2023: Lockheed Martin Shares Take a Dive, Underperforming Market
March 26, 2023
Trending News ☀️
On Thursday, Lockheed Martin ($NYSE:LMT) Corp.’s stock took a dive, underperforming the already weak market. This marked a stark contrast in comparison to the company’s performance in the last several months, when their stock was on a steady upswing. Analysts have suggested that the current decrease in Lockheed Martin’s stock may be an effect of the turbulence in the market, as well as investors’ general apprehension over the security sector. Investors were also reportedly discouraged by the company’s increasing costs, as well as its stagnant sales.
Additionally, other defense companies such as Boeing and Honeywell also experienced decreases in their stocks, furthering speculation that there may be an industrywide issue. Despite these issues, analysts remain generally optimistic about Lockheed Martin’s future. They are confident that the company’s long-term investments will pay off and ultimately result in higher stock prices. Furthermore, the company’s services remain in demand among government and military customers, which should ensure its financial stability and potentially even boost its share value if new contracts are acquired. Overall, Lockheed Martin’s stock may have seen a dip in the short term due to market volatility and investor wariness, but it remains likely that the company will continue to be successful in the long run.
Stock Price
On Friday, the share prices of Lockheed Martin (LMT) took a dive and failed to keep up with the general market trend. The underperformance seen in LMT’s stock could be a sign of things to come for the defense contractor, as the company is facing increasing scrutiny and potential budget cuts due to the current political climate. This, combined with potential fluctuations in the defense industry, could lead to a decline in their stock prices in the near future. Investors should tread carefully when contemplating further investments in LMT. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lockheed Martin. More…
| Total Revenues | Net Income | Net Margin |
| 65.98k | 5.73k | 8.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lockheed Martin. More…
| Operations | Investing | Financing |
| 7.8k | -1.79k | -7.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lockheed Martin. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 52.88k | 43.61k | 36.29 |
Key Ratios Snapshot
Some of the financial key ratios for Lockheed Martin are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | -0.1% | 11.1% |
| FCF Margin | ROE | ROA |
| 9.3% | 43.0% | 8.6% |
Analysis
At GoodWhale, we have been examining LOCKHEED MARTIN‘s fundamentals and everything looks good. According to our Risk Rating, it is a low risk investment in terms of financial and business aspects. However, we have detected 2 risk warnings in their income sheet and balance sheet. If you’d like to get more insights on these risk warnings, please register on our website at goodwhale.com. We will then be able to provide you with more details and analysis. We hope that this information can help you make the best decision when it comes to investing in LOCKHEED MARTIN. More…
Peers
The U.S. Department of Defense (DoD) spends billions of dollars on weapons systems each year. Major weapons systems contractors compete for these funds. The competition among these companies is fierce. The companies must not only offer the best products, but they must also be able to demonstrate to the DoD that their products are superior to those of their competitors.
Lockheed Martin Corp is one of the largest weapons systems contractors in the United States. The company’s main competitors are Northrop Grumman Corp, Ballistic Recovery Systems Inc, and LIG Nex1 Co Ltd.
– Northrop Grumman Corp ($NYSE:NOC)
Northrop Grumman Corp is an American aerospace and defense technology company with a market cap of 78.41B as of 2022. The company has a Return on Equity of 34.54%. Northrop Grumman Corp is a leading provider of aircraft, logistics, and technology solutions for the U.S. military, government, and commercial customers. The company’s products and services include aircraft, space systems, missiles, electronics, and technical services.
– Ballistic Recovery Systems Inc ($OTCPK:BRSI)
Ballistic Recovery Systems Inc is a world leader in the design, manufacture, and deployment of parachutes and other soft goods for the aerospace industry. The company has a market cap of 4.19M as of 2022 and a ROE of -159.06%. Ballistic Recovery Systems Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol BRS.
– LIG Nex1 Co Ltd ($KOSE:079550)
LIG Nex1 Co Ltd is a South Korean defense company specializing in electronics and weaponry. It was founded in 1999 and is headquartered in Seoul. The company has a market cap of 1.87T as of 2022 and a Return on Equity of 14.92%. LIG Nex1 Co Ltd develops, manufactures, and supplies electronics and weapons products for the military, law enforcement, and commercial markets worldwide. The company’s products include radar systems, sonar systems, electronic warfare systems, communication systems, navigation systems, and missile systems.
Summary
Lockheed Martin has recently underperformed the market, with a significant drop in share value. Investors are looking for any positive news that may improve on the company’s current position, but many are expecting further losses due to the uncertain economic outlook. Analysts suggest that long-term investors may benefit from buying into the stock at its current levels, as potential upside may exist in the future.
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