Lockheed, Xcel May Gain From Stimulus

To read a recent item on Lockheed by Jim Cramer, click here.

President Barack Obama is touting the $787 billion economic stimulus bill as a way to get America working again largely through "shovel-ready" projects. But don't overlook defense company Lockheed Martin(LMT Quote) and Xcel Energy(XEL Quote), Colorado's largest utility, as "green" beneficiaries of the plan.

Lockheed, in partnership with Starwood Energy Group, broke ground two months ago on a New Jersey facility to test forms of solar technology with the goal of producing advanced utility-scale technology, which falls in line with the stimulus plan's alternative-energy targets.

The stimulus bill dedicates about $20 billion to the development and construction of green technology and infrastructure, such as "smart"-grid technology and ecologically friendly power plants. While it is unclear whether the money will come in the form of tax credits or direct government projects, Lockheed would gain from either circumstance.

The bill will include a $400 million allotment to create the Advanced Research Project Agency-Energy (ARPA-E), which will collaborate with industry to research energy sources and efficiency. Where would it be better to team with industry than at Lockheed's new state-of-the-art solar facility?

With the lack of "shovel-ready" projects a major worry of the bill's detractors, Lockheed's facility, which is scheduled to be completed this spring, could be a quick and effective way to get boots on the ground with a corporation that is no stranger to government projects.

Lockheed is rated "buy" at TheStreet.com Ratings. The company's stock outperformed the S&P 500 by 18.4% last year and is paying a dividend that is yielding 2.8%. With a return on equity of 50.8% and a cash balance just shy of $2.5 billion, Lockheed presents a solid image of a well-run corporation that would be attractive even without the windfall that may come from the stimulus package.