Summary
Lockheed Martin's financial results, as well as product profile suggest it may be both a growth stock, as well as a defensive stock, which makes it compelling.
In recognition of the fact that its business is wholly dependent on government spending domestically and abroad, we have the recognize the risks associated with abrupt policy changes.
Despite talk of cold wars, international situation may not be favorable to Lockheed, because confrontations are increasingly economic in nature, with arms mostly employed in proxy wars.
Looking back to the past few economic downturns, there is no evidence that military spending tends to fall in a global recession. This fact may seemingly make Lockheed Martin (LMT) an ideal defensive stock to own in the event that a global economic downturn may be upon us. There may be a number of important factors however which might make this stock a risky bet for those looking to shift into less volatile investments in preparation for a new global economic downturn.
I already covered Kraft Heinz (KHC), as well as Procter & Gamble (PG), as I am looking to gradually shift my own portfolio out of more volatile positions, and into stocks which could help preserve the overall value of the stocks I hold, while paying a decent dividend, as I wait for the better times to return. Thus far, both companies seem to be a better, less risky bet compared with Lockheed, even though it may not be so obvious at first sight.
