citybizlist : Washington DC : Is Lockheed Martin Stock a Buy? – Citybizlist Real Estate
Lockheed Martin (NYSE:LMT) has a new general in charge, with Jim Taiclet on June 15 replacing Marillyn A. Hewson as CEO in a planned leadership transition. Taiclet has big shoes to fill. During Hewson’s 2013-2020 tenure as CEO, Lockheed Martin shares climbed more than 300%, easily outpacing the S&P 500‘s 115% gain.
It’s going to be hard to keep that momentum going. In recent years, Lockheed Martin shares have ridden the wave of increased defense spending, but due to COVID-19 and other reasons those increases are likely to shrink in the years to come.
A change in leadership is often a good time to reassess a stock. Here is a deep dive into Lockheed Martin’s outlook to determine if the aerospace, defense, arms, security, and advanced technologies company is still a good buy today.
New leader, same great portfolio
Hewson did a solid job, but much of Lockheed’s success in recent years has come down to the strength of its portfolio. The company is best known for the F-35 Joint Strike Fighter, a trillion-dollar program for Lockheed and its subcontractors that is just beginning to ramp up to full production. The U.S. and its allies will buy hundreds of airframes annually for the rest of the decade, providing a steady revenue stream.
IMAGE SOURCE: LOCKHEED MARTIN.
But Lockheed Martin is far from a one-trick pony. The company has a large missile and missile defense business, including the