Analyst Picks: 2 Defense Stocks to Buy, 1 to Hold, and 1 to Sell
"[W]e haven't necessarily found [any defense companies to buy] that we found to be compelling either from a price expectation perspective or from a fit and rationale perspective."
-- General Dynamics CFO Jason Aiken
For months I've been saying that defense stocks in general have gotten too expensive. General Dynamics (NYSE: GD) seems to agree with me, and now Wall Street does, too -- at least in part. Yesterday, investment megabanker Morgan Stanley initiated coverage of the defense sector, assigning new ratings to four of the nation's biggest defense contractors.
The big surprise? Last month, I argued that at today's high valuations, the only two defense stocks I'd even consider putting new money into today are Raytheon (NYSE: RTN) and Lockheed Martin (NYSE: LMT). And would you care to guess which companies are Morgan Stanley's two top picks in the defense industry?
Source: Fool.com
Lockheed Martin Corp. Stock
With 9 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
On the other hand, the target price of 493 € is below the current price of 500.7 € for Lockheed Martin Corp., so the potential is actually -1.54%.
