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LOCKHEED MARTIN

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1LMT trade ideas

Lockheed profit target 25%I picked up some Lockheed Martin today, because both value and sentiment on the stock are looking too good to resist. Value I estimate Lockheed's forward P/E at about 12.5, which is really cheap for a megacap. Forward P/S is 1.5, and forward dividend yield is over 3%. I estimate Lockheed's PEG ratio at about 2, with the annual earnings growth rate sitting near 4%, the sales and dividend growth rates closer to 2.5%, and the free cash flow growth rate near 5%. These are pretty great numbers. Lockheed has about 23% upside to its median price multiple of the last 4 years. Its main competitor, Boeing, has been hemorrhaging money like a catastrophic head wound hemorrhages blood. Meanwhile, Lockheed's been enjoying tailwinds from recovery of TSA throughput numbers, proposed acquisition of Aerojet Rocketdyne, and announcement of a large UK military budget this year. Sentiment Analysts give Lockheed an average rating of 7.8/10, a solid "Buy." This rating has recently improved a few points. S&P Global gives Lockheed's fundamentals an average score of 77.25/100. Its ESG score is about average for its industry. Open interest from options traders is in very bullish territory, with a 30-day put/call ratio of 0.5. TradingView's technicals-o-meter is flashing "buy." The average analyst price target for Lockheed is more than 15% above the current price. Trading plan I sketched out a tentative view on how Lockheed might move from here. We're sitting right at a resistance and hopefully about to break out. If we get through resistance here, I'm looking for a fairly decisive move to about $394.50. From there, I'm thinking we dither for a while. A lot will depend on conditions in the larger economy, but with vaccinations, stimulus checks, and geopolitical tensions, I suspect Lockheed will eventually break out toward its all-time high. If it hits my second target, the profit from the trade will be about 25%. I'm hoping it gets there by the end of 2021.
NYSE:LMTLong
by ChristopherCarrollSmith
20
LMT for the Long-Term -- Time to Fly AgainTime and time again LMT has been a stellar stock. Now, let's start with why they may be down over the last few months: - Plane sales are declining due to COVID -- great, they're about to bounce back, look at BA for comparison - Democrats in office - okay, but have they ever actually decreased military spending drastically? I think LMT will be just fine under a Biden admin Long Term Potential: - Jets: F-35 program is great! New F-16 maintenance contract for 64B, amazing! - Space: Even without the AJRD acquisition (which could still happen), LMT has >20% revenue related to space Fundamentals: - PE of 13.91 - EV/EBITDA of 11.18 - Market Cap of ~94B over an annual revenue of 65.4B (1.43x) -- Revenue grew >9% despite COVID (2020/2019) whereas the stock fell from ~410 to ~360 in 2020 alone (~12%)... it's now down from ~440 COVID high to ~340 now (~23%) - 3.10% yield - 1.39 quick ratio - Earnings in late January missed (barely) and we went down to ~320, but I think we're ready to bounce and to get out of here. We're at ~340 now... plenty of room to set a new lower high and to change momentum to the bulls Technical: - Who cares?! We've been going down... a lot... but we've gone down so much that fundamentals are back in play! - We're seeing some downward pressure / resistance, but I read that we are now consolidating on Long-Term support - Weekly RSI <40; Monthly RSI <50 - Weekly MACD is lower than the COVID low Conclusion: If LMT goes below 300, call me wrong, but based on both fundamentals and technical, this seems like an amazing opportunity to buy for the long-term. Let's aim for ~440 or ~420 (pre or post COVID highs respectively) and then even higher from there!
NYSE:LMTLong
by HandsomeSloth