4-Star Stocks Poised to Pop: Lockheed Martin
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense contracting giant Lockheed Martin (NYS: LMT) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Lockheed's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Bethesda, Md. (1909)|
|Market Cap||$26.2 billion|
|Industry||Aerospace and defense|
|Trailing-12-Month Revenue||$47.2 billion|
|Management||Chairman/CEO Robert Stevens|
President/COO Christopher Kubasik
|Return on Capital (Average, Past 3 Years)||27.7%|
|Cash/Debt||$4.57 billion / $7.04 billion|
|Competitors||Boeing (NYS: BA) |
Honeywell International (NYS: HON)
United Technologies (NYS: UTX)
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this month, jdwelch62 tapped Lockheed as a cheap way to play defense: "Very low P/E, great dividend, and with as many crazies who hate us out there, is the [Department of Defense's] budget really gonna get cut all that much? National defense will always be a priority."
In fact, Lockheed sports a cheapish P/E of 9.5. That represents a discount to competitors like Boeing (14.6), Honeywell (15.9), and United Technologies (13.9).
CAPS member TrackFortune2012 elaborates on the bargain opportunity:
A big hang over this stock is the expected cut to the U.S. defense budget. We know it's coming, the question is how much. But Fortune doesn't think the cuts will be that bad in an election year. And the company has a $73 billion order backlog plus expected earnings growth of 2% next year and 10% in 2013.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Lockheed. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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