Traders and investors are moving into the market to "buy the news" as Lockheed Martin comes off of a particularly strong earnings report. Shares are set to make a strong technical move above their 200-day moving average, this after spending the last two weeks trading just below the key trendline.
It was relatively clear that the market was "selling the rumor" ahead of the report, to their eventual chagrin, creating a post-earnings trading opportunity.
The jury had been out on where the earnings and outlook would take the stock… but then the jury came back with a loud and clear "Buy!" verdict.
Here's the play…
Technicals and Fundamentals Are Bullish for Lockheed
This morning, ahead of the open, Lockheed Martin announced earnings results that were better than expected for the latest quarter. Lockheed's numbers bested analyst expectations by 25%, their best in more than five years. The report also showed a 14% year-over-year revenue growth, the strongest in two quarters.
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.