LMT stock: buy or sell?
Updated on:
November 19th, 2019
4
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.
Should I buy LMT stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.None of our preferred buy setups matches with Lockheed Martin stock situation right now, therefore this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Lockheed Martin stock a buy?
Banks and financial institutions publish stock ratings everyday.
At Stocks2.com, we detected 10 ratings published for LMT stock in the last month.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-14 | Morgan Stanley | n/a | Equal Weight |
| 2019-7-25 | DZ Bank | Buy | Hold |
| 2019-7-24 | JPMorgan Chase & Co. | n/a | Neutral |
| 2019-7-24 | Credit Suisse Group | n/a | Neutral |
| 2019-6-14 | Morgan Stanley | n/a | Equal Weight |
| 2019-5-16 | Barclays | n/a | Equal Weight |
| 2019-4-24 | UBS Group | Buy | Buy |
| 2019-4-24 | Bank of America | Buy | Buy |
| 2019-2-5 | Jefferies Financial Group | n/a | Hold |
| 2019-2-13 | Morgan Stanley | Equal Weight | Equal Weight |
LMT stock analysis
Daily outlook
Shares of Lockheed Martin depreciated a bad -0.50% and closed at $390.81.
Lockheed Martin shares depreciated -0.50% to $390.81 yesterday. LMT broke out again over $380.95 after a 2.53% correction started on November 1st. On November 6th LMT price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On September, LMT hit new all time highs, pushing higher previous ATH of $394.60 recorded on September. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
Lockheed Martin depreciated a disappointing -0.70% this week.
Observing the weekly chart, LMT marked an uptrend of rising tops and rising bottoms. Since its last top by mid September at $399.96, price slid and bounced up back from $363.00. Breaking down under $363.00 would cancel the current uptrend and it might test lower supports. Note that $399.96 might act as a resistance line. Not so far away is the last all-time high Lockheed Martin marked by mid September. Since late May when SMA20w and SMA40w crossed up, LMT price gained $56.92 per share (17.05%). Since price and SMA40w lines crossed up early April, LMT climbed $91.90 (30.75%).
LMT stock price history
LMT stock historical price chart
LMT stock reached all-time highs on September with a price of $399.96.
LMT stock price target is $366.40
Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 9 price forecasts for Lockheed Martin stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-8-14 | Morgan Stanley | Raises Target | $356.00 | $376.00 | 5.6% |
| 2019-7-24 | JPMorgan Chase & Co. | Raises Target | $360.00 | $395.00 | 9.7% |
| 2019-7-24 | Credit Suisse Group | Reiterates | $369.00 | $379.00 | 2.7% |
| 2019-6-14 | Morgan Stanley | Raises Target | $324.00 | $356.00 | 9.9% |
| 2019-5-16 | Barclays | Raises Target | $340.00 | $370.00 | 8.8% |
| 2019-4-24 | UBS Group | Raises Target | $365.00 | $385.00 | 5.5% |
| 2019-4-24 | Bank of America | Reiterates | $390.00 | $400.00 | 2.6% |
| 2019-2-5 | Jefferies Financial Group | Reiterates | n/a | $313.00 | - |
| 2019-2-13 | Morgan Stanley | Raises Target | $300.00 | $324.00 | 8% |
| (in average) | $350.50 | $366.40 | 5.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Since last April, when Lockheed Martin published its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this report.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 3.23 | n/a |
| 2017-Q3 | 2017-10-24 | 3.26 | 3.24 | -0.6% |
| 2017-Q4 | 2018-01-29 | 4.07 | -2.25 | n/a |
| 2018-Q1 | 2018-04-24 | 3.35 | 4.02 | 20.0% |
| 2018-Q2 | 2018-07-24 | 3.89 | 4.31 | 10.8% |
| 2018-Q3 | 2018-10-23 | 4.32 | 5.14 | 19.0% |
| 2018-Q4 | 2019-01-29 | 4.39 | 4.39 | 0.0% |
| 2019-Q1 | 2019-04-22 | 4.33 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2017, last anual turnover report draw a pretty good growth of 7.61% to $53,762.00 million dollars. By contrast, its profit margin (compared to sales) jumped to 9.39%, that is $5,046.00 million. To have an updated picture of the financial situation of Lockheed Martin, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Lockheed Martin TTM sales up to March 2019 were $56,463.00 and earnings were $5,593.00 M USD. When comparing this TTM figures with the last reported annuality, we can review Lockheed Martin business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, escalated a decent 5.02%. Regarding profit margin, Lockheed Martin stayed constant 0.52% to 9.39%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $45,360 M | - | $2,950 M6.5% | - |
| 2014 | $45,600 M | 0.53% | $3,614 M7.9% | 22.51% |
| 2015 | $46,132 M | 1.17% | $3,605 M7.8% | -0.25% |
| 2016 | $47,248 M | 2.42% | $5,302 M11.2% | 47.07% |
| 2017 | $49,960 M | 5.74% | $1,963 M3.9% | -62.98% |
| 2018 | $53,762 M | 7.61% | $5,046 M9.4% | 157.06% |
| TTM | $56,463 M | 5.02% | $5,593 M9.9% | 10.84% |
Quarterly financial results
Lockheed Martin reported $14,336.00 million in revenues for 2019-Q1, a -0.52% decline compared to previous quarter. Reported quarter earnings marked $1,704.00 million with a profit margin of 11.89%. Profit margin appreciated a 3.19% compared to previous quarter when profit margin was 8.69%. When comparing revenues to same quarter last year, Lockheed Martin sales marked a dazzling growth and boosted a 23.21%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $12,690 M | - | $942 M7.4% | - |
| 2017-Q3 | $12,170 M | -4.10% | $939 M7.7% | -0.32% |
| 2017-Q4 | $14,932 M | 22.70% | $-705 M-4.7% | -175.08% |
| 2018-Q1 | $11,635 M | -22.08% | $1,157 M9.9% | -264.11% |
| 2018-Q2 | $13,398 M | 15.15% | $1,163 M8.7% | 0.52% |
| 2018-Q3 | $14,318 M | 6.87% | $1,473 M10.3% | 26.66% |
| 2018-Q4 | $14,411 M | 0.65% | $1,253 M8.7% | -14.94% |
| 2019-Q1 | $14,336 M | -0.52% | $1,704 M11.9% | 35.99% |
Lockheed Martin ownership
When you are planning to buy shares of a company, it's worth to check its ownership structure.Lockheed Martin shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.09% of all shares.
In case of Lockheed Martin stock, 78.66% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for LMT stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Lockheed Martin:
| LMT | AVAV | BA | GD | KTOS | |
|---|---|---|---|---|---|
| Market cap | $110.2 B | $1.5 B | $206.5 B | $54.0 B | $2.1 B |
| Total shares | 282.1 M | 24.0 M | 562.8 M | 289.3 M | 106.3 M |
| Float shares | 237.6 M | 21.5 M | 528.7 M | 257.3 M | 103.8 M |
| - Institutional holdings (%) | 78.7% | 88.7% | 70.6% | 87.8% | 87.6% |
| - Insider holdings (%) | 0.1% | 10.7% | 0.1% | 6.0% | 2.0% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
LMT summary
| Tuesday, November 19th, 2019 | |
|---|---|
| Open | $394.00 |
| Close | $390.81 |
| Day range | $390.53 - $395.82 |
| Previous close | $392.76 |
| Session gain | -0.50% |
| Average true range | $5.19 |
| 50d mov avg | $383.11 |
| 100d mov avg | $376.77 |
| 200d mov avg | $347.71 |
| Daily pattern | lb01c |
| Weekly pattern | lb03a |
Lockheed Martin performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Lockheed Martin, the benchmark is made against AeroVironment, Boeing, General Dynamics, Kratos Defense & Security Solutions, Northrop Grumman and Raytheon.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| LMTLockheed Martin | 4.29% | 16.77% | 35.88% |
| AVAVAeroVironment | 19.81% | -8.10% | -32.68% |
| BABoeing | 3.69% | 4.66% | 20.21% |
| GDGeneral Dynamics | 2.24% | 15.05% | 7.11% |
| KTOSKratos Defense & ... | 0.93% | -11.02% | 42.91% |
| NOCNorthrop Grumman | -1.85% | 14.18% | 34.84% |
| RTNRaytheon | 21.45% | 22.47% | 28.39% |
Lockheed Martin competitors
One check before trading any stock is to have a look a list of its competitors, in this case for Lockheed Martin. We selected 6 companies as Lockheed Martin competitors as they are in the same industry or have similar market objectives.- AeroVironment (AVAV)
- Boeing (BA)
- General Dynamics (GD)
- Kratos Defense & Security Solutions (KTOS)
- Northrop Grumman (NOC)
- Raytheon (RTN)
Latest LMT stock news
- Seeking AlphaLockheed Martin: Still A Great BuyJuly 15, 2019
- Seeking AlphaLockheed Martin: More Upside AheadJune 27, 2019
- Seeking AlphaLockheed Martin Continues To ImpressJune 2, 2019
- Seeking AlphaWhat Should I Do With My Lockheed Martin SharesApril 23, 2019
- InvestorPlaceLockheed Martin Earnings: LMT Stock Soars on Strong Earnings BeatApril 23, 2019