Being the Pentagon’s prime contractor, Lockheed Martin offers a diverse portfolio of global aerospace, defense, security and advanced technologies. Its leveraged presence in the Army, Air Force, Navy and IT programs guarantees a steady inflow of follow-on orders, not only from the U.S. government but also from many foreign allies of the nation.
Investors receive a 2.67% dividend. Citigroup’s target price is $579, while Lockheed Martin stock has a $506.35 consensus target. The shares closed on Tuesday at $458.63.
L3 Harris Technologies
This off-the-radar giant may be the best total return candidate of all these top companies. L3 Harris Technologies Inc. (NYSE: LHX) is an aerospace and defense technology company that provides mission-critical solutions for government and commercial customers worldwide.
The company’s Integrated Mission Systems segment provides multi-mission intelligence, surveillance and reconnaissance (ISR) systems, and communication systems, as well as fleet management support, sensor development, modification and periodic depot maintenance services for ISR and airborne missions.
This segment also manufactures and integrates mission systems for maritime platforms, such as signals intelligence and multi-intelligence platforms; unmanned surface and undersea autonomous solutions; and power and platform control systems and other electronic and electrical products and systems. It also offers advanced electro-optical and infrared solutions.
The Space and Airborne Systems segment offers space payloads, sensors and full-mission solutions; classified intelligence and cyber defense solutions; mission avionics; and electronic warfare systems.
The Communication Systems segment provides broadband communications; tactical radios, software-defined radios for key Defense Department network modernization programs and satellite communication terminals, and battlefield management networks for U.S. and international defense customers; integrated vision solutions, including helmet-mounted integrated night vision goggles; heads-up displays along with Clip-on Weapon Sights, and weapon-mounted aiming lasers and range finders; and public safety radios and system applications and equipment.
L3 Harris Technologies stock comes with a 2.50% dividend. Morgan Stanley’s $264 target price compares with a consensus target of $236.35 and Tuesday’s close at $184.52.
Northrop Grumman
This was ranked as one of the top five defense contractors by sales last year, and it is on the BofA Securities US 1 list of top stock picks. Northrop Grumman Corp. (NYSE: NOC) provides innovative systems, products and solutions in unmanned systems, cyber, C4ISR and logistics and modernization to government and commercial customers worldwide.
The Aerospace Systems segment designs, develops, integrates and produces crewed aircraft, unmanned systems, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems.
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