The stock market rallied on Wednesday as the Federal Reserve kept interest rates unchanged. Investors now think that the central bank may be done hiking rates for the year.
Overall, S&P 500 surged 1.1% to 4,238, while NASDAQ jumped 1.6% to 13,061.
Tweet of the Day
Check Out These Blue Chip Stocks on a Dip
— SchoolofHardStocks (@SchoolHardStock) November 1, 2023
Chart of the Day
Here is the ten-year chart of Lockheed Martin (LMT) as of October 18, 2023, when the stock was at $446.
Lockheed Martin is one of the largest defense contractors in the world. It now operates four business segments, namely: (1) Aeronautics; (2) Missiles and Fire Control; (3) Rotary and Mission Systems; and (4) Space.
Lockheed Martin stock jumped last quarter as the Israel-Hamas War drove demand for defense stocks. Stocks for defense contractors like RTX, General Dynamics, and Northrop Grumman also experienced gains when the war broke out this October.
The company has been on a downtrend prior to the war but gained a 9% one-day increase to $436 at the onset of the war. The stock proceeded to climb higher, to $446 when the chart was done. Still, the stock still isn’t expensive right yet as the P/E is only 16. However, investors have to accept the fast this stock is a slow grower. Last quarter, profit growth was flat year-over-year while revenue grew just 2%.
LMT is part of the Conservative Growth Portfolio.
