Why Pete Najarian Bought Lockheed Martin's Stock This Week

Pete Najarian shared on CNBC's "Fast Money: Halftime Report" Friday that he recently bought Lockheed Martin Corporation LMT stock.

The fundamental story behind the stock led him to buy it, Najarian said. 

Lockheed Martin's earnings are growing about 20% annually over the last five years, he said, adding that the company manages its cash intelligently because it is used for M&A, buying down debt and buying back shares, Najarian told CNBC. 

The stock has plenty of upside going forward because it's cheaply valued at its current level around 13 to 14 times earnings, he said. 

Recent Press Releases: On April 20, Lockheed Martin reported first-quarter earnings of $6.56 per share and revenue of $16.3 billion.

The company announced yesterday that CFO Ken Possenriede will present at the Goldman Sachs Industrials & Materials Conference, May 13.

Related Link: Worldwide Tilt Rotor Aircraft Industry to 2031 - Heavy Investment by Governments in Urban Air Mobility Presents Opportunities - ResearchAndMarkets.com

Price Action: Lockheed Martin traded as high as $417.62 and as low as $319.81 over a 52-week period. At last check Friday afternoon, the stock was up 0.91% at $390.87.

(Photo courtesy of Lockheed Martin)