LMT - Defying Odds: Why Lockheed Martin Remains A Premier Investment Choice

2024-02-21 07:30:03 ET

Summary

• Lockheed Martin's recent performance has lagged behind the S&P 500, but has still returned 243% over the past ten years.
• The company achieved a record backlog of $161 billion in 2023, indicating strong demand across its portfolio.
• Despite challenges with the F-35 program, Lockheed Martin remains optimistic about sustained growth in sales, profit, and free cash flow.

Introduction

The aerospace & defense industry is one of the cornerstones of my research. Not only does it make sense to stay on top of important developments, given my >25% exposure to this industry, but I believe that (most) defense contractors offer terrific long-term value thanks to anti-cyclical demand, dominant supply chains, and a focus on shareholder value.

My largest investment is Lockheed Martin ( LMT ) , which accounts for roughly 8% of my entire dividend growth portfolio.

However, as some of my readers may remember from prior defense-focused articles, I prefer other defense stocks over LMT, including L3Harris Technologies ( LHX ) and the RTX Corporation ( RTX ), formerly known as Raytheon Technologies....

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