LMT - 3 Things You Need to Know if You Buy Lockheed Martin Today
2023-11-22 08:00:00 ET
The investment proposition for Lockheed Martin (NYSE: LMT) stock is far from simple. Several puts and takes could impact its near- and long-term earnings growth trajectory. In that vein, investors must consider a few things before putting money to work in the stock.
Lockheed Martin and competitors like Boeing and RTX have shared one big thing over the last few years. Namely, ongoing supply chain issues have constrained their ability to deliver products and put pressure on margins. Boeing and RTX have both lowered their full-year defense business expectations on account of them. It's incredibly disappointing because all three have excellent backlogs and good order momentum.
It's especially problematic on fixed-price programs signed in less cost inflationary days -- the defense contractor is left trying to execute a program while costs are soaring. In theory, these headwinds should turn into tailwinds in the coming years as the supply chain bottlenecks ease.
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3 Things You Need to Know if You Buy Lockheed Martin Today