Joining us now to discuss [music] is James Tlet, the CEO of Lockheed, along with PG& CEO Patty Poppy and of course our very own Morgan Brennan. Welcome to all of you. Morgan, kick things off.>> All right, Kelly, thank you. And Jim and Patty, it's great to speak with you. Jim, I'll kick this off with you.Ember Point, this is the venture that you guys are announcing today. How did this come together and why did this come together. The way it came together was Patty and I uh along with a number of other utilit ...

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Wall Street analysts expect Lockheed Martin (LMT) to post quarterly earnings of $6.05 per share in its upcoming report, which indicates a year-over-year decline of 21.1%. Revenues are expected to be $19.83 billion, up 6.5% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior t ...

Group 1: Corporate Earnings Insights - The earnings reports from Tesla, Microsoft, Meta, and Apple represent a critical test for technology sector leadership and AI infrastructure investment narratives [1][2] - Microsoft's Azure cloud growth and AI monetization through Copilot will be crucial for validating the AI infrastructure investment thesis [1] - Meta's results will assess whether Reality Labs losses are justified by metaverse progress while digital advertising continues to fund innovation [1] - Tesla's delivery numbers, automotive margins, and energy storage performance will be closely scrutinized amid ongoing questions about EV demand and autonomous driving timelines [1] - Apple's iPhone demand in China and services revenue growth will be particularly important given trade tensions [1] Group 2: Federal Reserve Meeting and Economic Context - The Federal Reserve meeting represents a critical juncture for policymakers to decide on interest rate adjustments amid persistent inflation concerns [3] - Chair Powell's press conference will provide insights into the Fed's policy trajectory and economic projections, influencing market expectations [3] - The timing of the Fed decision coinciding with major tech earnings creates a complex environment where monetary policy and corporate fundamentals will compete for market attention [3] Group 3: Trade Policy and Supply Chain Implications - President Trump's threat of 100% tariffs on Canadian goods marks a significant escalation in protectionist rhetoric, creating uncertainty for North American supply chains [4] - The potential impact of tariff threats on sectors with cross-border operations, such as automotive and aerospace, will be closely monitored [4] - Trump's speeches preceding major industrial earnings could amplify reactions if companies address trade policy impacts on their operations [4] Group 4: Industrial and Energy Sector Perspectives - Earnings from UnitedHealth, Boeing, General Motors, and UPS will provide insights into healthcare costs, aerospace manufacturing, automotive demand, and logistics activity [5][6] - The industrial earnings cluster will help assess business investment and capital spending resilience amid economic and trade policy uncertainties [6] - Earnings from Exxon and Chevron will offer perspectives on oil and gas markets, refining margins, and energy sector capital allocation amid volatile commodity prices [7] - Visa and Mastercard earnings will test payment network health and consumer spending resilience through transaction volume trends [7]

Core Viewpoint - Lockheed Martin Corporation (NYSE:LMT) is experiencing favorable conditions in both commercial and defense sectors, leading to increased price targets and production capabilities [2][3]. Group 1: Financial Performance and Projections - Susquehanna raised its price target for Lockheed Martin from $590 to $660, maintaining a Positive rating on the shares, reflecting confidence in the company's performance [2]. - The aerospace and defense industry is showing strong trends, with steady defense spending and healthy aftermarket demand, prompting higher valuation targets across the sector [3]. Group 2: Production and Delivery Achievements - Lockheed Martin set a new annual record by delivering 191 F-35 fighter jets in 2025, significantly increasing production rates, which are now five times faster than any other allied fighter in production [4]. - The F-35 program is a major profit driver for Lockheed, accounting for approximately one-third of total revenue, with consistent demand due to rising defense budgets amid geopolitical tensions [4]. Group 3: Strategic Agreements and Capacity Expansion - Lockheed Martin signed a seven-year agreement with the U.S. Department of War to increase annual production capacity of PAC-3 missile interceptors to 2,000 units from around 600, reflecting growing interest in air defense systems [5].

If Trump follows through on his dividend ban threat, two (or three) defense stocks could be at particular risk.No doubt about it -- President Donald Trump spooked a lot of investors in defense stocks earlier this month.Writing on Truth Social about "exorbitant and unjustifiable" executive compensation in the defense industry, "massive Dividends," and "massive Stock Buybacks," all paid "at the expense and detriment of investing in Plants and Equipment," the president declared that "no Executive should be all ...

Group 1 - Seaport Global raised the target price for Lockheed Martin from $544 to $664, maintaining a "Buy" rating [1]

Core Insights - Geopolitical instability is driving growth for defense companies like Boeing and Lockheed Martin, with significant revenue from the U.S. government [1][2] - Proposed military spending by the U.S. government is set to increase to $1.5 trillion in fiscal 2027, which could lead to more contract opportunities for defense firms [2] Boeing (BA) Overview - Boeing's defense and space business outlook is optimistic, benefiting from its status as a major defense contractor and the U.S. government's focus on defense [4] - In Q4, Boeing's commercial aircraft deliveries rose by 180.7% year-over-year, while defense shipments increased by 2.8%, indicating improved cash flow and operational management [5] - Boeing forecasts a $4.7 trillion market opportunity for commercial aviation support and services from 2025 to 2044, with a backlog of $24.63 billion as of September 30, 2025 [6] Lockheed Martin (LMT) Overview - Lockheed Martin maintains a strong position as a leading U.S. defense contractor, with a platform-based strategy that ensures recurring orders [7] - The F-35 program is a key growth driver, contributing approximately 26% of total net sales in Q3 2025, supported by strong deliveries and a significant backlog [7][8] - Lockheed Martin's backlog reached $179.1 billion, with major contracts expected to convert into revenues over the next two years, enhancing long-term growth visibility [8] Comparative Analysis - Boeing is experiencing a rebound in commercial aircraft deliveries and benefits from rising defense priorities, with a projected long-term earnings growth rate of 31.33% and a Zacks Consensus Estimate for 2026 EPS indicating a 111.7% increase year-over-year [11][12] - Lockheed Martin's 2026 EPS is estimated to grow by 34.07% year-over-year, with a long-term earnings growth rate of 11.85% [11][14] - Boeing's shares trade at a forward Price/Sales ratio of 1.99, compared to Lockheed Martin's 1.74, indicating a relative valuation perspective [15] Liquidity and Performance - Boeing's current ratio is 1.18, while Lockheed Martin's is 1.13, suggesting both companies have sufficient short-term assets to cover liabilities [16] - Over the past year, Boeing's shares have increased by 43%, while Lockheed Martin's shares have risen by 17.5%, reflecting stronger market performance for Boeing [17] Investment Recommendation - Boeing shows improving momentum in defense, space, and commercial sectors, supported by rising aircraft deliveries and favorable government priorities, making it a more attractive investment compared to Lockheed Martin [18][19]

Core Thesis - The article initiates coverage of Lockheed Martin (LMT), highlighting a strong competitive position and diverse business lines, despite a recent 33% increase in stock price [1] Company Overview - Lockheed Martin operates in the aerospace and defense sector, which is characterized by a wide competitive moat and robust business lines [1] Investment Philosophy - The investment approach focuses on fundamental valuation, aiming to identify underpriced securities based on potential future cash flows [1] - Tactical allocation is employed, with more aggressive investments during lower equity prices and conservative investments when prices are higher [1] Performance Metrics - The current demo portfolio, initiated in April 2025 with approximately $8,000, has achieved a Sharpe ratio of 3.49, outperforming the IVV's ratio of 2.42 during the same period [1] - The average time-weighted return of the demo portfolio is 0.30% per day, compared to IVV's 0.14% per day [1]

Group 1: Dividend Stocks Overview - Dividend stocks are important for both veteran and inexperienced investors, offering portfolio diversification and potential long-term gains [1] - Not all dividend stocks are equal; focus should be on established companies with a history of consistent dividend payments [1] Group 2: Chevron Analysis - Chevron has raised its dividend annually for nearly four decades, demonstrating a strong commitment to shareholder rewards [3] - The stock offers a forward yield of 4.1% and has provided a total return of over 493% in the past 20 years [4] - The company's acquisition of Hess adds valuable assets in Guyana and the Bakken shale, positioning Chevron for future growth [5] Group 3: Lockheed Martin Analysis - Lockheed Martin is a significant player in the defense industry, which may not be the first choice for income investors but is worth considering [6] - The company has a record backlog of $179 billion, indicating strong demand for its products and solid long-term growth prospects [7] - Steady free cash flow generation makes Lockheed Martin a viable option for investors seeking stability [7]