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Reasons Why Lockheed (LMT) Should be in Your Portfolio Now
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Lockheed Martin’s (LMT - Free Report) wide market reach, consistent orders from the U.S. government and international customers, as well as its F-35 program, contribute to its strong performance.
The Zacks Consensus Estimate for second-quarter 2023 earnings per share and revenues is pegged at $6.43 and $15.86 billion, respectively, suggesting an increase of 223.1% and 2.7%, respectively, from the year-ago reported figures.
Surprise History, Dividend Yield and Earnings Growth
Lockheed’s trailing four-quarter earnings surprise is 7.5%, on average.
Its dividend yield is currently pegged at 2.61%, higher than the Zacks S&P 500 Composite’s average of 1.66%.
The company’s long-term (three- to five-year) earnings growth is projected at 6.2%.
Solid Orders and Strong Backlog
Lockheed Martin was successful in clinching several notable deals in the first quarter of 2023, including a $1.1 billion contract to integrate the Conventional Prompt Strike weapon system into ZUMWALT-class guided missile destroyers.
The company also won a $1.95 billion deal for the foreign military sale of 40 UH-60Ms for the Australian Army. Further, Lockheed inked a $179 million contract to support the F-35 Jet Program.
Lockheed’s total backlog came in at a solid $145.09 billion as of Mar 26, 2023. Our model projects LMT’s backlog to increase further in the 2023-2025 period, courtesy of consistent order wins from the United States government and other international customers.
International Foray
Lockheed Martin’s products are also well-acclaimed in the international market. In the first quarter, 26% of the total net sales were from international customers.
The company has also been witnessing strong interest from its international customers in Patriot Advanced Capability-3 (PAC-3) missiles and the Terminal High Altitude Area Defense (THAAD) system, with 14 nations choosing PAC-3 Cost Reduction Initiative (CRI) and PAC-3 Missile Segment Enhancement (MSE) to enhance their missile defense capabilities.
Also, the company continues to witness international interest in the Aegis Ballistic Missile Defense System (Aegis) from international customers, such as Japan, Spain, the Republic of Korea and Australia.
Return on Equity (ROE)
ROE is a measure of a company’s financial performance and shows how it is utilizing its funds. Lockheed’s ROE is currently pegged at 67.8%, better than the industry’s average of 17.3%, which indicates that the company is utilizing its funds more efficiently than its peers.
Price Performance
Over the past six months, the stock has gained 3.7% against the industry’s decline of 4.6%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the same sector include CurtissWright (CW - Free Report) , Transdigm Group (TDG - Free Report) and VirTra (VTSI - Free Report) , each currently holding a Zacks Rank #2.
The average earnings surprise in the last two reporting quarters from CW, TDG and VTSI were 2.6%, 7.9% and 386.5%, respectively.
The Zacks Consensus Estimate for 2023 earnings per share of CurtissWright and VirTra has moved up 0.7% and 9.6%, respectively, in the past 90 days. In the same time frame, the fiscal 2023 earnings estimate for Transdigm Group has moved up 7.6%.
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Reasons Why Lockheed (LMT) Should be in Your Portfolio Now
Lockheed Martin’s (LMT - Free Report) wide market reach, consistent orders from the U.S. government and international customers, as well as its F-35 program, contribute to its strong performance.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Projections
The Zacks Consensus Estimate for second-quarter 2023 earnings per share and revenues is pegged at $6.43 and $15.86 billion, respectively, suggesting an increase of 223.1% and 2.7%, respectively, from the year-ago reported figures.
Surprise History, Dividend Yield and Earnings Growth
Lockheed’s trailing four-quarter earnings surprise is 7.5%, on average.
Its dividend yield is currently pegged at 2.61%, higher than the Zacks S&P 500 Composite’s average of 1.66%.
The company’s long-term (three- to five-year) earnings growth is projected at 6.2%.
Solid Orders and Strong Backlog
Lockheed Martin was successful in clinching several notable deals in the first quarter of 2023, including a $1.1 billion contract to integrate the Conventional Prompt Strike weapon system into ZUMWALT-class guided missile destroyers.
The company also won a $1.95 billion deal for the foreign military sale of 40 UH-60Ms for the Australian Army. Further, Lockheed inked a $179 million contract to support the F-35 Jet Program.
Lockheed’s total backlog came in at a solid $145.09 billion as of Mar 26, 2023. Our model projects LMT’s backlog to increase further in the 2023-2025 period, courtesy of consistent order wins from the United States government and other international customers.
International Foray
Lockheed Martin’s products are also well-acclaimed in the international market. In the first quarter, 26% of the total net sales were from international customers.
The company has also been witnessing strong interest from its international customers in Patriot Advanced Capability-3 (PAC-3) missiles and the Terminal High Altitude Area Defense (THAAD) system, with 14 nations choosing PAC-3 Cost Reduction Initiative (CRI) and PAC-3 Missile Segment Enhancement (MSE) to enhance their missile defense capabilities.
Also, the company continues to witness international interest in the Aegis Ballistic Missile Defense System (Aegis) from international customers, such as Japan, Spain, the Republic of Korea and Australia.
Return on Equity (ROE)
ROE is a measure of a company’s financial performance and shows how it is utilizing its funds. Lockheed’s ROE is currently pegged at 67.8%, better than the industry’s average of 17.3%, which indicates that the company is utilizing its funds more efficiently than its peers.
Price Performance
Over the past six months, the stock has gained 3.7% against the industry’s decline of 4.6%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the same sector include CurtissWright (CW - Free Report) , Transdigm Group (TDG - Free Report) and VirTra (VTSI - Free Report) , each currently holding a Zacks Rank #2.
The average earnings surprise in the last two reporting quarters from CW, TDG and VTSI were 2.6%, 7.9% and 386.5%, respectively.
The Zacks Consensus Estimate for 2023 earnings per share of CurtissWright and VirTra has moved up 0.7% and 9.6%, respectively, in the past 90 days. In the same time frame, the fiscal 2023 earnings estimate for Transdigm Group has moved up 7.6%.