividend paying stocks. With interest rates still low people would rather wait around to get paid a little bit extra over time instead of just letting their money sit in a savings account that’s barely ticking over at present time.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.