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.
|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!