Analyst Downgrade and Price Target Adjustment - Deutsche Bank analysts downgraded Lockheed Martin stock from Buy to Hold with a price target of $523, representing a 14% reduction from the previous target [1] - The downgrade was influenced by China's progress in developing a 6th-generation fighter jet, which could impact Lockheed Martin's competitive position in the defense sector [1] Investment Research Service Overview - The Aerospace Forum is a leading aerospace, defense, and airline investment research service on Seeking Alpha, offering access to evoX Data Analytics, an in-house developed data analytics platform [1] - The service aims to uncover investment opportunities in the aerospace, defense, and airline industries, leveraging data-driven analysis and industry expertise [1] Analyst Background and Methodology - Dhierin, the lead analyst, has a background in aerospace engineering and provides detailed analysis of the aerospace and defense industry, focusing on growth prospects and investment implications [1] - The investment ideas are based on data-informed analysis, with direct access to data analytics monitors provided to subscribers [1]

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .As most of my readers may know, I started buying defense contractors during the pandemic, when their stock prices wereAnalyst’s Disclosure: I/we have a beneficial long position in the shares of LMT, NOC either through stock ownership, options, or other derivatives. I wrote this ...

Core Viewpoint - The investment potential in Lockheed Martin stock is significantly influenced by the sales performance of its F-35 fighter jets, which are projected to have a total lifetime value of $1 trillion [1] Group 1: Recent Contracts and Revenue Impact - Lockheed Martin received a major contract on December 20 for 145 F-35 jets valued at $11.8 billion, with deliveries scheduled by June 2027, translating to approximately $4.7 billion in annual revenue [2] - Additional contracts awarded on December 23 totaled $3.7 billion, covering logistics support and engineering services for the F-35, contributing to a total of $15.5 billion in new revenue [3][4] - The $8.4 billion expected in 2025 from these contracts represents 30% of the Aeronautics division's revenue in 2023 and 12.4% of Lockheed Martin's total revenue for that year [5] Group 2: Growth Projections and Market Sentiment - The front-loaded nature of the revenue means that while 2025 will see a significant increase, growth in 2026 and 2027 will be smaller, yet still indicating nearly 7% growth over 2023 revenue, which is double the current analyst forecasts [6] - The stock is currently priced at 17 times trailing earnings, and a growth rate of mid-double-digits is necessary for it to be considered a good investment opportunity [9] - If Lockheed can achieve earnings growth in the 12% range, combined with a 2.7% dividend yield, the stock may become more attractive to investors [10]

Lockheed Martin's F-35 Contract - Lockheed Martin's Aeronautics unit secured a $41.6 million modification contract for the F-35 fighter aircraft from the Naval Air Systems Command, with work primarily in Fort Worth, TX, and completion expected by March 2028 [1][2] - The contract involves engineering, integration support, hardware, and installation for flight test instrumentation modifications to F-35 production aircraft [2] F-35's Market Position and Demand - The F-35 is recognized as the most advanced fifth-generation fighter jet, featuring cutting-edge technology, advanced sensors, and communication systems that enhance situational awareness across multiple domains [4] - Lockheed Martin has delivered 1,040 F-35 aircraft as of Sept 30, 2024, reflecting strong global demand and its position as a cornerstone of modern air defense systems [5] Industry Trends and Growth Prospects - Global defense spending is rising due to military conflicts, terrorism, and border disputes, driving demand for advanced combat jets like the F-35 [3][6] - The global fighter aircraft market is projected to grow at a compound annual growth rate of 3.7% from 2024 to 2029, benefiting Lockheed Martin and other defense companies [6][7] Competitor Opportunities - Northrop Grumman (NOC) is a key player in the fighter aircraft market, with a long-term earnings growth rate of 19% and a 3.4% projected sales growth for 2025 [8][9] - Embraer (ERJ) offers advanced combat aircraft like the A-29 Super Tucano and C-390 Millennium, with a projected 18.3% sales growth for 2025 and a strong earnings surprise history [9][10] - Textron (TXT) provides advanced flight training systems and aircraft like the Beechcraft AT-6E Wolverine, with a long-term earnings growth rate of 10.1% and a 7.4% projected sales growth for 2025 [11][12] Lockheed Martin's Stock Performance - Lockheed Martin's stock has gained 1.7% in the past six months, outperforming the industry's 0.9% decline [13]

Investment Strategy - The portfolio aims to generate sufficient dividend income to sustain living expenses, focusing on companies that offer reliable and growing dividends regardless of market conditions [1] - Value dividend investing is highlighted as an effective strategy, allowing investors to acquire quality companies at favorable prices while receiving cash flow without selling their positions [1] Portfolio Construction - The investor is building a portfolio of dividend growth stocks, leveraging their finance background and career experience to identify opportunities [1] Content Sharing - The investor shares insights on platforms such as Seeking Alpha, Twitter, and YouTube, providing analysis and opinions on dividend growth investing [1]

Going from worst to first is a concept that’s often true in investing. Stocks that lag the market one year are often some of the best stocks to own the following year. Although market timing is tricky, the challenge for investors is finding these stocks before they make a big turn.  Fortunately, there are several indicators that can point you in the right direction. For example, you can look at analyst forecasts. When a stock is trading below its consensus price, that’s a good indication that there may be s ...

Lockheed Martin (LMT) ended the recent trading session at $483.37, demonstrating a -1.15% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 1.19%.Prior to today's trading, shares of the aerospace and defense company had lost 7.64% over the past month. This has lagged the Aerospace sector's loss of 2.91% and the S&P 500's loss of 0.36% in that time.Analysts and investors alike will be keeping a c ...

Deal Details - The contract supports the U S Air Force Marine Corps Navy Foreign Military Sales customers and nonDepartment of Defense DOD program partners with a major portion of the work carried out in Fort Worth TX [1] - Valued at $3 37 billion the contract is expected to be completed by December 2025 with Lockheed providing logistics support for delivered F-35 jets including ground maintenance supply-chain management and training [10] Lockheed Martin LMT - LMT's Aeronautics business unit secured a modification contract for its F-35 Lightning II Joint Strike Fighter program awarded by the Naval Air Systems Command [4] - LMT has delivered 1 040 F-35 airplanes as of Sept 30 2024 reflecting strong demand for the fifth-generation jet [11] - LMT's robust portfolio includes the F-16 F-22 F-21 and F-35 jets benefiting from rising global defense spending [5][13] - Shares of LMT gained 4 8% in the past six months against the industry's 1 1% decline [18] Growth Prospects - Mordor Intelligence forecasts a compound annual growth rate of 3 7% for the global fighter aircraft market during 2024-2029 [8] - Escalating military conflicts terrorism and border disputes combined with advancements in combat jet technology are driving demand for fighter jets [12] Other Defense Companies - Northrop Grumman NOC has a long-term earnings growth rate of 19 1% with 2024 sales expected to grow 5 3% year-over-year [15] - Embraer ERJ's 2024 sales are expected to grow 18 6% year-over-year with earnings per share projected to grow 379 1% [16] - Boeing BA has a long-term earnings growth rate of 19 3% with 2025 sales expected to grow 22 5% year-over-year [17] - NOC builds advanced aircraft like the E-2C Hawkeye 2000 A-10 Thunderbolt II and F-5 Tiger Fighter Jet [2] - ERJ offers advanced aircraft including the A-29 Super Tucano and C-390 Millennium [6] - BA's Defense Space & Security segment produces combat-proven aircraft like the F/A-18 Super Hornet and C-17 Globemaster III [9]

Industry Overview - The global defense industry's growth outlook remains robust due to heightened geopolitical tensions, leading to increased defense spending worldwide [15] - Aerospace-defense firms face labor shortages, with 29% of industry employees over 55 and a projected gap of 3.5 million workers by 2026 [1] Company Performance - Lockheed Martin's share price declined 16.1% in the past three months, underperforming the Aerospace-Defense industry's decline of 7.2% and the S&P 500's return of 5.6% [7] - Third-quarter 2024 revenues of $17.28 billion lagged analysts' expectations, contributing to the stock's downward movement [8] - The company's backlog rose sequentially to $165.69 billion as of Sept. 30, 2024, from $158.34 billion, supporting revenue growth [15] Financial Metrics - Lockheed's cash and cash equivalents totaled $3.15 billion at the end of the third quarter of 2024, with current debt of $0.14 billion, indicating strong solvency [4] - The consensus estimate for long-term (three-to-five years) earnings growth rate is pegged at 4.5% [6] - The Zacks Consensus Estimate for 2024 and 2025 sales reflects an improvement of 5.5% and 4.1%, respectively, year over year [25] Challenges - The Canadian Maritime Helicopter Program ("CMHP") has faced performance issues, including delivery delays, with cumulative losses of approximately $100 million as of Sept. 30, 2024 [17] - U.S. sanctions imposed in 2020 affected Lockheed's ability to execute contracts under the Turkish Utility Helicopter Program ("TUHP"), potentially leading to significant reachforward losses [20][26] Valuation - Lockheed's forward 12-month price-to-earnings (P/E) is 17.47X, a premium to its peer group's average of 15.80X, suggesting a higher price relative to expected earnings growth [18] Comparative Performance - Other aerospace manufacturers like Boeing (BA), Airbus Group (EADSY), and Embraer (ERJ) have seen share price surges of 18.7%, 10.6%, and 3%, respectively, over the past three months [3]

In the latest trading session, Lockheed Martin (LMT) closed at $488.13, marking a +0.34% move from the previous day. The stock lagged the S&P 500's daily gain of 1.1%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 1.35%.Shares of the aerospace and defense company witnessed a loss of 6.78% over the previous month, trailing the performance of the Aerospace sector with its loss of 4.17% and the S&P 500's gain of 0.22%.Market participants will be closely following the financial results ...