LMT stock: buy or sell?
Updated on:
August 23rd, 2019
5
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?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.Currently, 2 buy setups match with Lockheed Martin stock right now:
| Buy setup | Elegible |
|---|---|
| New all-time high | Yes |
| New 52 week high | Yes |
| 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 collected 15 ratings published for LMT stock in the last 30 days.| 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 |
| 2019-1-9 | Jefferies Financial Group | n/a | Hold |
| 2019-1-30 | Bank of America | n/a | Buy |
| 2019-1-14 | Citigroup | Buy | Buy |
| 2019-1-10 | Vertical Research | Hold | Buy |
| 2019-1-10 | Vertical Group | Hold | Buy |
LMT stock analysis
Daily outlook
After climbing for 4 days, Friday Lockheed Martin fell a fatal -2.33%, closing at $376.89.
Lockheed Martin fell -2.33% to $376.89 after topping to all time highs yesterday. Since May when SMA100d and SMA200d crossed up, LMT price gained $39.73 per share (11.78%). From a daily outlook perspective, LMT is drawing an uptrend of rising tops and rising bottoms. Since its last top on August/13 at $381.51, price slid and bounced up back from $367.17. Breaking down under $367.17 would cancel the current uptrend and it might slide further to test lower supports. Note that $381.51 might act as a resistance line. Trading the long side, we should wait to a new breakout over $381.51 to find the next buy point. On April LMT price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock.
Weekly outlook
Even closing in red ($376.89, -0.03%), Lockheed Martin topped new all time high at $386.93.
LMT shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom late July, LMT climbed unceasignly breaking out to new all time highs. Late May, SMA20w and SMA40w crossed up triggering a rise of 12.23%. Since price and SMA40w lines crossed up early April, LMT climbed $76.26 (25.37%).
LMT stock price history
LMT stock historical price chart
LMT stock reached all-time highs yesterday with a price of $386.93.
LMT stock price target is $356.90
Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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 month we found 13 price predictions 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% |
| 2019-1-9 | Jefferies Financial Group | Reiterates | n/a | $274.00 | - |
| 2019-1-30 | Bank of America | Reiterates | n/a | $390.00 | - |
| 2019-1-14 | Citigroup | Lowers Target | $400.00 | $338.00 | -15.5% |
| 2019-1-10 | Vertical Research | Upgrades | n/a | $340.00 | - |
| (in average) | $356.00 | $356.90 | 0.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
After presenting its last earnings report on April, Lockheed Martin rocketed a super good 20.71%. Unfortunately, reported EPS is not yet available in our database.| 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 sales report draw a pretty good increase of 7.61% to $53,762.00 M USD. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) rose a 5.46% to 9.39%. 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 income was $5,593.00 million USD. If we compare this TTM figures with the last reported annuality, we can esteem Lockheed Martin business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, soared a decent 5.02%. Regarding profit margin, Lockheed Martin stayed stable 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 M in revenues for 2019-Q1, a -0.52% less compared to previous quarter. Reported quarter earnings marked $1,704.00 M with a profit margin of 11.89%. Profit margin inched 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 an amazing increase 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 a stock, it's always 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.
For a better context understanding, the next table shows ownership data compared to other related stocks:
| LMT | AVAV | BA | GD | KTOS | |
|---|---|---|---|---|---|
| Market cap | $107.6 B | $1.2 B | $207.4 B | $53.0 B | $2.0 B |
| Total shares | 285.5 M | 23.9 M | 582.6 M | 288.9 M | 103.5 M |
| Float shares | 237.0 M | 21.4 M | 562.0 M | 277.4 M | 103.3 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
| Friday, August 23rd, 2019 | |
|---|---|
| Open | $385.28 |
| Close | $376.89 |
| Day range | $374.61 - $386.93 |
| Previous close | $385.88 |
| Session gain | -2.33% |
| Average true range | $7.00 |
| 50d mov avg | $366.58 |
| 100d mov avg | $347.80 |
| 200d mov avg | $317.90 |
| Daily pattern | lb03a |
| Weekly pattern | lb03c |
Lockheed Martin performance
To measure stock performance is always good to compare with competitors or related stocks. We compared Lockheed Martin against AeroVironment, Boeing, General Dynamics, Kratos Defense & Security Solutions, Northrop Grumman and Raytheon in the following table:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| LMTLockheed Martin | 11.97% | 24.40% | 20.54% |
| AVAVAeroVironment | -23.29% | -38.42% | -40.48% |
| BABoeing | 0.94% | -15.04% | 4.12% |
| GDGeneral Dynamics | 12.52% | 7.62% | -2.59% |
| KTOSKratos Defense & ... | -11.85% | 9.61% | 50.19% |
| NOCNorthrop Grumman | 16.34% | 25.75% | 22.89% |
| RTNRaytheon | 0.99% | -2.08% | -7.76% |
Lockheed Martin competitors
One check before trading any stock is to review a list of its competitors, in this case for Lockheed Martin. We picked 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