Portfolio Update: Lockheed Martin and Allegheny Technologies

I picked up shares of Lockheed Martin (LMT) at $76 per share Wednesday. Lockheed has dropped from the mid 80’s after reporting a decline in profitability and amidst news that the U.S. government cut funding for the F-22 fighter jet program. I think the nation’s largest defense contractor is very attractive at this level. It’s trading at just 10 times earnings and has a solid balance sheet.

I also bought Allegheny Technologies (ATI) at $28.40. Allegheny was down 18% after reporting negative earnings for Q2 and forecasting no earnings growth for Q3. This stock could drop to $26 in the short term but I like the upside potential when metal prices rebound and the aerospace industry recovers.