Lockheed Martin (LMT) has surprised me lately. Like every other stock, shares plummeted during the Coronavirus selloff. While there has been a partial recovery, it has been trending downwards over the past month. In the meantime, the rest of the market has been hitting all-time highs by the day. The reason LMT has surprised me is that the company's cash flows are extremely secured and stable, in a growth sector, with a very attractive valuation. At its current price, it seems like the market has mispriced shares. In a valuation-agnostic world where much of the tech sector has skyrocketed to absurd valuations, Lockheed Martin offers a magnificent opportunity, priced exceptionally attractively.
Lockheed Martin has been delivering astonishing profitability over the past decade. Excluding a one-off charge in 2017, the company has never reported lower EPS than the year prior, achieving a CAGR of 12.1% over this period. DPS has also seen a CAGR of 14.6% since 2010, highlighting management's commitment to returning capital to shareholders.
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