The bulls are attempting to make a stand as we close out the last few trading days of February. The price action has been impressive with the S&P 500 rallying over 5% off Thursday’s intraday low.
Even with the recent bullish movement, it isn’t too difficult to find a stock that’s hovering near its lows over the last year as most stocks have been hit hard by the recent market volatility. Whether we’re viewing growth stocks, value stocks, small-caps, large-caps or somewhere in between, a high percentage of stocks are in bear market territory.
That’s not the case with the two aerospace and defense giants we will analyze below. These companies have been bucking the trend this year and are both hitting their respective 52-week highs today. They have held up extraordinarily well through this market correction and are displaying relative strength as we head into the historically bullish month of March.
Our Zacks Style Scores are a great complementary indicator and are based on academic research which has proven that stocks with the best value, growth and momentum characteristics outperform the market. In addition to the three individual style scores, we also produce an overall ‘VGM’ score that can help identify stocks that are leading across the board. Our two defense stocks sport the highest possible VGM ranking of ‘A’ – an indication that investing in these stocks may lead to a high probability of success.
Both aerospace behemoths are components of the Zacks Aerospace and Defense industry group, which currently ranks in the top 41% of more than 250 Zacks Ranked Industries. Historical research studies have shown that approximately half of a stock’s price movement can be attributed to its industry grouping. By investing in stocks located within the top industry groups, we can provide a ‘tailwind’ to our investing success.
Lockheed Martin Corp. (LMT - Free Report)
Lockheed Martin is a global aerospace and security firm that engages in the design, research, development, integration and sustainability of advanced technology systems and services. LMT provides a variety of defense solutions such as combat and mobility aircraft, missile defense, radar, and cybersecurity systems. The company is the largest defense contractor in the world and primarily serves the U.S. government while also contracting with foreign military agencies. Lockheed Martin was founded in 1912 and is based in Bethesda, MD.
LMT benefits from a steady order flow from the Pentagon. The fourth quarter of last year was no different when the aerospace company clinched a lucrative $4.9 billion dollar deal to support operations and the sustainment of its F-35 Fighter jets. Lockheed is in a very stable position from a liquidity standpoint as the company paid out dividends worth $2.9 billion last year to shareholders – a 3.6% increase versus 2020.
LMT has produced a positive earnings surprise in each quarter for the past four years running. The defense contractor most recently reported Q4 EPS of $7.24, a +0.14% surprise over the consensus estimate. Lockheed has delivered a four-quarter trailing average EPS surprise of +63.32%. Shares have advanced nearly 14% this year while the market has been in a correction.
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The bulls are attempting to make a stand as we close out the last few trading days of February. The price action has been impressive with the S&P 500 rallying over 5% off Thursday’s intraday low.
Even with the recent bullish movement, it isn’t too difficult to find a stock that’s hovering near its lows over the last year as most stocks have been hit hard by the recent market volatility. Whether we’re viewing growth stocks, value stocks, small-caps, large-caps or somewhere in between, a high percentage of stocks are in bear market territory.
That’s not the case with the two aerospace and defense giants we will analyze below. These companies have been bucking the trend this year and are both hitting their respective 52-week highs today. They have held up extraordinarily well through this market correction and are displaying relative strength as we head into the historically bullish month of March.
Our Zacks Style Scores are a great complementary indicator and are based on academic research which has proven that stocks with the best value, growth and momentum characteristics outperform the market. In addition to the three individual style scores, we also produce an overall ‘VGM’ score that can help identify stocks that are leading across the board. Our two defense stocks sport the highest possible VGM ranking of ‘A’ – an indication that investing in these stocks may lead to a high probability of success.
Both aerospace behemoths are components of the Zacks Aerospace and Defense industry group, which currently ranks in the top 41% of more than 250 Zacks Ranked Industries. Historical research studies have shown that approximately half of a stock’s price movement can be attributed to its industry grouping. By investing in stocks located within the top industry groups, we can provide a ‘tailwind’ to our investing success.
Lockheed Martin Corp. (LMT - Free Report)
Lockheed Martin is a global aerospace and security firm that engages in the design, research, development, integration and sustainability of advanced technology systems and services. LMT provides a variety of defense solutions such as combat and mobility aircraft, missile defense, radar, and cybersecurity systems. The company is the largest defense contractor in the world and primarily serves the U.S. government while also contracting with foreign military agencies. Lockheed Martin was founded in 1912 and is based in Bethesda, MD.
LMT benefits from a steady order flow from the Pentagon. The fourth quarter of last year was no different when the aerospace company clinched a lucrative $4.9 billion dollar deal to support operations and the sustainment of its F-35 Fighter jets. Lockheed is in a very stable position from a liquidity standpoint as the company paid out dividends worth $2.9 billion last year to shareholders – a 3.6% increase versus 2020.
LMT has produced a positive earnings surprise in each quarter for the past four years running. The defense contractor most recently reported Q4 EPS of $7.24, a +0.14% surprise over the consensus estimate. Lockheed has delivered a four-quarter trailing average EPS surprise of +63.32%. Shares have advanced nearly 14% this year while the market has been in a correction.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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