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A Big Upgrade for Lockheed Martin

By Dave Mock – Updated Apr 5, 2017 at 11:51PM

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This bullish call comes from more than just one analyst.

Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track records of the firm behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 140,000 members, many of whom demonstrate better investing insight than published analysts do.

After retreating to a three-star rank for the past several months, Lockheed Martin (NYSE:LMT) has swayed enough top-performing CAPS members to earn an upgrade to four-star status. Among the 1,499 members posting opinions on the defense company, many have offered analysis and commentary to explain their recent optimism.

Many investors think Lockheed will benefit from continued defense spending at home and abroad. Its F-35 fighter plane, with an engine built by United Technologies (NYSE:UTX), has become a top priority for the Pentagon, with the potential for Lockheed to produce as many as 3,000 of the planes.

Furthermore, experts believe that Lockheed will be a favorite over General Dynamics (NYSE:GD) to win a U.S. Navy contract to build the next 10 Littoral combat ships. Where Boeing (NYSE:BA) played a key role in the Bush administration’s plan for European missile defense, Lockheed and Raytheon (NYSE:RTN) are expected to benefit from the recent changes announced by the Obama administration. And some investors point to a growing trend of deals taking place with U.S. allies in the Middle East as yet another source of revenue.

Like Northrop (NYSE:NOC), Lockheed saw pressure on its earnings in the second quarter. But after Lockheed's shares dropped recently, Citigroup (NYSE:C) upgraded the stock. Many CAPS members like Lockheed’s long-term prospects, since the company has a good track record of being consistently free cash flow-positive.  And as a bonus, the company pleased investors by recently raising its dividend by 11%.                                                                                   

Do you think Lockheed Martin deserves its raised status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.

The Motley Fool Stock Advisor service looks for companies with strong management poised to beat the market over the long haul. To see all the stocks that have helped Tom and David Gardner beat the market by 48 points on average, take a free 30-day trial.

Fool contributor Dave Mock recently upgraded his sock drawer with a few less holey pairs. He owns no shares of companies mentioned here. General Dynamics is an Inside Value recommendation. The Fool's disclosure policy won't make you kneel and kiss its ring to gain favor.

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Stocks Mentioned

Lockheed Martin Corporation Stock Quote
Lockheed Martin Corporation
LMT
$413.07 (-2.13%) $-9.01
Citigroup Inc. Stock Quote
Citigroup Inc.
C
$44.26 (-2.90%) $-1.32
The Boeing Company Stock Quote
The Boeing Company
BA
$131.26 (-5.37%) $-7.45
Raytheon Technologies Corporation Stock Quote
Raytheon Technologies Corporation
RTX
$82.03 (-1.70%) $-1.42
General Dynamics Corporation Stock Quote
General Dynamics Corporation
GD
$221.90 (-2.71%) $-6.19
Northrop Grumman Corporation Stock Quote
Northrop Grumman Corporation
NOC
$478.82 (-3.55%) $-17.64
Raytheon Company Stock Quote
Raytheon Company
RTN

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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