2 Industrial Stocks To Buy Hand Over Fist in February
Inflation rocked the U.S. economy in 2022. Rising prices across the board led to higher costs for consumer products. But one company's cost is another's revenue, and in the cases of rising commodity, energy, and agricultural prices, plenty of sectors benefited from these trends last year.
The industrial sector is a good hunting ground for stocks that will benefit from rising inflation, specifically with railroads and defense contractors. Here is one railroad and one defense contractor with durable earnings streams to buy in February.
Lockheed Martin (NYSE: LMT) has been a mainstay of the defense industry for decades, becoming one of the largest customers for the U.S. government and its allies. It supplies missiles, helicopters, satellite systems, fighter jets, and many other products for war departments. Some of the company's revenue comes from cost-plus contracting, which gives contractors like Lockheed Martin a guaranteed return on projects. These kinds of contracts are part of the reason why the company can ride through periods when wages and input costs are rising quickly, as is happening today. And even if cost-plus contracting goes away, Lockheed is still the sole supplier for many weapons systems like the cutting-edge F-35 fighter jet. Regardless of the contract structure, Lockheed will likely be a monopoly supplier to the U.S. government for decades to come.
Source Fool.com
