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Learn more about whether Lockheed Martin Corp is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (LMT) grades on certain investment factors and determine whether it meets your investment needs.
Latest Lockheed Martin Corp Stock News
As of April 10, 2024, Lockheed Martin Corp had a $107.6 billion market capitalization, putting it in the 98th percentile of companies in the Aerospace & Defense industry.
Currently, Lockheed Martin Corp’s price-earnings ratio is 16.4. Lockheed Martin Corp’s trailing 12-month revenue is $67.6 billion with a 10.2% profit margin. Year-over-year quarterly sales growth most recently was -0.6%. Analysts expect adjusted earnings to reach $26.040 per share for the current fiscal year. Lockheed Martin Corp currently has a 2.8% dividend yield.
Our fundamental outlook for the Aerospace & Defense (A&D) industry over the next 12 months is neutral. There is expectation for healthy growth in U.S. defense spending to drive strong earnings for defense businesses that make up roughly 65% of sub-industry revenue. Much of this boost will likely be offset by a continued downturn in commercial aerospace, though, with another one to two years still needed for commercial aircraft demand to recover to pre-pandemic levels. In April 2021, President Biden requested a 2% defense budget increase over the record FY 21 budget set under former President Trump. Then in July, the Democrat-controlled Senate Armed Services Committee voted overwhelmingly (23-3) to increase the FY 22 defense budget an even greater amount (+5%) than Biden. This reflects strong bipartisan support for Pentagon initiatives to maintain sea, air, and space superiority. After defense, an estimated 35% of A&D revenues come from commercial aerospace, where slack demand will likely persist through 2022. The pandemic has devastated the subindustry’s airline customers, with U.S. passenger volumes still 20% below prepandemic levels as of mid-August 2021.
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Grading Lockheed Martin Corp Stock
Before you choose to buy, sell or hold Lockheed Martin Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (LMT) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Lockheed Martin Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!
Lockheed Martin Corp Stock Value Grade
Value Grade:
Metric | Rank | LMT | Sector Median |
Price/Sales | 49 | 1.64 | 1.40 |
Price/Earnings | 45 | 16.4 | 23.2 |
EV/EBITDA | 60 | 12.7 | 11.8 |
Shareholder Yield | 11 | 7.5% | 0.0% |
Price/Book Value | 96 | 16.17 | 2.36 |
Price/Free Cash Flow | 74 | 35.5 | 22.0 |
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.
Lockheed Martin Corp has a Value Score of 37, which is Expensive.
Latest Lockheed Martin Corp Stock News
As of April 10, 2024, Lockheed Martin Corp had a $107.6 billion market capitalization, putting it in the 98th percentile of companies in the Aerospace & Defense industry.
Currently, Lockheed Martin Corp’s price-earnings ratio is 16.4. Lockheed Martin Corp’s trailing 12-month revenue is $67.6 billion with a 10.2% profit margin. Year-over-year quarterly sales growth most recently was -0.6%. Analysts expect adjusted earnings to reach $26.040 per share for the current fiscal year. Lockheed Martin Corp currently has a 2.8% dividend yield.
Our fundamental outlook for the Aerospace & Defense (A&D) industry over the next 12 months is neutral. There is expectation for healthy growth in U.S. defense spending to drive strong earnings for defense businesses that make up roughly 65% of sub-industry revenue. Much of this boost will likely be offset by a continued downturn in commercial aerospace, though, with another one to two years still needed for commercial aircraft demand to recover to pre-pandemic levels. In April 2021, President Biden requested a 2% defense budget increase over the record FY 21 budget set under former President Trump. Then in July, the Democrat-controlled Senate Armed Services Committee voted overwhelmingly (23-3) to increase the FY 22 defense budget an even greater amount (+5%) than Biden. This reflects strong bipartisan support for Pentagon initiatives to maintain sea, air, and space superiority. After defense, an estimated 35% of A&D revenues come from commercial aerospace, where slack demand will likely persist through 2022. The pandemic has devastated the subindustry’s airline customers, with U.S. passenger volumes still 20% below prepandemic levels as of mid-August 2021.
Sign Up to Receive a Free Special Report That Shows How A+ Investor Grades Can Help You Make Investment Decisions
Grading Lockheed Martin Corp Stock
Before you choose to buy, sell or hold Lockheed Martin Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (LMT) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Lockheed Martin Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!
Lockheed Martin Corp Stock Value Grade
Value Grade:
Metric | Rank | LMT | Sector Median |
Price/Sales | 49 | 1.64 | 1.40 |
Price/Earnings | 45 | 16.4 | 23.2 |
EV/EBITDA | 60 | 12.7 | 11.8 |
Shareholder Yield | 11 | 7.5% | 0.0% |
Price/Book Value | 96 | 16.17 | 2.36 |
Price/Free Cash Flow | 74 | 35.5 | 22.0 |
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. To decide if Lockheed Martin Corp stock is a buy or sell, you’ll want to evaluate its fair market price or intrinsic value.
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81-100 are considered deep value, those with a score between 61-80 are value and so on.
Lockheed Martin Corp has a Value Score of 37, which is Expensive.
Lockheed Martin Corp Stock Growth Grade
Growth Grade:
Metric | Metric Score | LMT | Sector Median |
Sales Growth 5yr Ann'l | 59 | 4.7% | 6.8% |
Sales Increases YoY Last 5 yrs | 66 | 4 of 5 | 3 of 5 |
Cash from Operations Ann'l Positive Last 5 yrs | 62 | 5 of 5 | 4 of 5 |
The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.
In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components‐consistency of annual sales growth, five‐year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.
The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.
Lockheed Martin Corp has a Growth Score of 76, which is Strong.
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Lockheed Martin Corp Stock Momentum Grade
Momentum Grade:
Metric | Score | LMT | Sector Median |
Relative Price Strength (Q1) | 51 | (8.1%) | (4.9%) |
Relative Price Strength (Q2) | 49 | (4.6%) | (4.6%) |
Relative Price Strength (Q3) | 59 | (3.3%) | (4.0%) |
Relative Price Strength (Q4) | 36 | (13.1%) | (3.0%) |
Relative Price Strength (weighted 4 qtr) | 42 | (7.4%) | (2.5%) |
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.
Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.
Lockheed Martin Corp has a Momentum Score of 42, which is Average.
Other Lockheed Martin Corp Stock Grades
In addition to Value, Growth and Momentum, A+ Investor also provides grades for Estimate Revisions and Quality.
Invest with Confidence with A+ Investor
AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.
The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.
AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F—Score.
These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Lockheed Martin Corp’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.
Should I Buy Lockheed Martin Corp Stock?
Overall, Lockheed Martin Corp stock has a Value Grade of D, Growth Grade of B, Momentum Grade of C .
Whether or not you should buy Lockheed Martin Corp stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.
Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Lockheed Martin Corp stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.
Lockheed Martin Corp (LMT) Competitors
Companies similar to Lockheed Martin Corp in the Aerospace & Defense industry.
Company name | Ticker | Market Cap |
Northrop Grumman Corp | NOC | $68.56Bil |
TransDigm Group Inc | TDG | $67.23Bil |
Boeing Co | BA | $104.74Bil |
General Dynamics Corp | GD | $78.47Bil |
Rtx Corp | RTX | $132.56Bil |
Lockheed Martin Corp Stock: Bottom Line
You can use the information about how Lockheed Martin Corp is graded to determine if you should invest in this stock. However, you should decide whether Lockheed Martin Corp’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
So, if you’re still on the fence about whether Lockheed Martin Corp is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.
A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.