#1 - Lockheed Martin (NYSE:LMT)
Lockheed Martin Corporation (NYSE: LMT) is the largest defense contractor in terms of revenue and market cap. The company's space sector helps to defend the United States and its allies from adversarial threats through programs such as missile defense. Lockheed is also helping create breakthrough technologies that aid space exploration, such as NASA's Orion spacecraft.
Seeing the company's business's scope shows how the space and defense industries are intertwined. Lockheed's space business generated $12.6 billion in revenue in 2023. Not only was that a 9% year-over-year (YOY) increase, it accounted for about 18% of total revenue.
Also, buying one of the mega-cap names in the sector comes with an attractive valuation. LMT stock currently trades at a forward price-to-earnings ratio of 16x. That's lower than the 21.2x average for the aerospace/defense sector. With the company projected to deliver full-year EPS of $28.36 in the next 12 months, Lockheed Martin may have more upside than the 14% analysts are forecasting. Plus, investors get a dividend with a yield of 2.93%.
About Lockheed Martin
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments.
Read More - Current Price
- $466.27
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $485.40 (4.1% Upside)
