Why Lockheed Is Poised to Outperform

Updated

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 has earned a respected four-star ranking.

With that in mind, let's take a closer look at Lockheed and see what CAPS investors are saying about the stock right now.

Lockheed facts

Headquarters (founded)

Bethesda, Md. (1909)

Market Cap

$28.0 billion

Industry

Aerospace and defense

Trailing-12-Month Revenue

$47.2 billion

Management

CEO Marillyn Hewson (since 2013)

CFO Bruce Tanner (since 2007)

Return on Capital (average, past 3 years)

32.5%

Cash / Debt

$1.9 billion / $6.3 billion

Dividend Yield

5.2%

Competitors

Boeing

Northrop Grumman

Raytheon


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,877 members who have rated Lockheed believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, scrooge007, tapped Lockheed as a particularly solid income opportunity: "Strong, multifaceted government contracts that subsidize its growth in other sectors. Coupled with good dividend history, this is more than a decent investment."

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Lockheed may not be your top choice.

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The article Why Lockheed Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin, Northrop Grumman, and Raytheon Company. 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 Motley Fool has a disclosure policy.

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