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With two wars currently raging – Russia/Ukraine and Israel/Palestine – and a third concern – China/Taiwan – defense stocks make all the sense in the world. If nothing else, they could serve as a hedge in your portfolio against geopolitical escalation. And yet investors seem to have little interest. That’s a mistake IMO.

Lockheed Martin (LMT) reported an excellent 2Q24 this morning (Tuesday). Revenue was +9% and they increased full-year guidance across the board. At 18.5x 2024 EPS guidance with a 2.58% dividend shares are attractively priced. It’s hard to see them dropping too much in an increasingly dangerous world and the upside in the case of geopolitical escalation is significant. 12-month PT: $585.

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