Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



4-Star Stocks Poised to Pop: Lockheed Martin

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense contracting giant Lockheed Martin (NYSE: LMT  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Lockheed's business and see what CAPS investors are saying about the stock right now.

Lockheed facts

Headquarters (Founded) Bethesda, Md. (1909)
Market Cap $25.5 billion
Industry Aerospace and defense
Trailing-12-Month Revenue $46.41 billion
Management CEO Robert Stevens (since 2004)
CFO Bruce Tanner (since 2007)
Return on Capital (Average, Past 3 Years) 27.1%
Cash/Debt $3.42 billion / $5.02 billion
Competitors Boeing (NYSE: BA  )
Northrop Grumman (NYSE: NOC  )
General Dynamics (NYSE: GD  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,692 members who have rated Lockheed believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars TMFDeej and sandvig, both of whom are ranked in the top 1% of our community.

Just two days ago, TMFDeej tapped the stock as a great way to get defensive: "I realize that Lockheed Martin's earnings aren't about to grow any time soon, but this is one cheap stock. It trades at less than 10 times trailing earnings and has a new, improved dividend yield of 4.2%."

Lockheed's dominant position in next-gen defense platforms, solid balance sheet, and cheapish valuation support its four-star CAPS status. In fact, Lockheed currently sports a higher dividend yield than defense foes Boeing (2.4%), Northrop (3.1%), General Dynamics (2.6%), and Honeywell (NYSE: HON  ) . With as many positives as CAPS All-Star sandvig lists, Lockheed might be an income opportunity that's too good to pass up:

Its [ROE] exceeds 25%.
It pays an attractive dividend.
It is priced near the low end of a 52 week range.
Its principal customer prints the money.

It seems to me that there must be a large inertia factor in advanced weapons systems, products, and services. I would think that one does not casually drop a weapons defense system or plan.

What do you think about Lockheed, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. General Dynamics is a Motley Fool Inside Value pick. Try any of our Foolish newsletter services free for 30 days.  We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1348473, ~/Articles/ArticleHandler.aspx, 10/28/2016 8:22:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:00 PM
BA $143.31 Down -2.23 -1.53%
Boeing CAPS Rating: ****
GD $150.13 Down -1.01 -0.67%
General Dynamics CAPS Rating: ****
HON $108.83 Down -0.60 -0.55%
Honeywell Internat… CAPS Rating: ****
LMT $248.53 Down -1.56 -0.62%
Lockheed Martin CAPS Rating: ****
NOC $225.35 Down -2.70 -1.18%
Northrop Grumman CAPS Rating: ****