Lockheed Martin (LMT)

Lockheed Martin is the world's largest defense contractor with enough capacity for the most lucrative government contracts. Lockheed Martin is the leading aerospace company in the US and has had good earnings growth, but its PE ratio is lower than average for its industry.

Furthermore, the F-22 is claimed by many to be the world’s most effective fighter aircraft. Lockheed recently reported a big success at the recent Joint Expeditionary Force Experiment 2008 (JEFX 08).

"Lockheed Martin was excited about the Air Force's decision to demonstrate the value of sharing F-22 ISR data with other fighters and back to the Combined Air Operations Center," said Larry Lawson, Lockheed Martin Aeronautics Company executive vice president and F-22 general program manager. "This is the first time in history that F-22 sensor data was down-linked to the Combined Air Operations Center [CAOC] using a tactical network." This should lead to increased F-22 business going forward.

Recent increases in global instability will continue to fuel defense spending and thus, Lockheed Martin's growth.

Current export opportunities for products such as the F-16 fighter jet and anticipated export opportunities for the Joint Strike Fighter will provide significant revenue.