Summary
- Lockheed Martin is one of the top aerospace and defense companies in the world.
- It’s shown that the coronavirus pandemic has had little impact on business.
- Take a look at the fundamentals, sentiment, and the technicals to see if you should "Bank" or "Tank" Lockheed Martin.
This week’s Bank It or Tank It covers aerospace and defense company Lockheed Martin (NYSE: LMT). We’ll take a look at the fundamentals, sentiment and the technicals to figure out if this is a stock that you want to bank on over the next 12 months or tank.
Lockheed Martin shares are trying to turn higher after investors are seeing the feared “blue wave” isn’t taking shape. Without total control by the Democrats, the defense industry doesn’t have to worry about budget cuts for now.
This is a company that relies on government contracts. So, with a lot of government spending, and another potential stimulus for the economy, the path for growth is becoming more clear…
In its latest earnings report, it showed that the pandemic had little impact on business and reported backlog orders are at 150 billion. So Lockheed Martin has a lot of contracts coming up in the years ahead to help keep it afloat, regardless of what's going on in the short term.
That makes this a company that's really cruising higher right now, and analysts were loving the stock. They dipped after the earnings report, even though the company beat expectations. It had to do with a softer-than-expected guidance that worried investors.
But the election news could be the piece of the puzzle to kick-start the turnaround for the stock.
We'll take a look at how the technicals are shaping up. But first, let's dive into some of Lockheed Martin’s key stats to break down how the fundamentals look.
LMT - Key Stats
The two things we like to look at for key stats are net income and total revenue. Total revenue is the blue bars on the chart; net income is the line on the chart.
When we look at net income, it had a dip in 2017, but has steadily climbed since. Revenues have been heading higher since 2016.
There really are no hiccups in terms of the stock’s revenue stream. And even with the pandemic, like I said, Lockheed Martin recently had earnings and is still seeing a strong backlog - a strong demand for its orders.
