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Defense stocks have been soaring since Trump’s victory and Republican sweep of the Congress. On the campaign trail, Trump had promised to boost military spending and now with Republican control of the Congress, we’ll probably see that soon as also some much-needed reforms in that area.

Lockheed Martin (LMT) is the largest defense contractor in the world.  They reported excellent earnings, beating the Zacks Consensus Estimate. Revenues also beat the Zacks Consensus Estimate and were up 2.9% from the year-ago quarter.

The management was very optimistic about the outlook for 2017 and after election that outlook has improved further.

If you look at their “Price & EPS Surprise” chart, you see they have missed only once in the past five years.

The stock is currently Zacks Rank #2 (Buy), with a VGM score of “B”. Its dividend yield exceeds 2.5% as of now.

Big Five Sporting Goods (BGFV - Free Report) is a sporting goods retailer in the western U.S., offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment.

They also reported excellent results beating on both the top and bottom lines. They seem to have benefited from liquidation of Sports Authority and Sport Chalet.

The retailer continues to return a lot of capital via dividends and buybacks. Along with the results, they announced a 20% dividend increase. This was their second dividend increase this year and a 50% increase in their dividend from the beginning of the year. Their current dividend yield is 2.5%.

The stock has a Zacks Rank of 2 (Buy) and it looks very good on style scores with “A” for Value, Growth as well as Momentum.

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