$LMT — Lockheed Martin has been getting far more retail interest than usual due to the events that have transpired between Russia and Ukraine. This analysis sets out to determine if LMT Stock is still a buy given their recent retail hype.
LMT Stocktwits:
To find some general information about LMT, I decided to take a look at the messages posted in the LMT Stocktwits to see what the retail investors see in the LMT stock.
The majority of bulls are mentioning “Russia” and “Defense” insider of the LMT Stocktwits forum.
These two mentions go hand in hand as LMT provides military and rotor-wing aircrafts to the US Army, underwater vehicles, radar systems, all types of military boats/ships, armoured vehicles (tanks etc), cyber protection and many more products. The vast majority of their products are sold to the military, which has led people to believe that they might receive new orders/contract depending on the level of escalation and US involvement in Ukraine.
LMT is a moderately followed stock on Stocktwits, as the LMT Stocktwits forum has 23,000 followers, and over 375 daily messages. StockTwits is not the best source for investment information and advice (obviously), but it helps us to gain a proxy for retail investment sentiment and ideas. The LMT StockTwits has a 93% bullish sentiment (On LMT Stocktwits). By looking at some simple figures, we can see that the LMT Stocktwits community (and retail investment community) likes LMT… but is it any good?
LMT Stock Overview:
The defense sector has done very well recently with the escalating conflict between Russia and Ukraine, but LMT has remained relatively flat (which is good compared to the broad market).
Furthermore, their value multiples look to be good, other than their P/B of 9.6 which is very high. The average analyst estimate is also $307/share, so there is a little bit of an implied upside (plus they pay a dividend which has an ex-div date of Feb 28 th, so scoop up some shares quickly if you want to get a piece of their dividend).
LMT Stock Financial Position:
LMT has been around for a very long time and is a very stable company. As a result, I am expecting to see low growth in their revenues and other financial figures. This has been the case over the past 3 years as they have increased their revenues by 7.6%/year, gross profit by 6.7%/year, operating income by 7.1%/year, net incomes by 8%/year, and Free Cash Flows by 9.9%/year (all figures are a yearly average growth).
Overall, LMT looks like a very stable and healthy company, that is slightly undervalued, and is getting a lot of investor interest recently. I think that these factors will come together to drive up the price of LMT in the short term, I think to above $400/share (my PT is $410).
This thought is shared by fellow Utradea member “MarketMadness” who has written his own analysis and has a price target of $400/share.
Overall Thoughts on LMT Stock:
Overall, I think the best way to profit off of LMT Stock is to be bullish in the short to medium-term. This is de to the increased attention, the nature of their business, and their stable yet growing financials.
Originally published at https://utradea.com.
