Lockheed Martin Corporation (LMT) October 2023 to April 2024
Neutral to Long: The company's fundamentals and dividend history are strong, suggesting a potential long position. However, the recent underperformance (negative YTD return) and the volatility might be a concern, which introduces some caution, hence the neutral stance.
Fundamentals:
Market Cap: $110.91 billion
Operating Margin (TTM): 13.43%
EPS (Earnings Per Share): $27.3
PE Ratio: 16.13
Revenue (TTM): $67.39 billion
Quarterly Revenue Growth YoY: 8.1%
Profit Margin: 10.48%
Return on Equity (TTM): 68.31%
Recent Earnings:
Q3 2023: Estimated EPS was $6.67 (actual EPS not yet reported).
Q2 2023: Estimated EPS was $6.45, and the actual EPS was $6.63, resulting in a positive surprise of 2.79%.
Q1 2023: Estimated EPS was $6.06, and the actual EPS was $6.61, resulting in a positive surprise of 9.08%.
Q4 2022: Estimated EPS was $7.39, and the actual EPS was $7.4, resulting in a slight positive surprise of 0.14%.
Technical Indicators:
5-Year Return: 9.02%
10-Year Return: 16.31%
1-Year Return: 13.94%
YTD Return: -7.52%
Dividend Yield: 2.72%
Volatility (1Y): 21.49%
Sharpe Ratio: 0.7561
Dividends & Splits:
Last Dividend Date: December 29, 2023
Forward Annual Dividend Yield: 2.86%
Forward Annual Dividend Rate: $12.6
Last Split: 2:1 on January 4, 1999
Analysis:
Lockheed Martin has shown consistent growth in its revenue, with a YoY quarterly revenue growth of 8.1%. The company's earnings have been positive, with recent quarters showing a positive surprise in EPS compared to estimates. The company's fundamentals, such as the operating margin and profit margin, are robust. The PE ratio is at a moderate level, indicating that the stock might be reasonably priced. The company has a strong dividend history, which is a positive sign for income-focused investors.
However, the YTD return is negative, indicating some recent underperformance. The volatility is also relatively high, which might be a concern for risk-averse investors.
In conclusion, Lockheed Martin appears to be a fundamentally strong company with consistent growth and a good dividend history. However, potential investors should be cautious about the recent underperformance and consider the company's volatility before making an investment decision.
Please note that this analysis is based on historical data and does not guarantee future performance. Always conduct your own research and consult with a financial advisor before making investment decisions.
