LMT At Price Support Zone, Right Time To Buy?
Lockheed Martin (LMT) should be on your watchlist. Here is why – it is currently trading in the support zone ($418.61 – $462.67), levels from which it has bounced meaningfully before. In the last 10 years, the stock received buying interest at this level 8 times and subsequently went on to generate 12.8% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 10/21/2022 | 9.8% | 42 |
| 1/17/2023 | 12.8% | 91 |
| 10/9/2023 | 6.9% | 95 |
| 2/28/2024 | 10.2% | 100 |
| 6/7/2024 | 0.3% | 17 |
| 7/9/2024 | 34.3% | 104 |
| 2/14/2025 | 14.1% | 24 |
| 4/7/2025 | 13.7% | 67 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For LMT Read Buy or Sell LMT Stock to see how convincing this buy opportunity might be.
Here are some quick data points:
- Revenue Growth: 3.1% LTM and 3.0% last 3 year average.
- Cash Generation: Nearly 6.9% free cash flow margin and 10.3% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for LMT was 1.1%.
- Valuation: LMT trades at a PE multiple of 18.6
- Opportunity vs S&P: Compared to S&P, you get lower valuation, lower revenue growth, and lower margins
Lockheed Martin provides research, design, development, and integration of technology systems across aeronautics, missiles, rotary missions, and space, including satellites, space transport, and advanced missile systems.
- Can Lockheed Martin Stock Recover If Markets Fall?
- GD Tops Lockheed Martin Stock on Price & Potential
- TDG, GD Look Smarter Buy Than Lockheed Martin Stock
- How Will Lockheed Martin Stock React To Its Upcoming Earnings?
- Better Bet Than Lockheed Martin Stock: Pay Less To Get More From TDG, GD
- Better Bet Than Lockheed Martin Stock: Pay Less To Get More From GD
| LMT | S&P Median | |
|---|---|---|
| Sector | Industrials | – |
| Industry | Aerospace & Defense | – |
| PE Ratio | 18.6 | 23.6 |
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| LTM* Revenue Growth | 3.1% | 5.0% |
| 3Y Average Annual Revenue Growth | 3.0% | 5.8% |
| Min Annual Revenue Growth Last 3Y | 1.1% | -0.3% |
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| LTM* Operating Margin | 10.3% | 18.6% |
| 3Y Average Operating Margin | 11.8% | 17.5% |
| LTM* Free Cash Flow Margin | 6.9% | 13.0% |
*LTM: Last Twelve Months
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
What Is Stock-Specific Risk If The Market Crashes?
That said, LMT isn’t immune to major sell-offs. It fell about 62% in the Dot-Com crash and 51% during the Global Financial Crisis. Even smaller shocks hurt – like a 37% dip in the Covid pandemic and 30% in the 2018 correction. The recent inflation scare knocked it down almost 20%. Strong companies can still take big hits when markets turn.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read LMT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.