Top Picks 2019- Lockheed Martin LMT
Money Show
Published Jan 14, 2019 05:00AM ET
Updated Jan 14, 2019 07:15AM ET
Lockheed Martin (NYSE:LMT) is a defense prime contractor with key businesses in Aeronautics (F-35, F-16, F-22 programs), mission systems (cybersecurity and surveillance) and missiles, suggests John Eade, analyst with the leading independent research firm, Argus Research.
With a Republican in the White House, the outlook for defense spending has brightened and is a far cry from the days of sequestration.
Congress recently easily passed a $717 billion defense spending package for FY19. In addition, President Trump is urging U.S. allies to beef up their defense spending.
The company has a record of double-digit dividend hikes, including a 10% increase in September 2018. The double-digit hike underscores LMT’s financial strength, strong focus on shareholder returns, and positive growth outlook.
Lockheed is a well-managed company with a long record of market outperformance. Management consistently sets conservative guidance and raises its outlook as the year progresses. Returns have topped the industry ETF IYJ over trailing one-year and five-year periods.
The shares are attractively valued compared to the historical record. They are trading 18% below their all-time high amid trade and tariff concerns.
The projected 2019 P/E of 17 is toward the low end of historical range of 15-24. The dividend yield of 3.0% is at high end of the industry range, signaling value. Our 12-month target price is $385 per share.
Subscribe to Argus Research here…
Get The News You Want
Written By: Money Show
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.