Radware Ltd. (RDWR), Fortinet Inc (FTNT): It’s Time To Get Serious About The Cyber Threat

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Despite constant pressure to reduce the size of the military, the company’s top line has grown steadily over the past decade. While the bottom line has been less consistent, Lockheed Martin Corporation (NYSE:LMT) has earned more than $7 a share for six consecutive years. In 2012, earnings came in at over $8 a share. It’s no wonder the stock has been heading higher of late.

With an around 3.7% yield and a price to earnings ratio about 33% above its five year average, Lockheed Martin Corporation (NYSE:LMT) is hardly cheap at current levels. Still, the PE is reasonable at about 14 since the shares had been hampered for several years by budget cut concerns. At the end of the day, there could still be more upside potential for those focusing on growth and income.

Positioning for the Future

Cyber attacks are getting bigger, more damaging, and increasingly complex. That’s going to make fighting these crimes a growing business opportunity for years to come. Cisco is interested enough in the space to bulk up with the acquisition of Sourcefire, Inc. (NASDAQ:FIRE), making the company a good option for growth and income investors as it works to return to growth mode. Lockheed Martin Corporation (NYSE:LMT) is another growth and income option with military grade technology to offer, though it isn’t as cheaply priced. Fortinet Inc (NASDAQ:FTNT) and Radware Ltd. (NASDAQ:RDWR), meanwhile, could find themselves takeover bait as more big fish try to get bigger.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems (NASDAQ:CSCO) and Sourcefire. The Motley Fool owns shares of Lockheed Martin.

The article It’s Time To Get Serious About The Cyber Threat originally appeared on Fool.com.

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