Lockheed Martin Shares Soar 35% Despite Double-Digit Market Downturn, Reaffirming Defensive Equities’ Stability
January 6, 2023
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Lockheed Martin ($NYSE:LMT) is a US-based global security and aerospace company that is renowned for its robust portfolio of innovative products and services. The success of Lockheed Martin has proven to be an eye-opener for investors as it showcases the potential of defensive equities to overcome global economic turmoil and contractionary monetary policy. With geopolitics continuing to be a major issue in 2022, defense stocks have become a safe haven for investors, which has been reflected in the increasing demand for Lockheed Martin’s products and services. Despite the current market conditions, Lockheed Martin continues to generate strong cash flow through its lucrative defense contracts and long-term relationships with major customers. It also provides strong dividend yields and is well-positioned to benefit from any potential future increase in defense spending. Further, its diversified portfolio of products and services provides it with a competitive edge over its peers. This is due to the defensive nature of defense stocks, which will act as a buffer against any potential market downturn.
In addition, with geopolitical tensions continuing to rise, there is an increased need for defense products and services, making Lockheed Martin an attractive option for investors.
Share Price
This surge in share price reaffirms the stability of defensive equities and is a positive sign for other stocks in the sector. On Thursday, Lockheed Martin stock opened at $475.7 and closed at $477.1, up 0.1% from its prior closing price of $476.5. Media sentiment is mostly positive, as this surge in share price indicates investor confidence in the company’s future. This jump in share price is especially impressive given the current economic climate.
However, Lockheed Martin’s defensive equities have been relatively stable throughout, and the recent surge in share price serves as further proof of this resilience. Lockheed Martin’s stability is further evidenced by its strong track record of dividend payments to shareholders. Over the past few quarters, the company has consistently paid out quarterly dividends, indicating a commitment to rewarding shareholders with income even during times of uncertainty. This is an important factor for investors when assessing potential investments, and it is clear that Lockheed Martin is well-positioned for future growth. Overall, the recent surge in Lockheed Martin share price serves as a reminder of the stability of defensive equities and their importance in a volatile market. With investors confident in the company’s future and its commitment to rewarding shareholders, it is likely that Lockheed Martin’s stock will remain steady despite market downturns. 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 |
| 64.72k | 5.87k | 9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lockheed Martin. More…
| Operations | Investing | Financing |
| 10.14k | -1.52k | -8.92k |
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 |
| 52.03k | 40.06k | 43.11 |
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 |
| 3.5% | 0.7% | 11.7% |
| FCF Margin | ROE | ROA |
| 13.2% | 40.3% | 9.1% |
VI Analysis
LOCKHEED MARTIN is an American aerospace and defense company and one of the largest in the world. The company’s fundamentals are important indicators of its long term potential, and VI app provides a simple way to analyze the company’s financial health. Based on VI Risk Rating, LOCKHEED MARTIN is rated as a medium risk investment in terms of financial and business aspects. The app has identified two risk warnings in the company’s income sheet and balance sheet. These warnings may indicate potential risks that investors need to consider before investing in LOCKHEED MARTIN. Interested investors can register with VI to access more detailed information and analysis of the company. Overall, LOCKHEED MARTIN is a large and established aerospace and defense company, but investors should take into consideration the potential risks associated with the company before investing. The app provides an easy way to assess the company’s financial health and identify any potential risks. More…
VI 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
Despite a double-digit market downturn, shares of Lockheed Martin have soared by 35%. This demonstrates the company’s stability as a defensive equity, and investors have responded favourably, with a positive media sentiment. By investing in Lockheed Martin, investors are likely to see steady returns on their investment.
With a diversified portfolio approach, investors can expect their portfolios to remain resilient in times of market volatility. Lockheed Martin’s strong performance is an indication that investors can trust the company to deliver returns in the long-term.
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