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Protect your portfolio with these defensive stocks

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Mike Larson recommends looking for defensive stocks in these market conditions. It makes a lot of sense to him right now as he shares his strategy: Holding small, starting positions at Lockheed Martin. Lockheed is the largest US company in the sector with a market capitalization of $ 108 billion and 2018 sales of $ 53.8 billion.

In addition to developing weapons and defensive combat systems, Lockheed also makes training systems, especially for Black Hawk helicopters and C-130J Super Hercules aircraft. Larson says, "Look, I don't need to tell you that 1 - the world remains a very dangerous place, 2 - tensions are mounting in the Middle East, and 3 - President Trump is pouring more money into the defense sector than he has taken." it is clear that tensions between China and Russia are also rising.The administration knows that strengthening our defenses and those of our allies further exacerbates the likelihood of conflict.And let's be honest: Increasing the cost of the defense sector is also creating jobs and developing the economies of the individual states, k This increases the congressmen's influence on the Pentagon. "

The company's sales are up 8% with all four operating segments reporting growth. The company also raised its expectations for 2019 earnings, profits and cash flows.

TechPrecision is Faris Sleem's choice. The company manufactures and markets wholesale metal and machine components and systems, mainly in the United States. The company manufactures custom components for ships, submarines, aircraft and nuclear power plants. The strong foundation for growth of the company comes from good growth prospects and a healthy balance. The risk of liquidation is 3.8%, which is minimal, which reduces the immediate negative financial consequences if the company loses a solid client. It only works with three clients, which implies risk due to high customer concentration. The outlook for the company is mostly shaped by how much the US spends on its naval forces. Most of all, TechPrecision would win a lot along the Columbia submarine and three Virginia submarine projects.

TechPrecision has low operating costs and constantly generates profits. Cash flows are more than good, leading to a good balance. The company is expected to earn $ 100 million over the next 24 months, with prospects for improvement.

Dr. Joe Duarte comments:

"The recent volatility has created some good opportunities to invest in companies that are in the right place at the right time. Companies like software developer Leidos Holdings. Leidos is a company that is doomed to succeed for its clients in the long run: local, local, local government agencies, the US government, and most of all the US Department of Defense. exploring the background of geopolitical events will be key to Leidos' growth. "

Mark Skousen: "Market volatility is difficult to predict due to another crisis in the Middle East, but one thing is for sure - the defense and aerospace sectors continue to flourish. One company that falls into my radar is BWX Technologies. It produces nuclear components of US and Canadian military.While uranium sells for a modest $ 25 a pound, the business is doing very well for the company.The company has a profit of $ 1.9 billion for 2018 and orders of $ 4.5 billion. % per share, carrying nearly 1.2% profit on an annual basis, with the dividend expected to grow. It is imperative that we add this company to our portfolio. "

Richard Moroney offers Northrop Gruman. It is the third largest manufacturer in the world of military equipment and equipment. 90% of the revenue comes from the defense sector, but Northrop produces aircraft and ammunition. The company's sales are up 18% year over year. In 2018, the company purchased Orbital ATK, which produces precision weapons, ammunition, rockets and rocket propulsion systems. The Aerospace division produces aircraft, lasers and microelectronics. The Mission Systems business segment develops intelligence, surveillance, electronic combat systems, space technology, missile defense and cyber security systems. Orbital ATK has become the Innovation Systems segment. The Technology Services sector focuses on computer and logistics systems.

Moroney is confident in the company's growth due to pending orders of $ 63 billion. Northrop also invests its own shares, reducing the number of shares by 3% in the last year and by 21% in the last five years. The stock dividend is 1.5%.


 Trader Martin Nikolov

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