Stocks sank in early trading, adding to last week’s losses, as investors anticipated results from the Federal Reserve’s two-day policy meeting, which will begin Tuesday. The central bank is widely expected to raise its benchmark rate by another 75 basis points. Concerns are growing on Wall Street that the Fed’s aggressiveness in its fight against inflation will push the economy into a recession.
Our featured stock of the day is a reasonably priced, recession-resistant stock offering a reliable payout.
It should be no surprise that Lockheed Martin (LMT) has outperformed the market this year. There are obvious geopolitical implications with the war in Ukraine. When Russia decided to invade its neighbor, the U.S. and European forces rushed in to help Ukraine. It may be some time before LMT stock pops again, as it did at the onset of Russia’s invasion of Ukraine. However, its order books are likely to improve due to rising defense budgets in the U.S. and abroad. Along with Lockheed providing support to Ukrainian resistance fighters, the looming uncertainties in Russia could lead to massive economic problems and gaps in power in the former Soviet Union-controlled areas.
Given the recession-proof nature of defense contracting, Lockheed Martin should continue reporting positive results and rewarding shareholders through its quarterly 2.7% forward yield. In other words, LMT will likely stand firm even if the market dives again. The company runs a P/E ratio of 24 times, below the sector median of 28.3 times. As well, LMT features excellent longer-term growth and profitability metrics.
Given the unprecedented situation with major world powers Russia and China, Washington is taking steps to strengthen the technical capabilities of its military and its allies while also seeking to protect the U.S. from cyber threats.
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The #1 stock for 2023
The #1 Stock for 2023
According to former Goldman Sachs executive, Nomi Prins…
Americans who are hoping for a ‘return to normal’ are going to be shocked when they see what happens next in America.
She says, “If you’re betting your job, savings, or retirement accounts on a return to ‘normal’ you’re about to be left behind by a brand-new crisis few see coming.”
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Legacy Research:
A Return to Normal? PhD Economist: “Don’t Bet on It”
According to former Goldman Sachs executive, Nomi Prins…
Americans who are hoping for a ‘return to normal’ are going to be shocked when they see what happens next in America.
She says, “If you’re betting your job, savings, or retirement accounts on a return to ‘normal’ you’re about to be left behind by a brand-new crisis few see coming.”
Go here now to see America’s next crisis