This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lockheed Martin, Utilities to Benefit From D.C. Shenanigans

By John Licata of Blue Phoenix

LMT Chart LMT data by YCharts

NEW YORK ( TheStreet) -- While over for now, the impact of the government shutdown can't be overlooked. In the aftermath, some areas I'm already looking at to outperform the overall stock market in the coming year include cybersecurity and utilities. Names such as Lockheed Martin (LMT - Get Report) and American Electric Power (AEP - Get Report) should be on your radar.

Many analysts have their own thoughts on the recent government shutdown and the ramifications on decision-making, permitting and mortgage approvals. To me, the recent "political plague" that lasted 16 days was a unique Category 5 hurricane (like Andrew in 1992) that shocked our economic system at its very core. More on that later.

The real damage from this shutdown has yet to be calculated and that could make trying to gauge the domestic employment picture as difficult as walking in the forest at night with a broken compass. This means the government stimulus is not ending anytime soon. But caveat emptor my friends. It's my belief that the Fed staying the course on monthly bond purchases may already be reflected in the stock market, suggesting 2014 will be a true stock pickers' market.
[Read: <a target="blank" data-add-tracking="true" href="http://www.thestreet.com/story/12078803/1/energy-gush-continues-in-tesoro.html"><em>Energy Gush Continues in Tesoro</em></a>]

In the cybersecurity sector, I'm high on Lockheed Martin, which gets roughly 20% of total sales from cyber-related activities. Infrastructure resiliency is going to be a big theme in 2014 for energy companies in my view so Lockheed should be poised for further growth in the cybersecurity space.

Lockheed, a company that does often look to the private sector for partnerships may also benefit from some timely acquisitions if smaller players stumble thanks to new higher borrowing requirements from banks expected next year.

As for utilities, I'm also expecting the sector to gain investor focus from those seeking higher, more stable dividends, especially if the timing of the Fed tapering bond buying becomes less apparent thanks to the repercussions from the government shutdown. Also, I believe utilities are locked and loaded at looking to boost energy efficiency and focus more on the customer experience post Sandy.

Specific names I believe are making strong efforts to embrace modern technologies and become the new standards for utility progress include American Electric Power, a utility led by Nick Akins, a CEO who is adamant about fighting energy cyberterrorism and creating a modern infrastructure system.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LMT $187.85 0.29%
NRG $22.69 0.40%
PEG $40.09 0.38%
AEP $54.12 -0.20%
TSLA $280.29 0.10%

Markets

DOW 17,684.95 -45.16 -0.25%
S&P 500 2,069.91 -6.87 -0.33%
NASDAQ 4,991.8880 -17.3260 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs