RNMBF - Lockheed Martin: Bulletproof Your Portfolio Against Global Conflict (Technical Analysis)

2024-06-21 10:46:30 ET

Summary

• The world is facing a challenging period of uncertainty and unrest.
• Demand for LMT products is growing, but the stock's multiple remains depressed.
• We think there could be an upside here as investors begin to appreciate LMT's long-term value and the multiple expands.
• We reiterate our 'Strong Buy' rating and see a 40%+ upside for investors from this point.

In terms of global conflict, it has been a pretty turbulent few years.

First, in February of 2022, Russia invaded Ukraine, which sent shockwaves through the global geopolitical and defense establishment, as Europe quickly recognized how unprepared for war it really was.

This led to billions of euros being poured into defense spending, which has benefitted European arms manufacturers to a large degree. For evidence of this, check out this 5-year chart of Rheinmetall ( RNMBF ), one of Germany's top defense contractors:

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