Lockheed Martin (NYSE:LMT) is off to a strong start in 2019. The world’s largest defense contractor has seen its stock price rally about 30% so far this year, following its strong first-quarter results.
Still, plenty more gains could still lie ahead for investors. Here’s why.
1. A strong product portfolio
At the core of Lockheed Martin’s portfolio lies the F-35 Joint Strike Fighter. It is one of the Department of Defense’s most important programs, as the multi-role aircraft is designed to be the most advanced strike aircraft for the Air Force, Navy, and Marines.
The F-35 is so important to the nation’s security, in fact, that it’s unlikely the Defense Department will let the program fail. Instead, the F-35 is almost certain to remain a core part of the U.S. military’s — and many of our allies’ — air defense plans for decades to come. Thus, Lockheed Martin is likely to enjoy a level of revenue stability and visibility that few other businesses experience. more