"The core of my first budget blueprint is the rebuilding of our nation's military without adding to our federal deficit," President Donald Trump wrote in a letter attached to his budget issued in May.
While the President’s budget proposal increased fiscal 2018 defense spending a modest 3.3% above spending proposed by President Obama, it’s a move that’s symbolically and directionally important for the $80 billion defense manufacturing behemoth Lockheed Martin (LMT).
“If you believe, generally, that Defense spending is going up, then Lockheed is going to be a part of that,” says Hedgeye Potomac Defense Policy analyst Emo Gardner in the video above from The Macro Show.
Consider the numbers: 80% of Lockheed’s revenue is derived from the U.S. Department of Defense.
“Lockheed does well in the President’s budget that just came out,” Gardner says.
In the video above, Gardner breaks down the short to long-term bull case for Lockheed, the world’s largest defense contractor.
